Barclays Global Credit Bureau Forum - Wednesday 8 September 2021 - Experian plc
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Barclays Global Credit Bureau Forum Wednesday 8 September 2021 © Experian, 2021. All rights reserved. The word "EXPERIAN" and the graphical device are trademarks of Experian and/or its associated companies and may be registered in the EU, USA and other countries. The graphical device is a registered Community design in the EU. Other product and company names mentioned herein are the trademarks of their respective owners. Experian Public.
Welcome/Introduction Paul Sullivan, Barclays
Agenda Welcome/Introduction Paul Sullivan Q&A with Lloyd Pitchford Moderated by Paul Sullivan Health Jennifer Schulz and Tom Cox Automotive Jennifer Schulz North America Consumer Information Alex Lintner Q&A Jennifer Schulz, Tom Cox, Alex Lintner and Lloyd Pitchford Break North America Consumer Services Jeff Softley Consumer Services in Brazil Silvio Frison Q&A Silvio Frison, Jeff Softley and Lloyd Pitchford. Moderated by Paul Sullivan Wrap up/Close Lloyd Pitchford and Paul Sullivan 3 © Experian Public
Q&A with Lloyd Pitchford Moderated by Paul Sullivan
Health Jennifer Schulz and Tom Cox
Who we are
Market leader in healthcare revenue cycle management
Extensive and growing client footprint, serving an increasingly diverse health
ecosystem – from 850 clients before Passport acquisition in 2013 to 8000+ today
Evolution from pure-play software to software plus data / analytics serving a diverse
and growing set of client needs
Strong track record of financial performance accretive to Experian Group
6 © Experian Public
Experian Health
US$8-10bn
Ambition Double revenue to US$1bn+ in medium term
Large
Market
Opportunity*
US$425m
US$267m
US$5.8m Experian Health
Revenue / EBIT
2008 2015 TODAY … AND BEYOND
Key Revenue US$
7 © Experian Public
* Not to scale
Several important drivers continue to underpin our business
Rising Administrative Patient Consumer
Spend Waste Responsibility Pain Points
US healthcare Over US$900 billion in Over US$400 billion in Over ¼ of consumers
expenditure greater waste for US annual patient “out of report being charged
than US$4 trillion (18% healthcare, of which pocket” expense, more than anticipated
of GDP), growing US$266 billion from growing from high-
almost 6% per year administrative deductible health plans Over 70% want more
complexity digital and self-service
options
• Insurance • Prior Authorizations • Patient Payments • MyHealthDirect
verification • Contract • Patient Financial • Registration
• Claims Management Clearance and Accelerator
• Patient Identity Collections • Patient Financial
Management • Coverage Discovery Advisor
8 © Experian Public
Unique assets to serve a growing set of end-markets
Unique data … … enabling many solution areas … … across a growing
set of end markets
…all driving automated workflows for the provider and an
Credit Bureau Data
improved experience for the patient…
Business Data PATIENT/
PROVIDER CONSUMER
Marketing Services
Data
REVENUE IDENTITY PATIENT &
Experian Data Quality CYCLE MANAGEMENT CONSUMER
WORKFLOW ENGAGEMENT
Functionality SOFTWARE
PAYER PHARMACY
Decision Analytics
+
Healthcare Data
Collect every Manage patient
identity
Improve patient
experience
(via clients)
dollar due
9 © Experian Public
Substantial opportunity to drive future growth
REVENUE IDENTITY PATIENT &
CYCLE MANAGEMENT CONSUMER
WORKFLOW ENGAGEMENT
SOFTWARE
Total
Addressable $3-4bn $0.5 - $1bn $4-5bn
Opportunity
Continue to grow hospital Cross sell fraud & identity Scale MyHealthDirect
footprint solutions across client footprint
Growth Further expand in non- Scale Patient Identity Drive client adoption of full
Strategy hospital provider segments Resolution suite Patient Engagement* suite
Attack whitespace for Innovate to address Expand capabilities to
underpenetrated products additional use cases extend serviceable market
* Our Patient Engagement suite is our patient facing bundle that includes MyHealthDirect / Patient Schedule, Registration Accelerator, and Patient Financial
Advisor – which clients can purchase as a full suite or as individual products
10 © Experian PublicWe’re continuing to drive a seamless patient experience
Engage Schedule Register Estimate Pay Check-In
Live clients and 10 Patient appointments Pipeline growth
40 more in active
implementation
1.1m booked across ~5,500
providers in 2021 (YTD)
44% from FY21Q1 to
FY22Q1*
* For Patient Engagement suite including MyHealthDirect / Patient Schedule, Registration Accelerator, and Patient Financial Advisor
11 © Experian PublicKey Takeaways
History of strong and consistent growth, building from a series of four
1 acquisitions combined with organic innovation
Scaled business with a competitive position across many segments within
2 healthcare Revenue Cycle and several investments in promising growth
segments including Patient and Consumer Engagement
Demand drivers underpinning our markets that continue to point towards
3 growth in client demand and an evolving set of needs that we are positioned
to serve
A robust strategy leveraging our scale and unique data assets to drive simpler
4 and more seamless healthcare experiences
12 © Experian PublicAutomotive Jennifer Schulz
Experian Automotive
Business Unit Overview
Comprehensive portfolio of unique Auto products and data assets powered by all US Experian Units
OUR PRODUCTS
AutoCheck® Auto Marketing Auto Statistics Credit Solutions Value Recovery
• Vehicle History Reports • Targeting • Market Analysis • Profiles • “Power booking* by dealers
• Summary Reports • Retention • Statistical Reports • Prescreen / Prequal • Diminished value for
• Report Elements • Engagement • Industry Loyalty • Account Management lenders’
• Attribution & Analytics
EXPERIAN DATA
North American File One℠ Consumer View℠ Online Activity National Fraud
Vehicle Database℠ Credit Database Marketing Database Database Database℠
1 of only 2 vehicle 1 of only 3 credit bureau 1 of only 3 consumer 5.4 billion+ digital Multi-industry database
databases that knows databases. databases. actions from all device of verified fraud records.
every vehicle on the road. types.
14 © Experian PublicExperian Automotive
Large robust industry with strong track record of growth: Lenders / Insurance
Revenue, Profits, Product Sets, and Clients Served 17.5%
Over 90% of the top-50 auto
lenders rely on our reporting /
solutions
20 yr.
CAGR Original Equipment
$2.5b+ Market Opportunity $200m+ Manufacturers
Over 85% of the top
manufacturers
use Experian solutions
Dealers / Groups
$100m Over 15,000 dealers draw on
our broad-range of solutions
$50m Experian Auto
Integration Partners
Revenue Linked with nearly all major
industry participants including
Portals, Media, Aftermarket,
etc.
$10m
Vehicle Auto Auto Auto Diminished Value
Credit Recovery
History Statistics Marketing Loyalty Value Consumer
2000 2010 TODAY Journey w/ECS
Ambition Double in size of revenue to $500m+ within the next five years
15 © Experian PublicVision: Power Every Decision
Along the car buying, selling, and owning process, that drives the best outcomes
Customer Assessment Consideration Shopping Purchase Owning
of consumer needs & to narrow down the (locating the car, doing test (Contract negotiation, (Post-sales, service,
Journey choices
finding options drives) qualification, etc.) maintenance)
Understand the Market
Acquire Customers
Auto Client
Needs Manage Risks
Strengthen Relationships
Understanding Targeting the Right Consumer and Asset
Transparency Influence Loyalty
the Market Customers
Select • Conquest Analysis and • Vehicle History Reporting • Customer Data Management
• Market Statistics & Reporting
Experian Target Marketing • Credit Financing + Collections + and Recall Notification
• Loyalty Measurement
Solutions • Lead Qualification and • Portfolio & Fraud Solutions • Customer Analysis + Target
• Market Data/Segmentation Enrichment Marketing
Market Position Data Assets One Experian Expertise
Why
We Win! Scale: #1 or 2 in 4 of 5 Unique data assets: Vehicle, Leverage: CIS, DA, EMS, Dedicated Vertical: Proven
Product Lines Consumer, and Credit Partner with ECS Track Record 20+ years
16 © Experian PublicIndustry Trends
Trends Client Responses Experian Opportunities
Several mega-trends
Dealers/
Online Virtual & physical Digital
are
on the RISE
Retailers
digital retail advertising media mix service process which will slowly transform the
industry, but major changes
Enable full “contactless”
sales process
Reimagine marketing &
advertising approach
Appointment scheduling,
drop-off & pick-up service decades
will take
Lenders
Drive MORE Improve Extend MORE Lead-gen
qualified leads customer acquisition loan durations activity
COVID slowed
shared
Innovate & invest to
drive more leads
Streamline application process
while reducing fraud
Ramp-up pre-qualify &
offer upgrades
Also, capturing consumers
during sales process &
autonomous;
Original Connected
& electric
Equipment Challenges Avoid future Consumer Driving MORE
Manufacturers ramping production “tail events” purchasing awareness & processes
will continue to grow.
Not all components Through safety processes Reimagine process, invest Transparency, de-globalizing
immediately available & building resilience in top of funnel & virtual & de-risk supply chains
17 © Experian PublicKey Strategic Focus Areas
Pipeline in place for continued growth in reaching our ambition
Innovation Initiatives Consumer
Powered by Auto Data Services+ Auto
Make marketing easy to find,
engage, convert and retain
customers.
Taking out the friction in vehicle
financing & transacting
online and offline.
Highlight
Initiative
Power insights and decisions
for vehicle marketing, sales
and financing.
Leverage unique set of vehicle,
consumer, and credit data assets
across One Experian to create
transparency and sustainable
competitive advantage.
18 © Experian PublicKey Strategic Focus Areas
Pipeline in place for continued growth in reaching our ambition
Innovation Initiatives Powered by Auto Data EMS + Auto
Make marketing easy to find,
engage, convert and retain
customers.
Cars Consumers Credit
Taking out the friction in vehicle Experian Marketing Engine
financing & transacting
online and offline.
Highlight Identity Auto Marketing Audience Media Campaign
Initiative Resolution Insights Targeting Activation Measurement
Power insights and decisions Link fragmented View brand Leverage Leverage Determine the
for vehicle marketing, sales data across performance & automotive, relationships ROI of your
and financing. channels to build penetration predictive & with partners online and off-
customer across market. lifestyle data. and digital line campaigns.
profiles. platforms.
Leverage unique set of vehicle,
consumer, and credit data assets
across One Experian to create
transparency and sustainable Auto + Marketing Services
competitive advantage.
19 © Experian PublicExperian Automotive
Key takeaways
Strong Market Unique One Auto
Position Data Assets Experian Expertise
• A growth business • Data is transforming • Innovative & • Dedicated business
with a strong record Automotive comprehensive unit with over 20
of revenue growth portfolio of products years of expertise
• Well position for • We have competitive • Leveraging the power • Deep knowledge of
continued growth advantage with our of all US Experian BU the industry and
diverse data assets solutions clients needs
20 © Experian PublicNorth America Consumer Information Alex Lintner
OUR MISSION
BE THE CONSUMER’S BUREAU
EXPAND EXTEND GROW EMPLOYER SERVICES
THE CORE INNOVATION SUCCESS AND VERIFICATION SOLUTIONS
• Extend market leadership in • Broaden our advantage with Ascend • Introduce competition and differentiate
Consumer-Permissioned Data platform and ensure seamless integration with high-touch Customer Service
• Add to our data assets to drive across Experian and innovation
financial inclusion • Lead in Buy Now Pay Later • Grow records to increase the
• Grow Mortgage presence into • Deliver Rental Industry firsts Verification Solutions hit rate
additional segments • Maximize value across
use cases / markets
Invest to strengthen leadership position in technology
22 © Experian PublicOur Mission to Be The Consumer’s Bureau
We unlock the power of data
to create opportunities, improve lives
and make a difference in society
INDUSTRY-LEADING DRIVE FINANCIAL
DATA ACCURACY INCLUSION
DIFFERENTATED CONSUMER EMPOWERMENT
DIGITAL EXPERIENCE / EXPERIAN BOOST
2323 ©©Experian
ExperianPublic
PublicE X P A N D T H E C O R E
Helping consumers access credit through advanced, real-
time analytics and differentiated consumer-permissioned data
Grow Launch
Experian BoostTM New-to-Credit
Expand
Rental Data
Aim to reach 26m+ credit
8m+ consumers invisibles and emerging
and growing consumers
Aim to engage
100m+ renters
In partnership with Experian Consumer Services
24 © Experian PublicE X P A N D T H E C O R E
Adding to our data assets to drive financial inclusion
Experian now scores the entire ‘applying-for-credit’ population with our full range of expanded data
Buy Now
Lift Premium, a recently released Pay Later
Rental
Consumer-
credit score, aggregates Permissioned
Data
expanded-FCRA data to deliver: Utility
Income and Telco
Increased ‘visibility’ and
New data assets allow us
to score 17m previously
Employment
Traditional Property
Credit
credit invisible consumers And
we’re just
getting
Data
Increased ‘scorability’
Bank started…
Ability to score 96% of U.S. Transaction Public
credit-eligible consumers as License
compared to 82% leading scores Credentials
Clarity
Social Security
Increased risk ‘predictability’ Alternative Background
Administration
26% improvement over Finance Education
previous thin file scores
25 © Experian PublicE X T E N D I N N O V A T I O N S U C C E S S
Broadening our advantage with Ascend with near-term
total contract value reaching US$0.5 billion
Ascend Ascend Ascend Ascend Ascend Ascend Ascend
Business Case Build Analytical Account Marketing Data Services CECL Portfolio Go
Approved Phase Sandbox Review Forecaster Loss
Forecaster
COLLABORATION A CROSS DA TA, DE CISIONING, A ND TA RGETING B US INESSES
FY17 H1 FY17 H2 FY18 H1 FY18 H2 FY19 H1 FY19 H2 FY20 H1 FY20 H2 FY21 H1 FY21 H2
Global Cumulative TCV US$16m US$50m US$100m US$150m US$270m US$313m US$344m ~US$370m
We estimate the global market for analytics platform services is US$2bn+
26 © Experian PublicE X T E N D I N N O V A T I O N S U C C E S S
Historically, one third of our growth has come from
innovations… with ample runway moving forward
• US$300bn+ market value
Fintech
• 25% CAGR (industry)
• US$160bn+ expected purchase volumes by 2025
Buy Now Pay Later • 50%+ per year industry growth rate
• Gaining share in US$500m+ total market
Rental Industry • 100m renters
27 © Experian PublicG R O W E M P L O Y E R S E R V I C E S A N D V E R I F I C A T I O N S O L U T I O N S
The market is now open to competition
and we are offering clients more innovation and choice
Experian Employer Services Experian Verification Solutions
Growing employment and
Acquired entities delivering a comprehensive
portfolio of high value services to employers
income data resource Portfolio of solutions to enable access to
income and employment data for verifications
KEY SERVICES KEY SERVICES
Unemployment Claims Services (UCM) Income Verification
Employee Tax Credit Services (WOTC) Employment Verification
Employment Eligibility (I-9) Compliance EMPLOYER CONSUMER Asset Verification
PAYROLL CONTRIBUTED
Verification of Employment Fulfillment DATA DATA
Consulting services PAYROLL
PARTNER
DATA
We are growing two discrete, interdependent businesses to address a tangible market opportunity
28 © Experian PublicG R O W E M P L O Y E R S E R V I C E S A N D V E R I F I C A T I O N S O L U T I O N S
Grow records to expand Verification fulfillment capability
Existing instant-hit coverage for Core, Plus, and Premium Our plan to grow access to records
Mid-term target
80m
Near-term target Grow Employer Services client base
50m
Key figure = 80m
Represents ~50% coverage
over employed US population
Payroll active records
‘Unlock’ records for other purposes
30m from Employer Services clients
Additional payroll and
33.6m
consumer-permissioned partners
(Available records – July 2021) Additional investments and acquisitions
0m Active records for Core, Plus and Premium: 160m
A consumer with employment record with pay
within last 90 days from inquiry date
29 © Experian PublicG R O W E M P L O Y E R S E R V I C E S A N D V E R I F I C A T I O N S O L U T I O N S
Strong traction for Experian Verify with high demand from existing
financial services clients and significant growth opportunity ahead
F I N A N C I A L S E R V I C E S
CURRENT MARKETS
Card Personal Loans Auto HELOC Mortgage
(GSE approval tentatively expected
for October and LOS integrations underway)
Tenant Screening Alternative Financial Services
UP NEXT
Employment Screening Insurance Public Sector / Government
(AUGUST) (SEPTEMBER) (FY22 Q3)
30 © Experian PublicI N V E S T T O S T R E N G T H E N L E A D E R S H I P P O S I T I O N I N T E C H N O L O G Y
We’re about halfway through our technology transformation
and have already driven sustainable competitive advantage
CLIENT-VISIBLE RESULTS TO DATE FUTURE CLIENT BENEFITS
“Always-on” big data and analytics Elimination of legacy mainframe
Dramatically reduced/eliminated time-consuming handoffs Enhanced resiliency for all clients through new platform services
Enhanced information security Seamless advanced analytics deployment
Risk-point reductions with streamlined access and delivery Lead in modern ModelOps services that support end-to-end
advanced analytics needs
Rapid product innovation
Faster access to new features and capabilities Fully integrated solution suites
Seamless integration of Ascend with all other global platforms
Fresher data starting with PowerCurve for easy upgrades and interoperability.
Continuous updates and deployment-aware refreshes
Expanded on-demand big data
Access to the most comprehensive FCRA and non-FCRA data
sources to perform end-to-end modeling and analytics.
Significant cost savings already achieved and increasing
31 © Experian PublicWe are already the largest credit bureau in North America and
we are extending our lead
Expand the Core Differentiate our Continue to flex our
• Helping consumers access new businesses innovation muscle
credit through advanced analytics • Two discrete businesses • Opportunity in Fintech, BNPL
and differentiated data offer more choices for clients and Rental industries
• Expanding data assets to • Record growth will expand • Continue Ascend growth with
drive Financial Inclusion fulfilment capability deeper relationships and new clients
• Great early traction in financial • Seamless integration across
services with primary segments platforms to accelerate
still to launch analytics deployments
Ambition and market opportunity to drive sustained double-digit growth
32 © Experian PublicQ&A Jennifer Schulz , Tom Cox, Alex Lintner, Lloyd Pitchford
Barclays Global Credit Bureau Forum Wednesday 8 September 2021
North America Consumer Services Jeff Softley
We have a unique opportunity to become the largest, most
inclusive financial platform in the world…
Our Ambition
100m+ Experian members in North America;
Hundreds of millions globally
Create high-value, daily interactions with members
World-class Net Promoter Score
Unique permissioned data model, at scale
Consistent double-digit growth
Innovating at scale globally to
bring financial power to all
36 © Experian PublicOur powerful distribution platform and diverse business model
are uniquely positioned, and backed by a credit bureau
Our position Our business
We sit at the center
of the financial Powerful Diverse
ecosystem... Distribution Business
We play a central role in Platform Model
important, digital workflows
Traditional Key
bureau Audience & Strategic Data &
competitors Engagement Drivers Monetisation
do not sit
fully within • 116m+ members
any of these • Diversified
markets globally business model
• High engagement • Recurring and
model creates transactional
opportunity revenue model
• Captive audience • Material un-tapped
enables value value in Average
expansion Revenue per User
(ARPU)
With the key to unlock With real materiality of
opportunities for consumers direct relationships...
Over US$16bn in global TAM, with our Amongst the largest global
data enabling many consumer journeys financial platforms
37 © Experian PublicWe are truly in a global league of consumer financial platforms
with strong enrollment of our mobile app
Global Customers NA Mobile App Downloads by Quarter
403m
116m+
110m
18m
16m
15m
12m
10m
NA Experian momentum and market share is
6m accelerating acquisition and customer growth.
Sources: AppAnnie, Apptopia, Internal Research
38 © Experian PublicIn NA, we have launched and scaled new US$100m+ business
lines with a portfolio of incremental opportunities ahead of us
Market Opportunity Annual Run Rate (ARR) by Vertical
New US$10bn+We will invest in 4 key growth drivers which fuel the Direct to
Consumer business
AUDIENCE
Member Base (m)
AUDIENCE MONETISATION
The span of product
verticals covered in our
The size of our ecosystem and the
customer base relevance of our
engagement with
consumers
MONETISATION
Average Revenue per
Monthly Active User
DATA ENGAGEMENT ARPMAU (US$)
Orchestrating first party The frequency of
and consumer opportunities we have to
permissioned data to interact with our
drive personalised 1:1 DATA
relationships customers % Utilisation
We will win by providing a depth and
breadth of value to consumers that
ONLY we can
ENGAGEMENT
Daily Active Users (m)
40 © Experian PublicThese key growth drivers have scaled the Credit Card vertical
which is now a US$500m+ opportunity
BEFORE TODAY FUTURE
2 years ago
AUDIENCE 20m 45m+ 100m+
Members Members Members
ENGAGEMENT 15% 25% Daily
Monthly Monthly
DATA 50 1k+ 100k+
Attributes Attributes Attributes
MONETISATIONGrowing our audience...
FY22
Revenue
Our best Strategic New to Credit program
marketing partnerships with 2 enables first time access
campaign ever, top-five neo-banks to credit in minutes
continues Customer & data acquisition Launching Q3
New to Credit
tools open an
untapped
segment
42 © Experian PublicExpanding monetisation...
FY22
Revenue
Multiple US$100m+
verticals in incubation
Reinvent how
consumers shop for
insurance
Premium membership Next generation
expansion of auto insurance
Digital privacy launching in Q3 marketplace
Digital privacy
features expand
premium
membership
43 © Experian PublicPremium membership now draws from a growing
free member base and expanding product FY22
Revenue
Underway
Customer Expansion
Base Financial Identity Potential
Health Management
Credit Permission
Education -ing
Current Premium
Free Features Ecosystem
Identity
Theft Verification
Protect
Significant
Premium Large pool of expansion
opportunity with Digital
Consent
potential for
expanding Privacy premium
freemium audience membership
Launching
Q3
Premium Freemium model enables Large, adjacent features will Focus on financial health,
continued scale of the augment the value of privacy and identity
Subscription: premium member base premium membership management
44 © Experian PublicOur distribution platform can be paired with
Experian's automotive assets to create material FY22
new revenue streams
Revenue
Expansion
Potential
% of Member % of Vehicle
Base in the Households Shopping
Market for Auto* with a Vehicle Sale of
Auto Current
52% 91%
Insurance Vehicle
Offers
Current Auto
Features Consumer
Ecosystem permissioned
% Vehicle & Vehicle Loan data at scale
Insurance Shopping Background
Check Shopping can fuel both
Done Online Consumer and
Extended B2B businesses
>70%
Maintenance
Warranty
Initial efforts
have created
annualised Experian data assets
exit revenue underly several
circa US$40m key consumer needs
Sources: *Engaged customers (logged in in the past 180 days) with ITMM > 700 (high intent), US Census, AutoTrader
45 © Experian PublicScaling engagement...
FY22
Revenue
Daily utility
products in
development
New
mobile app New app
provides
insight daily
Compounding
revenue potential
as engagement
and monetisation
grow
46 © Experian PublicUnleashing data to help consumers...
FY22
Revenue
New, 10% of data
expanded in use, New boosts
ways for investing to coming
consumers unleash 1:1
to share data personalisation
Available
Data Points Consumers can
boost their credit
scores with
utility credentials
Volume of (in addition to
available data bank, credit card)
is growing
exponentially
47 © Experian PublicOur platform, role and mission positions us to create social good
ACCESS TO $
SAVE MONEY $ REDUCE DEBT
FINANCE
We will help US
We will help
We will save US consumers resolve
~25% of the US adult
consumers ~US$20m in
population get better
US$100m+ by delinquent debt and
access to credit and
helping them manage get them
control over their
their financial lives back on a path to
financial health
financial health
Financial power to all.
48 © Experian PublicConsumer Services in Brazil Silvio Frison
Strategy KPIs Products
Serasa ecosystem - enabling Credit for All
A scalable financial platform with an end-to-end digital collection, credit marketplace and subscription solution
Net Revenue (US$ millions) Highlights
Unique opportunity to become the largest consumer financial
+110% platform in Brazil
94
Positive data will accelerate the shift to digital
36
5 7 15
Potential to be bigger than B2B business in Brazil
FY17 FY18 FY19 FY20 FY21
Serasa will be the go-to place for consumers digital financial needs
Productivity (US$ thousands/FTE/month)
+110% CAGR in 4 years (169% last year)
+58% Exclusive and compelling local brand
29
13 Positioned to be the market leader
5 5 7
FY17 FY18 FY19 FY20 FY21
*Source: Team analysis | FY21 Fx rate: R$ 4.12.
50 © Experian PublicStrategy KPIs Products
Evolution of credit & payments in Brazil
Pandemic has accelerated the search for credit and digital payments
Credit market size (US$ billions) Transactions by channel breakdown
Internet & Mobile banking
Other channels
+16% 976 POS
844 65bn 73bn 81bn 86bn 104bn
52% 57% 60% 62% 67%
33% 28% 24% 22%
19%
15% 15% 16% 16% 14%
2019 2020 2016 2017 2018 2019 2020
* Source: World Bank; IMF | Bacen: 2020 report | Febraban/Deloitte | Other channels include ATM, agencies, contact center.
51 © Experian PublicStrategy KPIs Products
Consumer Services Strategy: Credit for All
Serasa delivers a broad market leading platform of services to enable credit access for all Brazilians
Consumer Financial Life Timeline and Target Products
Engagement: Serasa Free
Free ID Financial Positive
Score
Report Education Data
Transactional Products
Collection Marketplace Credit Marketplace Premium Subscription
0 300 700 1000
Distribution
Serasa Media/E-wallet
52 © Experian PublicStrategy KPIs Products
Rapidly scaling memberships
Serasa has connected with more than 1/3 of the Brazilian adult population
Free Member Enrollments (millions) Serasa Solutions
59 Free Report
+51% 45
37% of
32 Brazilian Serasa Score
22 adult
11 population
ID Monitoring
FY17 FY18 FY19 FY20 FY21
Financial Wellness
Brazilian Population (millions)
E-wallet
Total
Positive Data
Adult
Banked 213 15m
new
161 banked
127
vs 2020
* Source: IBGE, 2021 | Instituto Locomotiva: Abr, 2021 | Team analysis.
53 © Experian PublicStrategy KPIs Products
Serasa | The largest Brazilian fintech
Driving mass consumer engagement
Web Visits (millions) Financial Audience Share (%) *Nov/20
589 20%
+82% 433
291 65% 10% 10% 10%
Organic 9%
194 Traffic 6%
54
FY17 FY18 FY19 FY20 FY21 Caixa Serasa Bradesco Itaú Santander Nubank
Unique Web Users: Monthly Average (millions) App: Active Users (millions)
+31% 20 +34% 8
16 6
12
FY19 FY20 FY21 Mar/20 Mar/21
* Source: Google Analytics; Similar Web; Team analysis | Organic Traffic: Direct access to the website | Financial Audience: searches on Google; Nov 2020.
54 © Experian PublicStrategy KPIs Products
Collection Marketplace (Limpa Nome)
Limpa Nome is already the go-to solution for Brazilians to negotiate their debt and pay their bills
Partners Discounts Conceded (US$ billions)
+102%
+341%
53 13 85%
34 Average
Discount
13 4
1
FY19 FY20 FY21 FY19 FY20 FY21
Deals (millions) Limpa Nome | Net Revenue (US$ millions)
+299% +299%
26 63
8 19
2 4
FY19 FY20 FY21 FY19 FY20 FY21
*Source: Team analysis | LNO came to ECS in FY19 | FY21 Fx rate: R$ 4.12.
55 © Experian PublicStrategy KPIs Products
Collection Marketplace (Limpa Nome)
Limpa Nome enables Brazilians to negotiate their debt, offering them an end-to-end digital solution
How Limpa Nome Works
Revenue Sharing
Debts Offers Deal Transfer Fee Score Turbo
Delinquent Back to credit
Payment goes directly to the partner
Limpa Nome connects the delinquent How the money flows Delinquent users
users with our integrated partners coming back to credit
56 © Experian PublicStrategy KPIs Products
Collection Marketplace (Limpa Nome)
Despite Limpa Nome’s great success, there are still four big issues to be resolved
Latent Opportunities
1 Money Flow 3 Expansion to SMB Market
Money flows to creditor/lender first Focus is currently on large lenders
4-6 weeks for Serasa to get the money Not seizing the incremental opportunity
2 Marketing Efficiency 4 Consumer Contributed Data
Money spent to reach consumers who Score out of date
have already paid off their debts
Need to define the right targets Upset consumers
57 © Experian PublicStrategy KPIs Products
Collection Marketplace (Limpa Nome)
E-wallet and Self Setup provide solutions to these issues and complete the journey of collection digitisation
Solutions
E-wallet Limpa Nome Self Setup
Solution for 1, 2 and 4 Solution for 3
Integrated gateway
Company
Banking-as-a-service
Payment Debts
Money will flow first to Limpa Nome
Improves marketing efficiency
Real-time score update
User
58 © Experian PublicStrategy KPIs Products
Credit Marketplace (eCred)
E-cred provides an ecosystem to connect big banks and fintechs with our membership base at scale
Members e-Cred Platform Main Transactional Partners
Traditional Banks
59 million Revenue
Share
Fintechs
Member Base Personal Loans
Serasa Ecosystem Credit cards
Media
59 © Experian PublicStrategy KPIs Products
Credit Marketplace (eCred)
eCred enables Brazilians to easily compare and obtain credit, the main reason they connect with Serasa
Main Offers eCred: Confirmed Orders (millions)
Credit Card
+66%
Personal Loans
5
Payroll Secured Loan
3
2
Secured Loan
FY19 FY20 FY21
eCred: Net Revenue (millions) eCred: Credit Cards (thousands)
+183% +240%
18 1,594
7
2 138 362
FY19 FY20 FY21 FY19 FY20 FY21
* Market size source: Bacen/Febraban; Feb, 2020 | Source: Team analysis | FY21 Fx rate: R$ 4.12.
60 © Experian PublicStrategy KPIs Products
Serasa Premium
A subscription solution designed to provide enhanced benefits to our users
Free vs Premium Functionalities Lock & Unlock
Consumer:
Define Serasa
Score
availability to
market
Serasa:
Score control
Companies:
Open to credit
information
61 © Experian PublicWhat is next?
Serasa will be the one-stop-shop for financial life
SERASA
• Comprehensive • Score improvement
credit scan
• Renegotiate debts • Personal credit
• Get special discounts • Credit card
• E-wallet • Financing
• Financial education • ID monitoring
Score 0 Score 1000 • Cashback
62 © Experian PublicQ&A Silvio Frison, Jeff Softley, Lloyd Pitchford Moderated by Paul Sullivan
Wrap up/Close Lloyd Pitchford and Paul Sullivan
Barclays Global Credit Bureau Forum Wednesday 8 September 2021
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