Experian Consumer Services - 17 June 2021
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Experian Consumer Services 17 June 2021 ©2021 Experian Information Solutions, Inc. All rights reserved. Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public.
Experian North America Consumer Services Jeff Softley President, D2C
Our strategic priorities and growth agenda are ambitious
• We are developing a deeper relationship
We will be the with consumers; playing a more central
pre-eminent role in their day-to-day lives
platform for
• Our brand and our data give us the
consumers to license to support consumers across many
manage their areas to enhance their financial lives
financial lives
• We are taking share across markets as
we scale
• We are accessing substantial new
growth markets through accelerating
product innovation
3 © Experian
We are evolving our consumer value proposition, our role,
and our brand to achieve scale and growth
Direct to Phase 1 Phase 2 Phase 3
Consumer
Growth Commoditization Business Model Scaling Ambition • Use our unique role and
Horizons & Disruption Stabilization position to build “first, best,
only” products which give
Timeframe FY10 to FY16 FY17 to FY19 FY20+ consumers more control
• Scale our customer base
TAM $1bn+ $2bn+ $10bn+ and expand our brand
• Harness consumer
Member Base contributed data value
Size 2m to 5m 5m to 25m 25m to 100m+ propositions to access and
disrupt broader markets
Member Few times Every other Monthly
Engagement per year month • Franchise expansion to
access further growth
Verticals
Targeted 1 3 10+
4 © Experian
Macro trends play to Experian’s advantage
Accelerating digital Consumer contributed Consumers need help
transformation everything • 2 out of 3 consumers say they
• Generational and technology • Consumers are getting more are worried about their finances
Macro shifts advancing rapid adoption comfortable with sharing their
data for benefits
• Consumers have grown less
optimistic about the short-term
Trends • The COVID-19 pandemic is
accelerating need for digitized • More and more “real world” outlook for the economy and
processes outcomes are being realized labor market and remain
through consumer contributed concerned about their financial
data prospects
Experian’s Unique Experian Boost and Consumer Trust as
Position More Foundation
• Experian’s assets and leading • First mover advantage and an • Consumers trust Experian to
role in foundational financial expanding set of use cases produce financial health products
processes paired with our that they would trust and use
Experian growing consumer business
• New value propositions in
development against a backdrop • Consumers have a confidence in
Advantage create new opportunities to of digital transformation in the Experian’s ability to meet their
enable consumer control and market evolving needs during times of
serve partners uncertainty
5 © Experian Sources: ECS COVID-19 & Consumer Confidence Survey, March 2020
EY-Parthenon PFM Dynamics Consumer Survey
The Experian advantage: Our consumer-contributed data
strategy creates value for consumers, partners and the business
Experian Boost Momentum Favorability Engagement Monetization
% Aware of Experian Boost Awareness of Return rate is Free customers
Experian Boost improved for who complete
54% greatly improves customers who Boost generate
favorability use Boost higher revenue
42%
25%
13%
FY20 H1 FY20 H2 FY21 H1 FY21 H2
6 © Experian Sources: Brand Health Tracker Report by Northstar Research Partners
The Experian advantage: Scale is creating new opportunities
and more ways to engage consumers
Free Customer Base Total Login Volume Average Number of Overall Upsell Rate*
Free Members Logins per Customer Free Members
41M per month
Free Members
37%
Growth
YOY
FY17 FY18 FY19 FY20 FY21
Scale enables the business More customers Customers are More customers
to create meaningful entry are engaged engaged are invested
into new markets more often
7 © Experian *Rate of consumers upgrading to one of our paid membership products
The Experian advantage: Partners trust our quality and
consumers trust Experian
COVID has created a unique market opportunity to
serve consumers and partners in meaningful, new ways
Partner • Lending guidance in uncertain market
CreditMatch is Needs • Access to high quality new customers
growing; while • Confidence in long term value and profitability
Bankcard
inquiries have Partners maintained their relationships with CreditMatch even
declined while reducing their network and marketing spend
CreditMatch onboarded 5 new partners and 6 new credit
FY21 H2 YOY product offerings during COVID
Growth
• Advice on how to safeguard their credit
Consumer
Bankcard Hard Needs • Access to tools that promote financial wellness
Inquiries • Confidence to gain credit
CreditMatch
Approvals Net Promotor Score is elevated for CreditMatch consumers,
indicating that access to tools that help them manage their
financial lives creates a more favorable view of the brand
Expanded Experian Boost to include additional credit line
options, e.g., streaming services
8 © Experian
Source: Experian State of the Market Trends
Our growth agenda will extend into large and adjacent markets
where we are competitively positioned
FINANCIAL
HEALTH $5bn+ IDENTITY
MANAGEMENT $3bn+ MARKETPLACE
$10bn+ *
$
We will help consumers manage Identity services are more than just Consumers can use their data and
their financial lives, not just their a passive insurance and protection financial profiles to access new
credit, with new freemium features proposition. Consumers can products across more areas of their
that assist consumers in manage their privacy and financial lives.
improving their financial control their data across new and Partners can access a stream of
position and saving money. expanding use cases. qualified, high value customers.
9 © Experian Note: Sizing estimates are preliminary. Shaded circles are the markets we currently operate in.
*Includes first-party & third-party lead gen
We are expanding with a new breed of “Smart” financial
health products; fueled by consumer contributed data
FINANCIAL 8:00 8:00 8:00
HEALTH
Personal Finances
$
1.4M $1M 50M+
Connected Saved Credit Score
Accounts points added
Financial Health Bill Negotiation
(during Beta test)
Experian Boost
Provide consumers with capabilities Help consumers eliminate costs Improve credit scores instantly – now
to build their financial profile and and save money by negotiating utilizing streaming service accounts
manage their financial lives bills on their behalf.
10 © ExperianOur marketplace is expanding, creating opportunities to help
consumers save money in a whole new way
MARKETPLACE 8:00 8:00 Auto Insurance Revenue
Lead Generation
+71%
H2 vs H1
FY21 H1 FY21 H2
Partner Response
“CreditMatch, in the span of
less than 3 months, have
become a T1 partner and are
getting attention and priority all
the way up to the CEO level”
~ Auto Insurance Partner
Lender Integrations Auto Insurance
Consumers benefit from pre-
Marketplace
approved offers generated through Better credit can save
integrated partner relationships consumers money in our
auto insurance marketplace
11 © ExperianWe have a clear path ahead of us, strong momentum and
substantial new opportunities which play to our advantage
Growth agenda is working - we are taking
We will be the share in core markets
pre-eminent
platform for Uniquely positioned to address macro trends
consumers to and evolving consumer needs
manage their
financial lives
Substantial franchise expansion opportunities
available to accelerate growth
12 © ExperianExperian Brazil Consumer Services Silvio Frison Vice President, Brazil Consumer Services
Credit Landscape in Brazil
Punitive interest rates and strict credit policies penalise the population.
Low credit penetration, due to limited competition, restricted to five major banks
Huge latent potential for collections and credit services
Household Credit/GDP Ratio (%) Serasa: Challenging the status quo
Data
75% 84%
30%
Local Brand
Brazil USA UK
Market
Defaulters in Brazil (2020) Position
62 million
Global IP
Positive Data
14 © Experian * Source: Bank for International Settlements (BIS), 2019 | Serasa Experian.Consumer Services Strategy: Credit for All
Our mission is to provide credit access to the entire Brazilian population regardless of their score
Consumer’s 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
15 © ExperianEngagement Strategy: Serasa “Free”
Serasa has connected with more than 1/3 of the Brazilian Population
Free Member Enrollments (millions)
+51%
37% of
Brazilian
45 59 adult
32 population
22
11
FY17 FY18 FY19 FY20 FY21
Brazilian Population (millions)
Total
Adult
Banked 212
157
112
16 © Experian * Source: IBGE, 2020.Collection Marketplace (Limpa Nome)
Limpa Nome solution is already the go-to solution for Brazilians to negotiate their debt and pay their bills
Limpa Nome: Partners Limpa Nome: Discounts Conceded (US$ billions)
+102%
53 +341%
34
13
FY19 FY20 FY21
Limpa Nome: Transactions (millions) 13
+299%
26
4
8
2 1
FY19 FY20 FY21 FY19 FY20 FY21
17 © Experian *Source: Team analysis | LNO came to ECS in FY19 | FY21 Fx rate: R$ 4.12.Serasa Score Turbo
Bills paid within our ecosystem boost consumers score.
Gamification strategy through bills payments
Real time financial education
It differs from USA Boost, which is based on behaviour
More deals
HIGHER CREDIT
RATING
BUREAU DEBT
Limpa
Nome
PAYMENT
NON-BUREAU DEBT
eWallet REGULAR BILLS
FINANCIAL
EDUCATION
More deals
18 © ExperianCredit Marketplace (eCred)
eCred completes the Serasa ecosystem (pay your bills, boost your score and get back to the credit market).
Brazil: 2020 Credit Market Size (US$) eCred: Confirmed Orders (millions)
+66%
$840 billion 3
5
2
FY19 FY20 FY21
eCred: Loans (US$ millions) eCred: Credit Cards (thousands)
+21%
+240%
44 1,594
33
23
138 362
FY19 FY20 FY21 FY19 FY20 FY21
19 © Experian * Market size source: Bacen/Febraban; Feb, 2020 | Source: Team analysis | eCred operation began in Sep/18 | FY21 Fx rate: R$ 4.12.Key Results
We are already the largest Brazilian fintech from an audience standpoint
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 App: Active Users
(millions) +31%
(millions)
20 +34%
8
16
6
12
FY19 FY20 FY21 Mar/20 Mar/21
20 © Experian *Source: Google Analytics; Similar Web; Team analysis | Organic Traffic: Direct access to the website | Financial Audience: searches on Google; nov 2020.What 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
21 © ExperianIn summary, very attractive prospects for our business
in Brazil
1 Strong position in the market
2 Winning strategy in place
3 Clear competitive advantages to address an evolving credit space
4 Good momentum enhanced by positive data
5 Plenty of opportunities in addition to positive data
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