Experian’s acquisition of Clarity Services brings financial inclusion to the

Costa Mesa, Calif., March 19, 2018 — Businesses of all types and sizes strive to make smarter credit lending decisions. As the leader in alternative credit data, Experian® — through its acquisition of Clarity Services — now has increased visibility on more than 62 million consumers who rely on small-dollar loans, point-of-sale financing and auto title loans. Lenders can gain a previously unavailable view of consumer loan and payment activity, spanning both mainstream and alternative financing, from the most comprehensive consumer credit insights in the industry, while providing financial access to more consumers.

Delivering on its commitment to help lenders reduce risk and be more inclusive to consumers, Experian is bringing its Clear Early Risk Score™ to market. This new score is designed to clear a wider path for more types of alternative credit data to be leveraged in lending and provides a unique view of how accounts are performing in the early stages of credit relationships.

To understand more about the market need surrounding this development, Clarity’s upcoming 2018 Subprime Lending Trends Report shows that installment loan sizes have increased by 17 percent since 2016, and nonprime consumers have shown improved stability over the last four years. These trends, along with the fact that approximately one-third of U.S. adults depend on alternative financing, underscore how important this segment is to our economy. Experian is invested in bringing new types of data into the risk evaluation process to help make a difference in our evolving society.

Clear Early Risk Score is designed to do just that — bring a deeper level of alternative data into focus with an unprecedented lens. The score was created using the largest and most comprehensive repository of positive and negative alternative financial services information available today, which gives lenders a view of financial behavior across the full U.S. lending spectrum. The score, which applies unique analytics leveraging both Experian’s national credit bureau and Clarity Services’ specialty credit bureau, predicts a consumer’s creditworthiness over a 12-month period. This expanded early risk insight for lenders can translate into improved access to credit for responsible borrowers.

“Our clients are constantly innovating when it comes to better understanding consumer financial behaviors. It’s at the heart of their business growth and customer relationships,” said Andrew Sheehan, general manager, Clarity Services, Experian. “This comprehensive score taps Experian’s proven credit bureau and analytical expertise, along with our newest alternative credit data, to deliver insights spanning both mainstream and nontraditional lending. Making this connection is a major step forward for Experian clients and consumers.”

Approximately 25 percent of U.S. consumers are considered “thin file” because they have fewer than five items in their traditional credit histories. These consumers often face significant obstacles to obtaining credit and have limited credit options. By adding the information from alternative credit data sources, these consumers may gain more access to credit. Being able to assess risk and extend loans confidently to borrowers with either thin or thick files is a unique benefit that will empower lenders and provide a complete picture of the consumer. Greater visibility and transparency around payment behaviors is a critical element in lending in a postrecession environment. Making the right decisions benefits not only the lender, but also the applicant.

“It’s our number one goal to improve credit access for millions of consumers. An increasing number of consumers in this country are relying on alternative finance products, and these individuals should be visible and able to build or rebuild credit with the positive payments they make,” said Alex Lintner, president, Experian Consumer Information Services. “This is another step forward in our strategy to expand reach and be more inclusive. We are committed to helping create a better path for these consumers to secure affordable credit and financial opportunities.”

To learn more about trends in alternative financial services and the increased consumer visibility alternative credit data offers to lenders, join Experian for a 60-minute webinar on March 20 at 10 a.m. Pacific time.

About Experian 
Experian is the world’s leading global information services company. During life’s big moments — from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.

We have more than 16,000 people operating across 37 countries and every day we’re investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.

Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.

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