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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Experian has agreed to acquire a majority stake in Brazil-based MOVA Sociedade de Empréstimo entre Pessoas S.A. (MOVA) for $7.89 million (R$40 million).
Experian will take a 51% stake in MOVA today, with the option to acquire the remainder of the company between 2026 and 2028.
Experian is interested in P2P lender MOVA because it has the potential to enable Experian to help Brazilian companies assess the creditworthiness of their SME clients.
Information services company Experian will acquire a 51% stake in Brazil-based MOVA Sociedade de Empréstimo entre Pessoas S.A. (MOVA) for $7.89 million (R$40 million).
Headquartered in Sao Paulo, Brazil, MOVA is a peer-to-peer lending platform that seeks to offer borrowers an alternative to traditional bank loans. The company also offers a range B2B tools, including a credit-assessment-as-a-service product to offer automate credit decisioning, a service to help companies register a credit request, anti-fraud tools, and more.
Experian’s interest in MOVA stems from this ability to help Brazilian companies assess the creditworthiness of their SME clients. “SMEs are underserved by affordable credit in Brazil and MOVA is tackling this issue,” Experian said in an announcement.
A full acquisition is still on the table. Experian has a call option to acquire the remaining 49% stake in MOVA between 2026 and 2028. In 2029, the deal reverts to a put option for MOVA.
Founded in 1980 and headquartered in Ireland, Experian offers a range of services for small businesses, including business credit reporting, marketing products and services, debt collection tools, and more. On the consumer-facing side, Experian offers credit reports and scores, identity theft protection, and a marketplace to compare credit card, loan, and insurance offers.
Zilch is partnering with Experian to update its Buy Now, Pay Later affordability criteria.
Experian and Zilch will share reporting of payment plan data, which will provide a more complete picture of consumer finances when applying for BNPL financing.
The collaboration comes as many observers have begun to worry about the potential hazards that BNPL could represent for consumers.
At a time of growing scrutiny over the Buy Now, Pay Later e-commerce craze, companies like Zilch are taking the extra step to ensure that consumers using its BNPL service are not getting over their heads when taking advantage of the latest consumer financing option.
This week, Zilch announced that it has partnered with Experian in a reciprocal credit data reporting collaboration that will offer a holistic, 360 degree view of a consumer’s affordability at a given point in time. The data exchange plan takes place under the auspices of the U.K.’s Credit Reporting Act (CRA), which manages rules regarding the supply of products, services, and digital content in the B2C sector. In a statement, Zilch noted that adding Experian’s reporting of payment plans, along with CRA and open banking data, and its own proprietary behavioral statistics, will enable the company to better assess the affordability of its two million customers.
“Zilch was built with financial health at its core, which is why we were one of the first BNPL to work with the FCCA to secure a consumer credit license,” Zilch co-founder and CEO Philip Belamant said. “Today, by partnering with Experian, we are continuing to transform the way affordability is assessed which is the key to us delivering financial inclusion to all.”
Consumers using Zilch pay 25% of their purchase upfront at checkout, then pay the rest of the balance for their purchase in three installments two, four, and six weeks later. Zero interest is charged, and Zilch offers a 2% cashback reward for consumers using Zilch who pay for their purchase in full on the first payment (“Pay in 1”). Rewards can be used to discount future purchases or saved to be spent later on a full purchase.
Zilch was founded in 2018. Last month, the company announced that it surpassed the two million customer milestone. A double unicorn with a valuation of more than $2 billion, London-based Zilch entered the U.S. market late last year and, shortly afterward, announced the launch of its gift card solution, Gift Cards by Zilch. The company has raised more than $339 million in funding, according to Crunchbase.
When it comes to financial inclusion, it’s easy for some people to turn a blind eye. However, when banks and fintechs help to solve gaps in the current environment, there’s more potential to boost everyone’s financial health.
Lloyd Pitchford, CFO at Experian, is working on promoting financial inclusion via Experian’s Environmental Social and Governance (ESG) program, which helps Experian improve its performance across ESG matters, including supporting financial inclusion and financial health.
We spoke to Pitchford about the program and his view of the current financial inclusion environment and how the industry should respond.
How have you seen financial inclusion awareness evolve into what it is today? What has prompted the increased awareness?
Lloyd Pitchford: The United Nations includes access to financial services, such as credit and microfinance, among its Sustainable Development Goals. Access to affordable credit opens the door to opportunities for people to transform their lives – from homes and healthcare to education and entrepreneurship. This has never been more important than it is today, following the global pandemic.
There are times in most of our lives where we can’t get access to the financial system in a way that we want, be it for a mortgage, a car, or a business loan. We’ve all experienced the frustration when you feel you’re on the outside of the system and you can’t do the things you want for yourself or your family. At Experian, it’s our job to change that. We want to make sure everybody is included and has access to fair and affordable financial products. Financial inclusion is fundamental to our business.
When it comes to financial inclusion, what are some of Experian’s offerings you are most proud of?
Pitchford: As the pandemic took hold in 2020, we stepped in with data and analytics to support governments, health services and national emergency response efforts. Our data and analytics helped them plan ahead and direct health care and financial support to the most vulnerable people through major initiatives such as COVID Radar in Brazil and Experian CORE (COVID Outlook & Response Evaluator) in the USA.
It soon became clear that the impact, not just on physical health, but on financial health, would be far-reaching for people around the world. We looked at how we could mobilize our expertise and resources to help communities through the crisis and focused on financial education as the best way to strengthen their resilience and support their road to recovery.
Through the launch of our United for Financial Health programm we rapidly established 11 NGO partnerships across our biggest consumer markets to deliver targeted financial education for some of the communities hit hardest by COVID-19. By the end of the year, we had reached nearly 35 million people, more than double our original goal of 15 million, and we’re not stopping there. We aim to reach 100 million people by 2024.
Part of our efforts include our member relationships around the world. This year, we surpassed the milestone of 100 million direct relationships with consumers globally and delivered further innovations to support people through our business, such as the launch of products like Experian Boost in the UK and Serasa Score Turbo in Brazil. This, of course, is on top of our ground-breaking Experian Boost launch in the United States a few years ago. Our goal is to have a direct relationship with as many people as possible; to truly become the Consumers’ Credit Bureau and power financial opportunities for all.
What advice would you give other incumbents who are trying to drive financial inclusion within their organizations?
Pitchford: I would point to our culture of innovation. It helps us harness opportunities to drive business growth. We are continually investing in product innovation and new sources of data to address emerging market opportunities that can make a real difference to global communities. In 2020, around 1,000 innovators from across Experian joined our annual Future of Information Conference – which was held virtually because of the pandemic – to encourage them to think differently in their work. Topics included fairness in artificial intelligence, transforming agribusiness, and enhancing the consumer healthcare experience. Teams at our DataLabs in Brazil, Singapore, the U.K. and the U.S.A. tap into our culture of innovation to continually create new solutions to global challenges. The result of all this is that our Social Innovation products have now reached 61 million people since 2013. We aim to reach 100 million by 2025.
What challenges exist in serving underbanked communities as an incumbent? Would it be easier as a startup?
Pitchford: Our annual Sustainable Business Report notes that more than a billion people in Asia Pacific lack access to formal financial services, 45 million in the U.S.A. have no credit profile or are unscoreable, 45 million in Brazil are unbanked, and over five million in the U.K. have no credit history. So we know we’ve got more work to do and we remain focused on using our business to make real and sustainable change. With social innovation running so deeply through the core of our culture, and our commitment to improving global financial health front and center of our thinking, we will continue to push to find new solutions to help people, serve communities and protect the environment, helping to create a better future for all.
After the world went digital last year, the digital identity crisis began taking on new life. Most fintech players are involved in digital identity in some way, and Experian is no exception.
We recently spoke with Eric Haller, Experian’s Executive Vice President and General Manager of Identity, Fraud & DataLabs, to get an idea of how digital identity is changing.
In the interview below, Haller offers his expert opinion and shares how enabling technologies such as AI and the blockchain are impacting how firms think about digital identity.
Digital identity has been on the radar of financial services firms since the dawn of online services. How has this past year of digital acceleration changed how firms approach digital identity?
Eric Haller: The pandemic has shifted segments of the population to the web that weren’t as engaged online as they were prior to the pandemic. For this segment, shopping “face to face” felt safer in many ways. But with a biological threat surfacing, the risks of shopping in the physical world traded places for online risks. All of a sudden, online services seemed much safer.
This plays out in our research where we saw a 20% increase in online shopping this past year with 43% of consumers believing they will even increase their online activity over the next year. And with this shift, 55% of consumers say security is their top priority in a digital experience.
Tell us about the role that AI plays in enhancing digital identity verification for banks.
Haller: To validate someone’s digital identity, literally hundreds of data elements are evaluated to assess whether an individual is a bot, an imposter or the person they claim to be. And all this data is collected, analyzed, and acted on in milliseconds. AI allows for these complicated links and behaviors to be tied together in a variety of ways quickly, efficiently, and accurately to assign the correct conclusion to each customer.
If everything goes well for a legitimate customer, the experience is smooth sailing and both the consumer and merchant conduct “fraud free” business. Most often, there is no fraud. It only happens a very small percentage of the time. But it’s important that if it is a bot or an imposter, that the models in place are precise.
The blockchain seems like a valuable enabling technology when it comes to proving identity. Is this an idea you’ve seen gain popularity? Or is it more of just a fad?
Haller: The portability of a trusted identity in a digital ecosystem integrated with a blockchain could serve a lot of value for consumers and businesses. But it requires quite a bit of effort to get both those that want to share their identity and those willing to invest in accepting it participating in it.
If there were a lot of businesses that would accept a particular blockchain based ID, consumers would put in the effort to have on and use it. If there were a lot of consumers with it, businesses would put in the effort to invest and accept it.
Which side grows with scale first? There are many chasing this ideal. I wouldn’t characterize it as a fad — just very ambitious and challenging to achieve.
AI marketing expert Micronotes recently launched a refinancing tool that will help consumers reorganize their debt, while enabling banks to lower their borrowing costs and boost customer retention.
The new tool builds on Micronotes’ ReFi solution it launched last June. The credit marketing automation suite enables banks to leverage AI to help their clients automatically identify refinancing opportunities for a range of consumer debt, including auto loans, personal loans, student loans, credit card debt, and mortgages.
With today’s advancement of ReFi, Micronotes is teaming up with Experian to leverage the firm’s database of consumer credit profiles. Experian will compare the bank’s current lending criteria to the consumer’s credit profile, and then synthetically refinance the customer’s existing debt held elsewhere while identifying other refinancing opportunities.
“We’re thrilled to partner with Experian to leverage artificial intelligence and data to help consumers lower their borrowing costs,” said Devon Kinkead, founder and CEO of Micronotes. “With an estimated $2 trillion in mispriced debt, during an era of persistently low interest rates, we help digital banking customers see where they’re overpaying interest that can be refinanced with a lender they know and trust — their primary financial institution.”
Micronotes’ personalization expertise comes in via the customer communication piece. The company will send the customer a message in the digital banking channel that informs them of the potential savings. Using Micronotes’ technology, the customer can respond to the message using preset, customizable quick-response buttons that range from “remind me later” to “chat with a banker.”
This quick-response messaging system is Micronotes’ bread and butter. The company was founded in 2008 to help financial institutions start conversations with their customers in a non-invasive way. At the company’s most recent Finovate appearance, FinovateSpring 2013, Micronotes showed off its cross-sell feature that uses predictive analytics to bring the branch sales process into the digital channel.
Headquartered in Boston, Massachusetts, Micronotes has raised $12.2 million.
Virgin Money announced today it has become the latest brand to join Experian’s pre-qualification platform.
The deal means that Virgin Money will now appear on Experian’s panel of lenders that are aggregated on lending websites and advisor platforms to help prospective borrowers check their eligibility and make informed decisions on their home purchase.
“Going through a lengthy mortgage application just to be turned down can be frustrating for everyone involved, not least the buyer who has found their dream home,” said Lisa Fretwell, Managing Director of Data Services, at Experian UK&I. “By checking eligibility at the beginning of the journey, potential customers can see which mortgages they are likely to be accepted for based on their financial circumstances, while at the same time avoiding damage to their credit score.”
Ultimately, Experian’s solution offers an automated decision based on credit history. If the system accepts the borrower, they will see details of the maximum amount they can borrow.
Borrowers can find Virgin Money’s mortgage products on pre-qualification platforms including Mortgage Gym, New Homes Group, Mojo Mortgages, Property Pal Mortgages and Iress Xplan Mortgage.
Experian offers a range of tools to help lenders make more informed decisions more efficiently in a way that safely leverages consumer data. Among these tools is Experian Lift, which the company launched last year. Experian Lift is a suite of credit score products that combines traditional credit, alternative credit, and trended data to provide a holistic picture of consumer creditworthiness.
Tools like these are especially useful in today’s economic environment, when uncertainty persists throughout many areas of consumers’ lives.
Just under a year after launching its Experian Boost credit solution, the global information services company is back with another resource – this time to increase the predictive power of its creditworthiness assessment technology. Experian Lift, announced last week and available to lenders early next year, combines traditional and alternative credit data with trended data assets to build a more complete picture of the consumer’s ability to repay their debts.
Experian Lift was developed in partnership with Experian’s advanced analytic research and development group, Experian DataLabs. The suite of credit score products uses advanced analytics to provide insights into consumer behavior over the most recent 24-month period. The technology leverages alternative data – such as alternative financing information, rental data, and public record information – to provide lenders with a FCRA-regulated analysis of a customer’s creditworthiness. The company noted that Experian Lift improves predictive performance by 23% compared to other scores used to provide underwriting to what it called “credit invisibles.”
Experian Consumer Information Services EVP and Chief Product Officer Greg Wright put Experian Lift in the context of the company’s overall efforts to help creditworthy consumers get the financing they need. “Through Experian Boost, we’re empowering consumers to play an active role in building their credit histories. And, with Experian Lift, we’re empowering lenders to identify consumers who may otherwise be excluded from the traditional credit ecosystem.”
Experian Boost helps consumers increase their FICO scores by allowing Experian to include their positive telecom and utility payment history in its credit analysis. The company said the tool is especially helpful for consumers with thin credit files and credit scores between 580 and 670.
“We are committed to financial inclusion, and Experian Boost is the latest example of our efforts to increase consumer awareness of credit’s impact and value while giving them greater control,” Experian Global CEO Brian Cassin said when the solution was unveiled last December.
Experian demonstrated its cloud-based credit decisioning technology at FinovateFall 2018. The company, founded in 1996 and maintaining headquarters in Dublin, Ireland; Costa Mesa, California; and Nottingham, England, has been active on the international front of late in particular. Experian acquired leading Peruvian credit bureau Sentinel Peru, provided Open Banking solutions to U.K. fintech solution provider incuto, and announced a strategic investment in Indian smart data platform Vserv – all this month.
Experian has a workforce of more than 17,000 across 44 countries and reported fiscal 2019 revenues of $4.9 billion. A member of the FTSE Top 35, Experian is considered one of the top three credit reporting entities along with TransUnion and Equifax.
Avaloqcompletes acquisition of Derivative Partners.
TransferWise to offer $150,000 in prize money to Singaporean bank customers to help them defray the cost of hidden fees charged by their banks.
DefenseStormcompletes (SOC)2 Type II Audit examination for its security data platform.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Experianlaunches a new Open Data solution: Experian Commercial Acumen.
Mambu’s composable banking solution to help new SME bank Recognise enhance the customer experience.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
Transferwisegoes live with new debit cad for customers in Australia and New Zealand.
Finastrainks cloud banking deal with U.K. neo bank Gravity.
Argentina’s largest national private bank Banco Galicia integrates PFM technology from Strands.
Overbond to open three AI analytics labs in Montreal, Quebec, Canada to support R&D in bond pricing.
Vymohires Rajesh Sabhlok as its new Chief Customer Officer, with an emphasis on Japan and APAC.
BlueRushannounces strategic partnership with InfoSlips.
Artivestnames Martin Bealieu, formerly executive chairman, as new CEO.
Lendio’s marketplace lending franchise program tops $50 million in loans facilitated via its platform.
Ignite Salesunveils the latest version of its customer engagement platform, Ignite Neuro 2.0.
Salt Edgeincreases the total number of connected banks in the E.U. to more than 300.
Experianunveils new configurations of its Ascend Analytical Sandbox.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Asia-Pacific
CompareAsiaGroup picks up $20 million in Series B1 funding in round led by Experian.
Standard Chartered Bank’s eXcelerator innovation lab goes live in Shanghai.
Finish fintech PearlPay announces partnership with the Philippines’ Rural Bank.
Sub-Saharan Africa
Ghana’s Vice President Dr. Mahamudu Bawumia declares his country to be “the undisputed leader in Africa” in terms of innovation in payment services.
Oromia International Bank of Ethiopia goes live with core banking software from ICS Financial Systems.
Fintech Futures examines the challenger bank scene in South Africa.
Central and Eastern Europe
Piotr Jan Pietrzak of ING Bank Slaski looks at the fintech scene in Poland.
Romania open banking solution provider Finqware raises €180,000 in seed funding.
Poland introduces $737 million co-investment plan to attract private equity firms.
Middle East and Northern Africa
Bahrain-based cryptocurrency exchange Rain earns its license from the nation’s central bank, and announces a fundraising of $2.5 million.
Egypt’s MoneyFellows raises more than $1 million in pre Series A funding.
African payment gateway Innovate 1 Pay opens office in Dubai.
Central and Southern Asia
Indian SME lender Indifi raises $21 million in Series C funding.
Mashreq Global Services, a subsidiary of Mashreq Bank, teams up with Indian fintechs.
India’s biggest mobile payments company Paytm now boasts 10 million customers in Japan.
Latin America and the Caribbean
Brazil’s Nubank raises $400 million in funding in round led by TCV.
Argentina’s largest national private bank Banco Galicia integrates PFM technology from Strands.
InCommpartners with LA Metro to expand locations where customers can purchase and reload TAP cards.
Jack Henry & Associatesnamed one of the best places to work in Alabama by Business Alabama.
Bpm’online CEO and Managing Partner Katherine Kostereva recognized in The Software Report’s Top 50 SaaS CEOs of 2019 feature.
This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.
