UK lenders seek more data as consumers rush, says Experian

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  • Says customers use data to adjust lending criteria
  • Retains full-year outlook, posts higher profit
  • Shares rise 2%

November 16 (Reuters) – British lenders are seeking more data on the finances of potential and existing customers as squeezing the cost of living increases the risk that borrowers will struggle with their debts, the data firm said on Wednesday on the Experian credit (EXPN.L). .

Experian’s primary customers are banks, alternative lenders and insurers, who use its credit reports and scores to analyze and make decisions about credit risk, fraud prevention and loan terms.

The company said UK lenders were now generally focusing more on risk-based analysis and adjusting their measures to take on new customers, and some customers in North America, its biggest market, were also tightening their lending criteria. .

“What we’re seeing our customers in the UK doing is they’re coming to us more for a vulnerability assessment, an accessibility assessment and they’re looking to help consumers with forbearance packages” , communications director Nadia Ridout-Jamieson told Reuters.

Data on Wednesday showed UK inflation hit a 41-year high in October, while figures from last month showed UK consumer lending rose less than expected in September, suggesting lenders and borrowers become more cautious.

Ridout-Jamieson said Experian has won more customers overall and in the energy and utilities sectors, and the company said customers in those industries are now looking for data on the impact of energy price increases on households.

Experian maintained its full-year outlook, despite tougher economic conditions ahead, pushing its shares up around 2% at 0915 GMT.

“We are very confident that the investments we are making will support our medium-term growth prospects,” chief executive Brian Cassin said in a statement.

The company’s baseline total operating profit rose 8% to $873 million for the six months ended September 30.

Reporting by Pushkala Aripaka and Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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