According to the official press release, this collaboration comes at a time when many Australians are grappling with rising cost-of-living pressures, which have had a notable impact on their ability to meet credit repayments. According to recent data from Experian, missed payments on home loans have reached the highest levels since March 2020, with 1.41% of all home loans in arrears.
Missed payments on credit cards (2.08%) and personal loans (5.8%) have also reached their highest points since April 2020. In the context of these economic challenges, Experian and Moneythor's partnership aims to provide banks and financial institutions with a range of personalised recommendations, insights, and prompts to assist customers in better managing their finances.
Notably, Experian will enrich clients' transaction data, which will then be utilised by Moneythor to generate accurate and extensive transaction insights in the Australian market. This development aims to support the creation of more personalised experiences for consumers and increase engagement for financial institutions.
Representatives from Moneythor brought up the importance of delivering personalised and contextual experiences to customers through a rich source of augmented data. They noted that partnering with Experian and leveraging their data enrichment capabilities enables them to deliver engaging customer experiences in real-time and at scale, aligning with their shared goal of offering value-added solutions to the Australian market efficiently.
Officials from Experian pointed out that banks currently face the challenge of connecting with customers experiencing financial stress. They mentioned that integrating financial well-being into digital products can foster meaningful engagement. They also highlighted the evolving landscape of Open Banking in the UK, where major banks introduced their own personal finance management (PFM) apps and personalisation features within digital products.
In October 2023, Experian launched its Experian Smart Money Digital Checking Account and Debit Card to identify eligible bill payments and increase credit scores.
Following this announcement, customers and clients of Experian gained the ability to use the company’s FICO Score-boosting feature and optimise their overall credit profile. They also received access to other benefits, such as a secure and efficient suite of tools that can be leveraged in one place.
In June 2023, Experian rolled out 4D Credit, which a suite of services aimed at helping lenders to better manage their commercial lending portfolio and support SMEs. As commercial lenders have access to Experian’s credit risk data and analytics capabilities all in one place, 4D Credit provides a ‘full picture’ view of affordability, growth, survivability, and risk by sourcing and analysing a range of relevant data sources.
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