Data can drive social change and financial inclusion

Businesses can leverage technology to make people’s lives better in ways that span far beyond convenience. Given the global evolutions we currently face, I believe we have a responsibility to do so.

All my life, I’ve been fascinated by the power of technology to solve problems. I’ve witnessed how industries have disrupted and reinvented themselves, forging new capabilities to meet old and new challenges. Today, I’m more convinced than ever that technology and data can be used for social good.

More and more, industries are realizing the untapped potential of real-time data. In fact, when it comes to pivotal moments – like financing your education or purchasing your first home – data about your financial status and history can make all the difference. What’s often overlooked is the role that technology has in delivering that data seamlessly. 

This is a cause close to my heart. By embracing technology to broaden the reach of the data we collect at Equifax, we are helping to drive greater financial inclusion – and witnessing the impacts on individuals and communities.

‍The power of decision making‍

More data helps people to make better decisions, with even greater confidence. For financial services companies like ours, decision making is everything: we gather a variety of data points that ultimately help people meet their wants and their needs. Being stewards of that data is a role that we take very seriously.

Today, we can use advanced, cloud-based technologies to augment our customers’ decision making. This is only possible by opening the aperture to consider new and alternative data types. And it’s not just about volume: technology has advanced to a point that we can unlock new ways to link together data for a positive social impact.

Equifax research has shown that alternative data assets - Fair Credit Reporting Act (FCRA) compliant information that is not included in traditional credit report data -  have the potential to make 21% of credit thin or credit invisible consumers scorable. This can create a ripple effect. Every time one more person gains access to credit, the impact can extend to create opportunities in their community.

This has the potential to transform the social fabric of our societies. As a natural-born problem solver, it’s what gets me out of bed in the morning.

‍Expanding access to credit‍

For context, Equifax research shows that 92 million US consumers have little-to-no credit history. That's a huge portion of the population that may be challenged to access modern fundamentals – like a home, higher education or a car. And with “thin” or no traditional credit history to their name, these individuals could face an uphill battle to change the financial trajectory for their family, which can have an impact for generations to come.

We have to continue to evolve to widen access to the mainstream financial system. In my current remit, that means raising the bar with data to develop a more nuanced picture. The clearer the picture, the more likely people will get credit for the responsible decisions they make every day that count positively toward their risk profile – like on-time mobile phone or rental payments.

In fact, Equifax is now the first in our industry to make telco, utility and pay TV attributes available alongside traditional mortgage credit reports to provide mortgage lenders with a fuller picture of consumers’ financial profiles. This potentially enables more than 191 million American consumers, 80% of whom have traditional credit files but may benefit from additional insights into their financial profile, to have greater opportunities for homeownership. 

To expand our impact, we add new businesses as contributors to our data exchange model every day. More data, integrated in real time, gives providers greater confidence and can benefit more individuals.

It’s all underpinned by our company’s purpose of helping people live their financial best. And it’s just the start.

‍Decision intelligence‍

Those who are not familiar with everything we do describe Equifax as a credit bureau. It would be more accurate to say we are a decision intelligence company: fundamentally, we provide insights to help people and businesses make smarter decisions.

We’re harnessing alternative data sets to do more than enable lenders to extend credit or loans. For example, we leverage unique data assets to help government agencies verify people’s need to receive vital social service benefits. For retailers, we help verify shoppers’ identities to detect potential fraud faster. We also help victims of violent crimes by providing access to up-to-the-minute incarceration data about their perpetrators. All these services have a tremendously positive impact on society.

Of course, we couldn’t do any of this without advanced artificial intelligence. We believe that AI should follow a few core principles: it should be explainable, fair and sound for business use. AI is fundamental to innovation within financial services and to advancing our pace of social change. It augments and supports the efforts of data scientists who build the AI models, and we shouldn’t fear it. We should feed it. The more data we bring in, and the more accurate and timely that data is, the more decisions we can make to benefit consumers and communities. That, to me, is the point of innovation.

I encourage all businesses – no matter the industry – to make a bold move away from legacy systems in order to take advantage of new capabilities. If you are not actively transforming and modernizing, you could be missing opportunities to tap into your organization’s power for good. And, in my opinion, hybrid cloud should only be an interim state, not an end state – and lifting and shifting is rarely a good idea.

‍Data-driven inclusion ‍

As leaders, we hold a position of power and great responsibility. It’s up to us to continuously gain consumers’ trust by demonstrating how our technology can drive a positive social impact. Businesses have more data in their trust than was ever before possible. By putting that data to use in an open, transparent way, I’m proud that Equifax is helping to move communities forward. 

At Equifax, our company’s purpose of helping people live their financial best serves as a driving force for innovation. And my call to action to leaders across sectors is to maximize the difference you can make with the assets at your fingertips. With advanced technology in your hands, what good could your business achieve?