LAS VEGAS--(BUSINESS WIRE)--With fraud continuing to emerge as a growing operational challenge for the automotive industry, new research from Experian, a global data and technology leader, reveals how significant fraud is becoming. Based on a survey of automotive dealers, nearly nine-in-10 are concerned about fraud. The findings also show 70% of dealers believe fraudulent transactions are on the rise, signaling upward momentum. While income-related fraud schemes are the most common, identity-related fraud h ...

Market Overview - The UK stock market's benchmark index FTSE 100 recovered after a weak start, with gains in financials and consumer sectors offsetting weakness in mining and energy stocks [1] - A sell-off in precious metals and oil led to declines in mining and energy stocks, with gold and silver prices dropping 4% and 11% respectively, and oil futures sliding 1.1% [1] Financial Sector Performance - Lloyds Banking Group advanced 2.3% after launching a share buyback program to repurchase up to £1.75 billion of its ordinary shares [2] - Barclays, Natwest Group, and Standard Chartered saw increases of 1.5%-2.2%, while HSBC Holdings gained nearly 1% [2] Other Notable Stock Movements - Experian gained about 3.6%, while Smith & Nephew and Diageo climbed 2.5% and 2.4% respectively [3] - Companies such as IAG, Pearson, Reckitt Benckiser, and others gained between 0.8% to 2% [4] - Conversely, Fresnillo, Endeavour Mining, and Antofagasta lost 3.2%-4%, with Anglo American Plc sliding 2.3% and Glencore shedding about 1.7% [4] Consumer and Business Borrowing - A report from the Bank of England indicated that net mortgage approvals for house purchases in the UK fell by 3,100 to 61,013 in December, marking the lowest level since June 2024 [5] - Consumer credit decreased to £1.5 billion in December from £2.1 billion in November, although the annual growth in consumer credit remained unchanged at 8.2% [5] - UK businesses borrowed £1.0 billion from banks and building societies, following net borrowing of £6.2 billion in November [6]

Core Insights - Upstart Holdings has faced a challenging four years, with stock performance stagnating since its peak in late 2021, despite a return to growth in 2023 [1][2] - The company utilizes an AI algorithm that assesses over 2,500 variables to evaluate creditworthiness, resulting in 43% more loan approvals without additional defaults compared to traditional methods [4][3] - Upstart's revenue increased nearly 80% year-over-year through the first three quarters of 2025, indicating a positive trajectory moving forward [5] Company Overview - Upstart is a unique lending platform that differentiates itself from traditional credit scoring agencies like Equifax, Experian, and TransUnion by employing advanced AI technology [3] - The platform has gained traction, with over 100 banks and credit unions as regular customers [5] Financial Performance - Despite a recent downturn in loan originations due to economic headwinds, analysts project a per-share profit of $2.38 for the current year, with the stock trading at less than 20 times this figure, suggesting it is undervalued [9][6] - The company's gross margin stands at an impressive 97.61%, reflecting strong operational efficiency [7] Market Sentiment - The stock has not reacted positively to recent warnings about economic challenges affecting loan origination, leading to market panic [6] - Analysts expect that as the year progresses, investors will recognize the company's actual profit potential, which has been understated in recent earnings reports [9]

Experian shares have fallen to a two-year low as investors bet that one of analysts’ favorite FTSE 100 stocks will suffer as artificial intelligence automates credit scoring. https://t.co/hKxDSYAew1 ...

It's very easy to have decision paralysis in the AI space because there's so many different factors to consider. We chose Llama Index because it had a lighter footprint for orchestration over other solutions and has a reasonably strong backing from the community. This is very important in enterprise settings when you want support for your libraries.My name is James Lynn and I'm the head of AIM ML innovation for Experian Consumer Services. My role is focused on building JI products that we bring to productio ...

Core Insights - Experian reported a strong performance in Q3 with total revenue increasing by 12% at actual exchange rates and 10% in constant currency, while organic revenue grew by 8% [5][6] - The company maintained its full-year guidance, indicating continued momentum in North America and a target of 30-50 basis points of margin progression for the year [6][17] Revenue Growth - In B2B financial services (excluding mortgage), organic revenue growth was 9%, up from 8% in Q2, driven by key client wins and new product adoption [1] - North America achieved 10% organic revenue growth overall, with B2B growing by 11% and consumer services by 8% [2] - By region, organic revenue growth was reported as 10% in North America, 6% in Latin America, 3% in the U.K. and Ireland, and 3% in EMEA and Asia Pacific [3] Segment Performance - Global B2B organic revenue grew by 7%, while global consumer services rose by 10% [3] - In North America, consumer services rose by 8%, primarily driven by marketplace growth across credit cards, personal loans, and insurance [9] Acquisitions and Market Dynamics - Acquisitions contributed 2% to growth in Q3, with mortgage revenue increasing by 45% due to pricing benefits [4][6] - The integration of ClearSale is progressing well, supporting new business opportunities, while fraud and identity offerings performed strongly [12] Regional Insights - In Latin America, consumer services surged by 23%, although B2B remained flat due to high interest rates and consumer indebtedness impacting lending activity [11] - The U.K. and Ireland saw organic revenue growth of 3%, with consumer services up 14%, supported by the Ascend platform [14] Future Outlook - Management expressed optimism about improving trends and an uptick in the pipeline, suggesting potential revenue growth in the coming quarters [14] - A fuller update on profitability is expected at year-end results, with guidance for margin progression remaining intact [17]

Core Insights - Experian's analysis reveals that Credit Builders Alliance (CBA) tradelines significantly aid credit-challenged consumers in improving their financial status and accessing mainstream credit products [1][2]. Group 1: Impact of CBA Tradelines - 70% of previously unscored borrowers with a CBA tradeline achieved prime or near-prime credit status within one year, compared to 48% of unscored U.S. borrowers [2]. - Consumers starting from deep subprime credit tiers who had a CBA tradeline experienced an average credit score increase of 48 points within a year [2]. Group 2: Profile of CBA Clients - Clients served by CBA member organizations have a lower average VantageScore of 658 compared to 724 for the general U.S. population, higher credit utilization rates of 75% versus 67%, and greater debt-to-income ratios of 33% compared to 19% [4]. - This demographic represents a more financially vulnerable population, highlighting the need for targeted financial support [4]. Group 3: Role of Nonprofit Lenders - Nonprofit and mission-driven lenders, including community development financial institutions (CDFIs), are instrumental in helping consumers overcome systemic barriers through responsible lending, financial coaching, and education [5]. - These programs enable consumers to build savings and gain access to mainstream credit products, thereby unlocking financial opportunities [5]. Group 4: Commitment to Inclusive Credit Reporting - The analysis underscores the importance of inclusive credit reporting and the positive impact organizations like CBA have on improving the financial lives of underserved consumers [6]. - Experian is dedicated to expanding access to credit for historically excluded populations, reinforcing its commitment to financial empowerment [6].

So, how bad is the credit crunch in the U.S., and would a 10% cap on interest rates help or harm American consumers?Unsurprisingly, financial institutions also have no interest, so to speak, in a 10% cap (5), with a group of major banking associations and organizations releasing a joint statement claiming the move would “reduce credit availability and be devastating for millions of American families and small businesses,” driving many “toward less regulated, more costly alternatives.”But it’s unclear how mu ...

Summary of Root (NasdaqGS:ROOT) FY Conference Call - January 12, 2026 Company Overview - **Company Name**: Root - **Founded**: 2015 - **Public Listing**: 2020 - **Industry**: Insurtech (Insurance Technology) - **Core Business**: Car insurance based on driver behaviors using mobile technology and data science - **Market Position**: Largest insurtech in the U.S. with strong underwriting records [1] Key Points and Arguments Business Model and Growth - Root leverages mobile technology and data science to offer personalized insurance rates based on driver behavior rather than demographics [1][5] - 50% of Root's business comes from direct sales, with additional revenue from embedded products (e.g., Carvana Insurance) and independent agents [6][7] - The company has reached profitability and emphasizes creating better customer experiences through technology [7] Distribution Channels - **Direct Channel**: Grew by 100% in 2023 due to competitors pulling back on advertising; Root uses advanced bidding algorithms to target customers effectively [10][11] - **Embedded Channel**: Experiencing rapid growth, with a partnership with Hyundai to integrate insurance into vehicle purchase processes [11][34] - **Independent Agents**: Fastest-growing segment, tripling year-over-year; Root's technology simplifies the insurance quoting process for agents [12][18] Competitive Advantages - Root's technology allows for real-time pricing adjustments and efficient data processing, significantly reducing the time agents spend on quotes [20][18] - The company can update pricing models more frequently than competitors, enhancing its ability to respond to market changes [23][36] - Root's closed-loop system and modern API infrastructure provide a significant edge over traditional insurers still using outdated systems [24][25] Market Opportunities - The U.S. auto insurance market is valued at $300 billion, with Root currently holding less than 1% market share, indicating substantial growth potential [41] - Root plans to expand its partnerships with OEMs and financial services companies to further penetrate the market [40][41] Strategic Focus - Root prioritizes disciplined growth over short-term earnings targets, ensuring that new business ventures meet internal return thresholds [15][39] - The company aims to enhance its technology for daily pricing updates and expand its national footprint, having recently gained approval in New Jersey [36][41] Future Outlook - Continued investment in technology and partnerships is expected to drive growth, with a focus on improving customer experience and operational efficiency [34][41] - Root anticipates further market share gains as it scales its operations and enhances its product offerings [41][42] Additional Important Insights - Root's approach to AI is not limited to chatbots; it utilizes advanced predictive algorithms for underwriting and risk assessment [30][32] - The company is exploring new marketing channels, including connected TV and social media, to enhance brand visibility and customer acquisition [35] This summary encapsulates the key insights from the conference call, highlighting Root's innovative approach to the insurance market, its growth strategies, and the competitive advantages it holds in the insurtech space.

Industry Overview - The Zacks Business – Information Services industry is experiencing increased demand for services that ensure risk mitigation, cost reduction, and productivity improvement due to the work-from-home trend [1] - Companies in this industry are focusing on technology, digital transformation, and data-driven decision-making to identify demand sources and target end markets [2] Current Trends - The industry is witnessing a healthy demand environment, with revenues, income, and operating cash expected to grow during the post-pandemic economic recovery [3] - There is a significant increase in demand for customer-centric solutions, driven by the pandemic, leading companies to modify their business strategies [4] - The adoption of digital transformation, automation, and big data is anticipated to fuel industry growth, with a shift from conventional data solutions to more specialized services [5] Industry Performance - The Zacks Business – Information Services industry holds a Zacks Industry Rank of 109, placing it in the top 45% of 244 Zacks industries, indicating encouraging near-term prospects [6] - Over the past year, the industry has underperformed compared to the S&P 500 Composite, declining by 22% while the S&P 500 rallied by 19.5% [8] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.8X, lower than the S&P 500's 23.36X and the sector's 20.97X [11] Company Highlights - **Experian**: Achieved 12% total revenue growth at constant currency, including 8% organic revenue growth, demonstrating resilience and strong execution of strategic priorities [15][16] - **Intertek**: Scaling up its portfolio in high-growth sectors through acquisitions, benefiting from a favorable revenue mix and productivity enhancements [18][19]