Three Key Takeaways from TransUnion Annual Summit 2024
Global information and insights company TransUnion recently hosted its annual UK Summit on ‘Data-driven Decisions for Smarter Growth’. The event brought together leading companies from finance, banking, fintech, insurance and other sectors, to discuss the state of the industry and consumer financial health, including the growing impact of fraud and the importance of credit education and monitoring.
Sam Welch, Chief Revenue Officer at TransUnion in the UK, said: “Bringing together industry leaders through expert-led sessions and tailored breakouts for different sectors, this year’s UK Summit drove a lot of interesting discussions around industry challenges and the outlook for growth as well as empowering and educating consumers. By leveraging robust data to help inform smarter decisions for growth, we at TransUnion are helping to create a financial landscape that's transparent, inclusive and built on trust.”
TransUnion hosted a series of panel discussions, breakout sessions and invited industry leaders to discuss some of the most pressing topics in the current financial services sector. Three of the key takeaways from the event were:
1. Consumer optimism is bouncing back
The ongoing cost-of-living crisis remains front of mind for consumers even as inflation tapers-off. TransUnion’s Q3 2024 Consumer Pulse survey revealed that for 85% of consumers, inflation is one of their top three concerns over the next three months.
Yet, consumer sentiment has improved, driven by growing wages, particularly the National Minimum Wage. As attitudes to spending relax, 46% of consumers are optimistic about their household finances over the next twelve months.
As consumer optimism bounces back and the market becomes more competitive, lenders should foster deeper connections with existing customers by enhancing user experience and using consumer credit monitoring to help boost engagement.
2. Safeguard against potential fraud without compromising customer experience
Third-party fraud continues to be a major area of concern as consumers increasingly fall prey to sophisticated attacks. Over the last 12 months, 2.4 million fraud incidents involved a monetary loss,i with 56% of third-party fraud transactions sitting with Gen Z and Millennials.ii
Businesses face the delicate balancing act of stopping fraud in real-time while also making it as simple as possible for their customers to transact with them. Nearly three-quarters (74%) of consumers want to be confident that their personal data will not be compromised, while over half (56%) look for an easy log-in authentication process. By leveraging fraud analytics to identify suspicious behaviours using risk insights, device information and behavioural analytics, businesses can help stop fraud in real-time, without disrupting the user experience for legitimate customers.
3. Empower consumers through credit monitoring and education
Within the context of the cost-of-living crisis and growing fraud risk, financial awareness is key to strengthening consumer trust. 21 million consumers across the UK already monitor their credit report,iii with Gen Z and Millennials more likely to use credit monitoring than older generations.iv
Credit monitoring provides consumers with a clearer view of their overall financial picture, with nearly two in five (39%) credit monitors learning to manage their credit score, while 29% were able to secure better credit offers and one in five (20%) paid down debt.
With nearly two-thirds (64%) of consumers likely to use credit monitoring if offered at no cost, lenders have a prime opportunity to empower consumers with credit education tools that can drive financial inclusion while improving access to credit and help protect against fraud.
Commenting on the takeaways from the summit, James O’Donnell, director of research & consulting at TransUnion in the UK, noted that: “Our data reveals an increasingly positive picture of consumer financial health. Despite the challenging macro environment, the majority of consumers remain resilient, and are optimistic about the future of their personal finances. Much of this optimism is emerging on the back of lower inflation pressure and dropping interest rates. Ultimately, we’re getting a sense of relief from consumers and lenders alike.
“As we move into 2025, lenders now have the opportunity to foster deeper connections and service the unmet demand for credit which we’ve observed over the last two years. Though other pressures remain, with high consumer expectations for ease of use clashing with the need to protect consumers from increasing levels of third party fraud. By tapping into the right data at the right time, businesses can secure actionable insights and deliver friction right customer experiences that drive real impact.”
To learn more about TransUnion’s products and solutions visit the website
Notes:
i ONS, Crime in England and Wales, Statistical Bulletin, released 24 July 2024, for year ending March 2024
ii Cifas data, 2022-2023
iii TransUnion Consumer Credit Monitoring Population
iv TransUnion Consumer Credit Monitoring Report
