How Big Data

Can Lead to
Bigger ROI
with the Ascend
Analytical Sandbox

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 Agenda

I. Introductions
II. Industry Trends
III. What is Sandbox
IV. Demo
V. Client Experience

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 Introductions

Reshma Peck
Senior Vice President, Experian

Wayne Glinski
Product Manager, Experian

Ryland Ely
Modeler, OneMain Financial

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 The Pace of Change is Increasing Cost and
Complexity at Astonishing Rates

Digital World Data Security Regulations

52% of smartphone owners are Synthetic identity fraud accounts A large bank estimated their cost
conducting banking on mobile for approximately 20% of credit of regulatory programs and
devices charge-offs and 80% of credit card compliance will reach nearly $3.3
fraud losses billion in 2017

Big Data Consumer Demands Efficiency

More than 90% of data in the 36% of customers are interacting 89% of consumers say they have
world has been generated in just with a single business using stopped doing business with a
the past five years five or more channels company after a single poor
customer experience

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 Experian’s Approach to Innovation

Modern Technology Agile Development Innovation

Stack Process Framework

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 What is the Experian Analytical Sandbox?
What is it?
Big data analytical solution with immediate
access to archived credit data in a securely
hosted, user-friendly environment:
• Monthly snapshots
• Familiar analytics tools (SAS,
R Studio, Hue, Tableau)
• FCRA non-regulated data
• Scalable Hadoop cluster processing
• Additional Capabilities on the
near-term roadmap (Python)
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What makes it different?
• True historical 100% national full file or
10% national file options
- Includes opt-outs
- Includes trade line data
- Includes access to Experian scores
and attributes
• 17+ years of monthly history!
• Client customer and trade keys
for sample
• Anonymization service for linking data
• Low entry price and scalable for growth
• Business Data and Household Share of
Garage
 Architectural Overview

CLIENT SIDE EXPERIAN ENVIRONMENT

Hadoop Cluster:
• 33 Nodes • 640 compute cores
• 490TB storage • 3.75TB memory

Citrix Desktop Data Assets:

Trade Data
Inquiry Data
Collections Data
Public Records
Scores
Experian Attributes

Loaded Client Data

Citrix Gateway
(www.easandbox.com)

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 Analytical Sandbox
Case studies & Demo

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Application Reject
Inferencing
 Bureau-based inferencing
Data availability – cross lifecycle use cases

Where did my… Non-responders go?

Approved not
Attritors go?
booked go?

Declined customers go?

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 Rejects Opt-Outs

Where are our

Potential Score potential
Expansion customers
Opportunity going for
credit?

What is the size of the opportunity? What terms

are they
looking for?

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 Card Benchmarking

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Portfolio Snapshot Score Distribution
• Assess the credit quality of your
portfolio
Generational Make-up
• See what generational
age groups comprise the
largest part of your
portfolio

Geographical Make-up
• Where are your customers
located?

Attribute Benchmarking
• How do your customers compare to your industry peers?
• How are they trending comparatively?
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Delinquency Snapshot
Geographical
• Where are your biggest
issues?

Trended View
• Is it getting better or
worse?

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Market Share

Geographic Market Share

• Understand which states are above your
national average and which areas are below
• Potential regional marketing opportunities

Market Share Trend Generational Market Share

• Are you growing Accounts? Balances? • Many clients see Millennials as an emerging
Both? market – understand your generational
positioning today and track marketing efforts

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Personal Loan Market
Entry/Expansion

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 Volume Mixes
• Drill-down capability for
targeted analysis

Volume Distribution
• Understand volume, bad rates,
originations and payoff rates by Vantage
score range

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 Delinquency Threshold
• Toggle between 30, 60, and 90+ rates for
Collections analysis

Delinquency by Segments
• Generation
• Vantage Range
• State

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 Zip-Code Comparison
• Compare target areas to the
state or US as a whole

Zip-Code Granularity
• Drill down to specific zip codes to
understand where the greatest
opportunities might be

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New Property Data Uses

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 Auto “Stickiness” Scenario

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Auto Loan Penetration
Tracks Auto originations over a 2 year period for consumers
within a lender’s full account base to illustrate “stickiness”.
Tabular Statistics for Loan
Amount, Term and
Geographic drill-down delinquency rate

Generational Data

Kind of Business Codes for

“off-us” loans

By Loan Amount
Over Time

By Vantage Range Distribution

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Delivering value to OneMain Financial
Experian Sandbox is not just an analytics tool
“Analytics” is often used to mean “reporting”, but we can build models on Sandbox too:
o Marketing models: targeting, see whether direct mail customers took out loans from other lenders
o Underwriting: feature exploration, trended data
o Market share: segment by KOB, product type, credit score
o Pricing: payment vs loan amount
o Vintage curves/loss rates: how do they compare to the market?
o Reject inference: explore different RI logic
o How to underwrite thin files?
o Test model stability over time/over different populations
o Loan amount model: predict what the customer would get in the marketplace

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Delivering value to OneMain Financial
Environment is easy to use

• Windows environment through Citrix

• Move files in and out through “FTDM” interface
• Most members in our group use RStudio or SAS
o (In R, you can “cheat” a bit for performance with, say, RCpp or RJava)
• Backend queries use Hadoop, but users need only know Hive SQL
o Fast execution given the size of the data

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Delivering value to OneMain Financial
Main selling points (IMO)

• Data volume and speed of access

• Trade-level data that goes beyond the Premier variables
• 15 or so years of history with monthly payment data
• Experian provided a data dictionary that does a good job describing the fields
• Data is well organized
o Consistent naming/format
o Relatively simple schema with not too many tables

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 More info:
www.experian.com/ascend

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