How much do we know about our tenants? - …s3-eu-west-1.amazonaws.com/doc.housing.org.uk/...to...
Transcript of How much do we know about our tenants? - …s3-eu-west-1.amazonaws.com/doc.housing.org.uk/...to...
© 2010 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited.
Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work
may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Limited.
How much do we know about our tenants? Jon Rayfield, Client Director - Local and Regional Government, Experian
Mobile 07885 675215
© 2010 Experian Limited. All rights reserved.
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Experian Services
Experian specialise in the provision of information (and software) around five main services:
● Rental Exchange (Bii) – an appeal!
● Tenant (customer) insight
● Prioritising Collection efforts
● Fraud services
● Procurement
Experian data is used to focus attention and recognise the differences in your tenant base. Tenants ARE NOT ALL THE SAME
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Rent arrears increasing –
payment direct to head of
household
8.5 million rented properties
4.8 million SOCIAL
3.7 million PRIVATE
RENTAL EXCHANGE applies to
both SOCIAL and PRIVATE
tenants
FINANCIAL INCLUSION is THE biggest tenant
benefit from Rental Exchange
3 fifths (2.2m) private renters &
1 fifth (763k) social renters
expect to buy property in near
future
37% social renters & 12%
private renters expected to
buy current homes
Tenant “footprint” is often thin
Families increasingly using pay day
loans (PDLs) & Short Term lending
to cover rent . AFFORDABILITY ?
Rental Exchange – background factors
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Good rental payment history will
enhance an individuals credit score
Tenant benefits
Enhance Credit Prove
residency Increase tenancy
stability Reduce moving
costs
Tenant Rental
Exchange Website
Pro
po
siti
on
So
luti
on
H
ow
The Rental Exchange will confirm
the renters name & address
Businesses can now access
previously unavailable rent payment
data to offer good payers
favourable credit
Demonstrating a good rent payment
history will give tenants a better
chance of securing tenure with a
prospective landlord
Increased tenure will mean tenants
will have to move less saving them
time and money
Tenants demonstrating a good
payment history will lead to landlords
wanting to keep the tenant & not lose
them increasing stability
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Housing Association benefits
Accurate
affordability
assessments
Improve collections
through data
sharing
Reduce Voids &
illegal subletting Demonstrate
Corporate social
responsibility
Pro
po
siti
on
So
luti
on
H
ow
File submission data
sharing with Experian
Through the Rental Exchange
HA’s can help tenants with access
to credit, fuel poverty, ID
identification & Universal Credit
HA’s can help flag where there are
issues like fuel poverty or tenant are
in difficulty in paying back credit
through understanding outgoings
Rental data can enhance existing
collections processes by sharing
where a tenant has moved, making
it easier to collect
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Rental Exchange
Please consider inputting your data into this scheme, as ALL HA’s piloting the scheme
are big advocates of it, and around 60 HA’s are in the process of joining this data
sharing programme
It does require tenant consent (tenant agreement or permission that their data can be
used in this way)
Tenant benefits are thicker “footprints” which would equate to cheaper credit. (There
are many other benefits)
Housing Association benefits are greater access to accurate information on which
decisions can be taken.
Experian contact: [email protected] - mobile 07970 214463
Big Issue contact Sarah Forster – mobile 0771 423 4823
www.bigissueinvest.com <http://www.bigissueinvest.com/>
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Housing Associations with whom Experian work
Richmond Housing Partnership
Aster Communities
Eastend Homes
Gentoo
Helena Homes
Sanctuary Housing
Circle
A2 Dominion
First Wessex
West Country Housing Association
Radian Housing...
So we work with many HA’s – but relationships are quite new – as this
sector has not historically needed Experian services.
This is changing now
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Experian data – what we know
Demographics
•Age
•Ethnic Origin
•Length of residency
•Head of Household
•Lone Parent
•Presence of elderly parent
•Presence of young person
•Households with children
•Number of children
•Age of children
•Number of adults in household
Financial Details •Personal income
•Household Income
•Outstanding Mortgage
•Directorships
•Employment Status
•Financial Stress
•Personal Debt
•Small or Home Office
Property details •Property Age
•Residence Type
•Number of Bedrooms
•Tenure
•Property Value
•Property Coordinates
•Gas / Electricity Consumption
•Water consumption
•C02 Emissions Poverty / Vulnerability Variable •Fuel Poverty
•Household Poverty Risk
•Immediate household poverty risk
•Income less than 60% median for England
•Likelihood of household to be receiving benefits
•Short to medium term poverty
•Long term unemployment
•Likelihood of households to contain dependent children
and no employment
•Likelihood of household not to have a car
•Educational Attainment
Possible Experian Person or Household Variables – up to 200 other options available.
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Experian data – what we know, and typical applications
Future Tenants - Individual financial / credit profile (How financially stable is this future tenant, consider safeguards Identification check/ (Is this person who they say they are, does their history profile match Experian’s) Financial risk profiling (potential to fall into arrears), Demographic segmentation (what type of person is applying to become a tenant) Current Tenants - Financial Vulnerability and Stress Indicators (utilising Experian’s vast consumer data base we can assess an individual’s financial profile) Social housing tenancy fraud / verification - who is living in your properties Risk profiling (Experian can risk assess and rank individuals based on their potential to fall into arrears) Demographic segmentation (what is the profile of all of your current tenants, services and engagement Debt Prioritisation - can pay, won’t pay, can’t pay, settlement, write off – evidence based
Vulnerability Indicators (social housing tenants obviously often have complex needs that you may or may not be aware of, Experian can help Current bank accounts (with universal credit about to become a reality getting tenants to pay their rent by direct debit is a step in the right
direction). Former Tenants - Tracing – 30% of former tenants often live elsewhere
Debt Prioritisation Service (Experian can profile former tenants to show their ability to pay back a debt) Constant review service (missing former tenants)
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Mosaic Profile – example DD payers
Where CURRENT
DD payers are profiled
and from which “over”
and “under”
representation
is calculated.
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Mosaic Profile – Type Level
Group observations can be refined to type level for extra discrimination
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Bank Wizard Absolute
Obtain confidence
score on match
Confirm existence
of an account
Identify closed
accounts or where
owner is deceased
Address
Customer
ID
Bank
account
details
© 2010 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited.
Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work
may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Limited.
Harnessing the power of insight to maximise collections
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WE CURRENTLY PAY HOUSING BENEFIT DIRECTLY TO ONE MILLION PEOPLE IN THE PRIVATE SECTOR AND THAT WORKS PRETTY WELL”
Steve Webb – Work and Pensions Minister
http://www.bbc.co.uk/news/uk-21756567
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Debt Management: The Experian Approach
Supporting Best Practice
Benchmarking & Process Review
Data Cleansing
Single Debtor View
Web Collect
Triggers
DCA / Bailiff Panel
Management
Supporting Collections
Action
Citizenview
Debtor Information
Service
Debt Prioritisation
Service
Tallyman
Power Curve
Providing Debtor Insight
Debtor Management Process
Autotrace Plus
Supporting Case
Management
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Collection efforts around dynamic software
Collections Context sensitive user interface for effective collections
Configuration Simple & flexible collections infrastructure definition
Operations Behind the scenes processing
Management information Best practice MI reporting & measurement
Tallyman
Databases
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Simple, intuitive strategy definition
Customers & Accounts flow through each rule
Each node represents a
decision based on business rules
If the decision is positive the next rule is assessed
down the tree
The appropriate treatment can then be applied, for example a fully automated treatment path
…or a manual treatment path If a decision is negative…
….the next decision point down is analysed
Changes of Status will re-segment customers and
accounts
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Getting to grips with customer profile
Focus on affordability & financial reality
Shape the strategic conversation
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Affordability
No households could afford to buy
a home of equal size in the borough
1% of all RHP households could
afford to rent a home of equal
size at the average market rental
price in the borough
25% of all RHP households could
afford to rent a home of equal size
at the lowest available market
rent although supply is severely
limited
EXTRACT : Affordability
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• There is a close correlation of income
to arrears
• 1 in 3 households have an income of
less than £15,000 and this group accounts for approximately a third of
total rent arrears
Customers
are in rent
arrears
Identified
as having a
higher
ability to
pay
If all 36% of
customers cleared
their rent arrears
this would reduce
arrears by £326k
This represents
a reduction of
approximately
1/3rd of total
arrears
EXTRACT : Rent Arrears
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DPS audit results example
Number of accounts %
New Address 1499 33%
Living As Stated 972 22%
No New Data 950 21%
Deceased 9 0%
Other 1049 23%
Grand Total 4479
Deceased Flag
Number of accounts %
0 4470 100%
1 9 0%
Grand Total 4479
Public Data
CCJ Bankrupt IVA
No 48 347 366
Yes 338 39 20
(blank) 4093 4093 4093
Grand Total 4479 4479 4479
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DPS audit results example
Account Status
Number of Up To Date (UTD) accounts
Number of Not Up To Date (NUTD) accounts % UTD accounts % NUTD accounts
0 924 1656 21% 37%
1 800 519 18% 12%
2 552 357 12% 8%
3 383 258 9% 6%
4 264 168 6% 4%
5-10 412 361 9% 8%
11+ 27 43 1% 1%
Missing 1117 1117 25% 25%
Grand Total 4479 4479 100% 100%
© 2010 Experian Limited. All rights reserved.
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DPS audit results example
Collections Score
Likelihood to pay Number of accounts % Debt Value
0 89 2% £ 149,664
1 427 10% £ 851,104
2 336 8% £ 725,839
3 489 11% £ 1,056,912
4 516 12% £ 704,109
5 435 10% £ 1,108,160
6 376 8% £ 769,168
7 291 6% £ 612,691
8 258 6% £ 677,432
9 145 3% £ 320,209
Missing 1117 25% £ 1,528,100
Grand Total 4479 £ 8,503,387
© 2010 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited.
Other product and company names mentioned herein may be the trademarks of their respective owners. No part of this copyrighted work
may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian Limited.
Fraud Services
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• Eligibility and ID checks – streamlined, faster, more accurate, real time, all channels
• Social Housing Tenancy Verification (SHTV) – Harrow, Hillingdon, LBHF, Eastend Homes, L&Q, Enfield......
• Single Person Discount Fraud – 150 sites
• Procurement (internal) fraud
• General Fraud
ID and Fraud Services
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Social Housing Typical Results
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What is the ‘Tenancy Verification Service’?
Data returned:
• Tenancy residency dates
• Tenancy residency score
• Tenant alias names
• Latest traced address
• Confirmation of known cohabiters
• Up to 5 undeclared potential residents (names and dates of birth withheld for DPA reasons)
• Scores associated with residency and their associations with the tenant
Identify tenancies to be checked
Send input file to
Experian
Experian identifies potential
fraudulent tenancies
Experian produces Summary
Report
Client conducts
investigations based on
prioritisation
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Awarded Specified Anti-Fraud Organisation status
Why Experian
• Pioneering work in the Public and Private sectors
• Exceptional track record in safely and securely handling billions of
consumer records worldwide
• Thorough review of Information Security (IS)
• Anti-fraud systems are used by the worlds leading financial
institutions
• All staff have to sit and pass yearly DPA and IS assessments
Award has been given by the Home Office under section 68 of the Serious
Crime Act 2007
We are able to share public sector data in
public-public or public- private sharing schemes in
order to detect and prevent fraud
The only private
company
to be awarded SAFO status
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Summary
• It has never been more necessary to “know” tenants – both in terms of identifying and helping those who need such help
• Welfare Reform will not affect all tenants, equally
• Insight – explains differences in the tenant base
• Collections – informs rental and arrears efforts
• Fraud identifies sub-letters AND those not sub-letting
• Any pain and risk can be mitigated by knowing your customers and acting now in an informed way
• This is an opportunity to do things differently
• Please consider Rental Exchange – financial inclusion for tenants and Housing Association benefits.
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