COSTA MESA, Calif., July 11, 2017 /PRNewswire/ -- Traditional means of obtaining credit are often slow and tedious, and providing sensitive information on paper in public spaces can expose consumers to risk. Experian® today unveiled Text for Credit™, an industry-first technology that transforms the way consumers secure credit.
Text for Credit allows consumers to initiate and complete the credit application process within minutes with a simple text message. For instance, consumers interested in taking advantage of a store credit card incentive can secure that card through their mobile device — a particularly exciting innovation considering smartphone ownership is nearing 100 percent for adults aged 18 to 44.
"Technology has brought vast improvements to consumer banking, insurance and investing services, but the credit application process has remained largely unchanged," said Alex Lintner, Experian's president of Consumer Information Services. "With Text for Credit, consumers will get real-time access to credit, creating a better experience for the consumer and increased conversion for lenders and businesses."
In an Experian survey, consumers were asked to identify their top three concerns about applying for credit or financing in a retail location. More than half (58 percent) cited privacy concerns, and 42 percent cited the length of time it takes to apply. These concerns translate to lost revenue — 12 percent of consumers said they have walked away from a purchase because it was taking too long to get approved for credit, while 16 percent have walked away because the person in front of them was applying for credit.
Additionally, 21 percent of consumers said they would consider purchasing a car in the next six months if they could shop credit offers and apply via mobile device quickly and securely. Seventeen percent said the same about clothing, and 15 percent said they'd consider purchasing a large appliance.
Text for Credit offers the speed, convenience and privacy necessary to solve these issues. It's as simple as it sounds:
- Consumers seeking credit text a keyword such as "CREDIT" to a short code supplied by a merchant or a credit issuer, the same way some retailers now allow consumers to "text to buy."
- Consumers then receive a text message response that takes them to a hosted website where they can apply, review credit offers and receive an instant decision.
- In most cases, consumers will be recognized by their device credentials, which lets them avoid filling out a lengthy credit application.
- If approved, consumers will have immediate access to the credit via a barcode or account details sent to their device.
"Experian is taking the credit industry into the real-time economy with this innovative, convenient and confidential new way to apply for credit. For consumers, Text for Credit means no more paperwork, no more anxious minutes hoping for credit approval and dramatically reduced risk from a paper-extensive exchange of sensitive information," continued Lintner. "In fact, consumers can find out what they qualify for before they come to a dealership or a retail store, and that can translate to big sales increases."
Lenders and merchants interested in offering Text for Credit can visit www.experian.com/TextforCredit
Experian is the world's leading global information services company. During life's big moments — from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.
We have more than 16,000 people operating across 37 countries and every day we're investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.
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