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The transformative effect of AI on risk, CX, and analytics
Experian research conducted by Forrester Consulting
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Snapshot of key findings
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are prioritising the adoption of advanced analytics with AI/ML capabilities.
are prioritising investments in software-as-a-service (SaaS) and cloud technology.
are prioritising investments in new data sources to better understand risk and affordability.
79%
79%
75%
Top critical priority
65% believe that AI/ML is providing their organisation with a competitive advantage.
75% for Financial Services vs 83% for Telcos
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
1. Uncertainty, risk and resilience
69% of the Financial Services and Telco leaders in our survey are feeling optimistic about growth.
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Most business leaders expect that trading conditions will improve, with a corresponding increase in turnover during the coming year. However, nearly two-thirds are seeing a growing volume of customers defaulting and entering collections.
70%
70%
65%
52%
64%
74%
76%
74%
59%
Australia
Denmark
Germany
Italy
New Zealand
South Africa
Spain
Turkey
69%
OVERALL
Netherlands
77%
India
Percentage of business leaders optimistic about growth in the next 12 months
of the Financial Services and Telco leaders in our survey are feeling optimistic about growth
%
69
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
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Which risks pose the biggest threat?
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The opportunities that arise from the current challenging macroeconomic environment are closely linked to understanding risk. Winning organisations are using a wide variety of data sources and Machine Learning (ML) to improve the accuracy of their models.
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
EMAP
Discover other risk priorities and details by country
Overall
18%
18%
18%
54%
Denmark
23%
11%
18%
52%
Germany
19%
14%
24%
57%
India
15%
26%
18%
59%
New Zealand
21%
19%
18%
58%
Cybersecurity
%
55
Data privacy
%
54
Credit risk
%
42
Top three risk priorities for the year ahead
details by country
Top risk priorities for the year ahead
Impact of regulatory changes
Geopolitical
Macroeconomic
ESG
Credit
Data privacy
21%
18%
18%
18%
16%
55%
18%
13%
16%
14%
14%
12%
14%
14%
12%
13%
13%
10%
10%
12%
14%
13%
54%
43%
40%
39%
36%
36%
Cybersecurity
FULL PRIORITY OVERVIEW
Rank 1
Rank 2
Rank 3
Rank 1
Rank 2
Rank 3
Top risk priorities for the year ahead by country
Cybersecurity
Data privacy
21%
21%
18%
16%
55%
56%
56%
21%
14%
17%
18%
21%
28%
17%
15%
21%
19%
18%
22%
22%
16%
29%
12%
18%
60%
58%
60%
59%
Spain
Turkey
Overall
Australia
Netherlands
Italy
South Africa
2. Data and analytics through the eye of AI
Getting ROI from AI
54% of firms believe the productivity gains from investments in AI have already offset its initial cost.
%
54
AI is taking analytics to the next level. To take advantage of the opportunity that AI represents requires the right combination of data, infrastructure, processes and expertise – the success of every AI project depends on these fundamental building blocks. Data connectivity was a major challenge highlighted by firms in our survey. In the full report, you’ll find a detailed analysis of the biggest data and analytics-related challenges that are holding businesses back from achieving AI success.
Top analytics related challenges limiting firms’ success in achieving wider business objectives
06
04
03
02
01
Lack of ability to seamlessly connect different data assets, databases, and database architectures (data fabric)
%
48
Which countries find this the biggest analytics-related challenge?
Germany
Italy
India
Netherlands
New Zealand
Spain
Data management infrastructure unable to adequately support AI/ML use cases
Which countries find this the biggest analytics-related challenge?
Australia
Turkey
South Africa
%
46
Lack of sufficient categorisation capability to generate insight from unstructured data
%
41
Lack of fast and scalable processes for model deployment
%
45
Lack of resources for ongoing model development, maintenance, validation, and reporting
%
42
Lack of sufficient data science and analytics expertise
Which country find this the biggest analytics-related challenge?
Denmark
%
41
05
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
The core benefit of AI is the ability to find patterns and make connections that human analysts can’t, especially with unstructured data. In order to achieve that businesses need the right combination of data, infrastructure, model management and expertise.
3. Maximising AI implementation
believe AI/ML has fundamentally changed how their organisation operates.
%
59
Most businesses are already using AI or plan to start using it in the next 12 months
How can businesses maximise the opportunity of AI?
Customer service
Identity verification
Product enhancement
Portfolio monitoring
Credit risk models
Fraud models
We are already using AI/ML
%
35
India
We aren’t using AI/ML yet, but plan to use AI/ML in the next 12 months
%
39
We have no plans to use AI/ML
%
24
%
25
%
40
%
25
%
34
%
39
%
25
%
33
%
40
%
26
%
30
%
39
%
29
%
36
%
37
%
27
Countries with the highest existing AI/ML use per category
Australia
Turkey
South Africa
43% Fraud detection
51% Portfolio monitoring
39% Product enhancement
40% Identity verification
49% Customer service
42% Credit risk models
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Download the full report
Open Banking: an open door to data treasure
Data from Open Banking provides businesses with highly granular insight into their customers, yet more than half (54%) of our respondents are still trying to figure out how to get the most value from Open Banking. AI-powered analytics is the key to unlocking value from Open Banking data.
"My organisation is still trying to figure out how to get the most value from Open Banking"
OVERALL
Australia
Denmark
Germany
Italy
India
Netherlands
New Zealand
South Africa
Spain
Turkey
29%
25%
29%
30%
23%
30%
23%
25%
32%
28%
20%
17%
23%
34%
41%
39%
33%
28%
24%
23%
28%
28%
Cloud, the key to enabling AI
Cloud is becoming essential to provide the capacity and compute resources to ingest and manage the high volume of data that is needed for AI and ML. It also provides flexibility and scalability that can be easily adjusted when delivered as a service implementation. More than half of our respondents (53%) agree that the adoption of cloud-based software will be key to enable their organisation to accelerate their AI/ML programme.
Percentage of firms that are using external cloud providers to manage their analytics platforms
More than half of firms believe that cloud helps avoid data silos, accelerate the adoption of AI/ML and save money.
70% average
Germany
Italy
India
Netherlands
New Zealand
Spain
Australia
Turkey
South Africa
Denmark
66%
58%
69%
68%
70%
71%
71%
74%
85%
72%
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
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AI impacting customer experience
Interested to know what percentage of businesses rate their CX as best in class and a key differentiator?
And how many are already using AI to enhance their service delivery? No surprise that both these figures are closely aligned.
of businesses believe their AI initiatives have enhanced their CX.
%
65
Find out in the full report
Percentage of business leaders that believe AI has enhanced their CX
31%
15%
32%
25%
31%
48%
26%
35%
32%
30%
30%
27%
28%
31%
30%
39%
33%
38%
32%
34%
29%
52%
OVERALL
Australia
Denmark
Germany
Italy
India
Netherlands
New Zealand
South Africa
Spain
Turkey
Managing the risks involved with AI implementation is critical to ensure this technology is used in a responsible and ethical way. To achieve this, businesses need to use explainable models, as transparency enables human oversight.
Experian’s explainability solutions can be applied to existing models and can even be used on neural networks.
4. Managing AI risks
of respondents are currently using ML models that lack transparency.
%
46
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Percentage of businesses that have a comprehensive AI risk management program.
Is synthetic data the silver bullet of ML?
are prioritising investments in AI-generated synthetic data.
%
63
ML is a powerful technology. However, maximising its potential is challenging. Our research highlights several major issues when it comes to developing accurate ML models, such as a lack of data, data privacy restrictions and removing bias. Using generative AI to produce synthetic data for credit risk analysis and fraud prevention has the potential to resolve these challenges. Our top data scientists discuss this exciting technology in the full report.
61%
67%
57%
60%
61%
62%
63%
73%
69%
48%
63%
OVERALL
Australia
Denmark
Germany
Italy
India
Netherlands
New Zealand
South Africa
Spain
Turkey
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
The future: business priorities and budget allocation
What’s the most critical business priority for the upcoming year?
What’s the most critical business priority for the upcoming year?
For the first time ever in our research, the most critical business priority is adopting advanced analytics with AI/ML capabilities. Our final section of the report explores the top 5 critical business priorities and how these align with budget allocations. Find out how your business priorities compare with nearly 900 senior business leaders.
Read the full report to find out why AI is key to developing resilience in these turbulent times
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Uncertainty, risk and resilience
Agree
Strongly Agree
Agree
Strongly Agree
How is AI driving innovation in the credit industry?
The research survey was conducted by Forrester Consulting.
We set out to understand how organisations are using AI to enhance analytics, risk assessment, and customer experience, while also investigating the challenges they encounter.
This interactive page covers some of the key highlights. But remember to download a complimentary copy of the full report for all the insights. We hope you find the analysis valuable in charting your own course to AI success.
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Our latest research, conducted by Forrester Consulting, explores how AI is helping businesses to address their top priorities.
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Download the full report
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Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Download the full report
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Download the full report
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
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Managing risks
3
Maximising AI
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Cloud maturity
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Data from Open Banking provides businesses with highly granular insight into their customers, yet more than half (54%) of our respondents are still trying to figure out how to get the most value from Open Banking.
AI-powered analytics is the key to unlocking value from Open Banking data.
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
Base: 889 EMEA & APAC decision makers at Financial Services and Telco providers.
Source: Experian research conducted by Forrester Consulting.
Base and source »
ML is now critical to enable businesses to improve decision accuracy in credit risk and fraud. Our 8-step guide walks you through the key stages of developing an ML model. For each stage, we discuss some common pain points and how these can be overcome.
Not yet upgraded to ML Models for your credit decisions?
View the guide
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