|Bid||2,455.00 x 0|
|Ask||2,456.00 x 0|
|Day's Range||2,445.00 - 2,465.00|
|52 Week Range||1,800.00 - 2,641.00|
|Beta (3Y Monthly)||0.31|
|PE Ratio (TTM)||30.81|
|Earnings Date||Nov. 12, 2019|
|Forward Dividend & Yield||0.37 (1.51%)|
|1y Target Est||25.64|
(Bloomberg) -- The average loan amount for new and used vehicles in the U.S. set records in the third quarter, as more sophisticated features like self-driving technology pushed up car prices.The average amount of a new-vehicle loan rose by 5% to $32,480 from a year earlier, according to information services firm Experian PLC. The average used-vehicle loan increased by 3% to $20,466.Car buyers are paying up for high-tech features such as voice-activated entertainment systems and semi-autonomous driver-assist technology that steers wandering cars back into their lane and automatically brakes to avoid read-end collisions.“Not only are consumers preferring SUVs which are typically more expensive than their sedan counterparts, but they’re also choosing not to skimp on in-vehicle features and content -- a positive indicator of consumer confidence in the economy,” said Oliver Strauss, chief economist at ALG, a subsidiary of TrueCar.U.S. auto debt has continued to expand, ticking up to $1.32 trillion in the third quarter -- an increase of $50 billion from a year earlier, according to the latest data from the New York Fed. The percentage of car loans in serious delinquency -- with owners behind on payments by 90 days or more -- also rose to 4.71% from 4.27% the previous year.The average payment on a new car or truck remained near a record $550 per month in the third quarter, according to Experian. To put this number into perspective: A homeowner could service about a $115,000 mortgage with a 30-year term at current interest rates for the same monthly payment.Consumers are also lengthening the terms of loans, with maturities of six years the most common. The average duration of a loan for a used car was 64.89 months and for new vehicles 69.28 months, according to Experian. The average lease term increased to 36.54 months from 36.18 months a year earlier.Buyers with good credit, prime and super prime consumers, now make up 51.24% of used car financing -- the highest percentage in a decade. The average monthly payment for a used vehicle reached $393 last quarter and the average payment for a leased vehicle rose $22 from a year earlier to $452 per month, Experian said.To contact the reporters on this story: Alex Tanzi in Washington at firstname.lastname@example.org;Keith Naughton in Southfield, Michigan at email@example.comTo contact the editors responsible for this story: Sarah McGregor at firstname.lastname@example.org, Anita SharpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Apple Inc. pitches its new card as a model of simplicity and transparency, upending everything consumers think about credit cards.But for the card’s overseers at Goldman Sachs Group Inc., it’s creating the same headaches that have bedeviled an industry the companies had hoped to disrupt.Social media postings in recent days by a tech entrepreneur and Apple co-founder Steve Wozniak complaining about unequal treatment of their wives ignited a firestorm that’s engulfed the two giants of Silicon Valley and Wall Street, casting a pall over what the companies had claimed was the most successful launch of a credit card ever.Goldman has said it’s done nothing wrong. There’s been no evidence that the bank, which decides who gets an Apple Card and how much they can borrow, intentionally discriminated against women. But that may be the point, according to critics. The complex models that guide its lending decisions may inadvertently produce results that disadvantage certain groups.The problem -- in Washington it’s referred to as “disparate impact” -- is one the financial industry has spent years trying to address. The increasing use of algorithms in lending decisions has sharpened the years-long debate, as consumer advocates, armed with what they claim is supporting research, are pushing regulators and companies to rethink whether models are only entrenching discrimination that algorithm-driven lending is meant to stamp out.“Because machines can treat similarly-situated people and objects differently, research is starting to reveal some troubling examples in which the reality of algorithmic decision-making falls short of our expectations, or is simply wrong,” Nicol Turner Lee, a fellow at the Center for Technology Innovation at the Brookings Institution, recently told Congress.Wozniak and David Heinemeier Hansson said on Twitter that their wives were given significantly lower limits on their Apple Cards, despite sharing finances and filing joint tax returns. Wozniak said he and his wife report the same income and have a joint bank account, which should mean that lenders view them as equals.One reason Goldman has become a poster child for the issue is that the Apple Card, unlike much of the industry, doesn’t let households share accounts. That could lead to family members getting significantly different credit limits. Goldman says it’s considering offering the option.The bank said in a tweet it would also re-evaluate credit decisions if the borrowing limit is lower than the customer expected.“We have not and never will make decisions based on factors like gender,” the company said. “In fact, we do not know your gender or marital status during the Apple Card application process.”With this month’s snafu, Goldman has found itself in the middle of one of the thorniest laws in finance: the Equal Credit Opportunity Act. The 1974 law prohibits lenders from considering sex or marital status and was later expanded to prohibit discrimination based on other factors including race, color, religion, national origin and whether a borrower receives public assistance.The issue gained national prominence in the 1970s when Jorie Lueloff Friedman, a prominent Chicago television anchor, began reporting on her own experience with losing access to some of her credit card accounts at local retailers after she married her husband, who was unemployed at the time. She ultimately testified before Congress, saying “in the eyes of a credit department, it seems, women cease to exist and become non-persons when they get married.”FTC WarningA 2016 study by credit reporting agency Experian found that women had higher credit scores, less debt, and a lower rate of late mortgage payments than men. Still, the Federal Trade Commission has warned that women may continue to face difficulties in getting credit.Freddy Kelly, chief executive officer of Credit Kudos, a London-based credit scoring startup, pointed to the gender pay gap, where women are typically paid less than men for performing the same job, as one reason lenders may be stingy with how much they let women borrow.Using complex algorithms that take into account hundreds of variables should lead to more just outcomes than relying on error-prone loan officers who may harbor biases against certain groups, proponents say.“It’s hard for humans to manually identify these characteristics that would make someone more creditworthy,” said Paul Gu, co-founder of Upstart Network Inc., a tech firm that uses artificial intelligence to help banks make loans.Upstart uses borrowers’ educational backgrounds to make lending decisions, which could run afoul of federal law. In 2017, the Consumer Financial Protection Bureau told the company it wouldn’t be penalized as part of an ongoing push to understand how lenders use non-traditional data for credit decisions.AI PushConsumer advocates reckon that outsourcing decision-making to computers could ultimately result in unfair lending practices, according to a June memorandum prepared by Democratic congressional aides working for the House Financial Services Committee. The memo cited studies that suggest algorithmic underwriting can result in discrimination, such as one that found black and Latino borrowers were charged more for home mortgages.Linda Lacewell, the superintendent of the New York Department of Financial Services, which launched an investigation into Goldman’s credit card practices, described algorithms in a Bloomberg Television interview as a “black box.” Wozniak and Hansson said they struggled to get someone on the phone to explain the decision.“Algorithms are not only nonpublic, they are actually treated as proprietary trade secrets by many companies,” Rohit Chopra, an FTC commissioner, said last month. “To make matters worse, machine learning means that algorithms can evolve in real time with no paper trail on the data, inputs, or equations used to develop a prediction.“Victims of discriminatory algorithms seldom if ever know they have been victimized,” Chopra said.(Updates with Goldman comments in ninth and 10th paragraphs.)To contact the reporters on this story: Shahien Nasiripour in New York at email@example.com;Jenny Surane in New York at firstname.lastname@example.org;Sridhar Natarajan in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The FTSE 100 added 0.5%, while the mid-cap index , which rallied on Monday after Brexit Party chief Nigel Farage said he would not fight Conservative-held seats in next month's British election, rose 0.1%. Markets rallied last week on signs of a thaw in relations between Washington and Beijing, but those gains were reeled back on Monday after U.S. President Donald Trump cast doubt on the progress of negotiations. Despite nervousness surrounding the outlook for global growth, sentiment around the U.S.-China trade rhetoric softened with two of Wall Street's benchmark indexes scaling record highs before Trump's speech at the Economic Club of New York on Tuesday.
Experian, the world's largest credit data company, said pretax profit rose to $480 million for the six months ended Sept. 30 from $470 million a year earlier, while organic revenue jumped 7% to $2.50 billion over the same period. "This was another half of good progress with strong momentum in North America, Latin America back to strong levels of growth, and pleasing progress in Consumer Services," Chief Executive Officer Brian Cassin said. The London-listed company narrowed its full-year organic revenue growth forecast to a 7-8% range from the 6-8% target it announced when it published its last annual results in May.
How far off is Experian plc (LON:EXPN) from its intrinsic value? Using the most recent financial data, we'll take a...
For investors, increase in profitability and industry-beating performance can be essential considerations in an...
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
PlaceIQ is announcing a strategic investment from Experian. CEO Duncan McCall said the investment is part of a growth round that PlaceIQ raised after divesting itself of its advertising business (which is being taken over by Zeta Global).
Experian, one of the largest credit reporting bureaus in the United States, announced today that it has invested in CompareAsiaGroup, the financial services marketplace. Experian led the initial closing of a $20 million B1 round. In addition to new funding, the investment also gives Hong Kong-based CompareAsiaGroup access to Experian’s technology, including Experian One, a cloud-based credit scoring and risk assessment platform.
When Stackin' initially pitched itself as part of the Techstars Los Angeles accelerator program two years ago, the company was a video platform for financial advice targeting a millennial audience too savvy for traditional advisory services. Now, nearly two years later, the company has pivoted from video to text-based financial advice for its millennial audience and is offering a new spin on lead generation for digital banks. “Stackin' has a unique and highly effective approach to connect and communicate with an entire generation of younger consumers around finance,” said Ty Taylor, group president of Global Consumer Services at Experian, in a statement.
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose...
New research from Experian has revealed that most customers (51%) are so fed-up with slow sign-up processes that many will simply abandon their application. At the same time, 74% of businesses say that improving customer experience is a critical or high priority, however 28% admit they are not sure they offer a friction-free service to customers. Just 35% are using automation to help them make accurate decisions about new customers, which can radically speed up processes by removing the need for human involvement.
The big shareholder groups in Experian plc (LON:EXPN) have power over the company. Institutions often own shares in...