5 steps to boost your accuracy in data reporting

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Boost your accuracy in data reportingSpeakers

Julie Moroschan, Consultancy Director, ExperianJulie has more than 20 years working with Metro 2® reporting format. She was an active member of the Consumer Data Industry Association (CDIA) Metro 2® Task Force, responsible for developing, maintaining and enhancing the Metro 2® format. In her former role, Julie created a formal enterprise-wide Data Standards and Governance team, responsible for identifying and resolving data related issues, promoting data quality, ownership, awareness and knowledge across the enterprise.

In her role in the Global Consulting Practice she has engaged with clients to improve the accuracy and integrity of their reported data, assisted in creating policies and procedures for reporting and dispute management, and provided data analysis, guidance and best practices to ensure compliance with regulatory obligations

Michel Berard, Senior Account Executive, ExperianMichael Berard is a Senior Account Executive at Experian Data Quality, a leading provider of data quality and data management solutions. Michael is focused on helping organizations leverage their data to gain actionable insights, make faster, data-driven business decisions, and gain a competitive advantage. With more than 7 years experience, Michael has assisted organizations of all sizes to implement data governance programs, reduce regulatory risk, and streamline data migration projects.

Rishi Patel, Senior Technical Consultant, ExperianRishi has over 10 years of experience in data quality software from development and implementation to best practices and solution strategy. He is an active member in the data quality community as well as building out highly skilled consultancy practices within Experian focused on Enterprise Applications and architecture. His role now focuses on go to market strategies and technical subject matter expertise in new and emerging technologies for Experian Data Quality.


Agenda

Data accuracy Key findings

Media headlines

The FCRA data furnisher rules

Best practices Understanding your data

Regulatory exam surprises

What other lenders are doing to prepare

5 steps to boost accuracy Key strategies

How Experian can help DataArc 360™ powered by

Experian Pandora™

Results

Demonstration


Data accuracy


Boost your accuracy in data reporting

90% of financial institutions believe increasing regulation has driven their need for better data analytics and management

76% of financial institutions believe inaccurate data is undermining their ability to provide an excellent customer experience

29% of US companies feel an inadequate data strategy contributes to a lack of data accuracy

28% of financial institutions suffer from regulatory reporting challenges


Boost your accuracy in data reportingRegulatory scrutiny


Boost your accuracy in data reporting Fair Credit Reporting Act (FCRA)

Those that report consumer credit data to the credit bureaus should comply with data furnisher rules stated in the current Fair Credit Reporting Act (FCRA)

Duty of furnishers

Obligations under the Fair Credit Reporting Act (FCRA)

Section 623: Responsibility of furnishers to provide accurate and complete information to credit reporting agencies1


Boost your accuracy in data reportingFair Credit Reporting Act (FCRA)

Sound policies and procedures can help to validate data quality and to ensure compliance

Accuracyguidelines

Obligations under the Fair Credit Reporting Act (FCRA)

Regulation V (part 1022):Responsibility to create policies and procedures concerning the accuracy and integrity of furnished information2


Best practices


Providing policies and procedures for Metro 2® data reporting and dispute handling

Providing monitoring metrics for reported data Provide reporting samples Metrics showing the 30-day dispute investigation obligations are being met Providing samples of dispute investigation including reviewing additional

documentation provided by the consumer.

Boost your accuracy in data reporting Regulatory exam expectations and surprises

EXPECTED


Boost your accuracy in data reporting Regulatory exam expectations and surprises

Request to provide resumes, organizational charts and qualifications (to see open and vacant positions)

Board meeting minutes for any meetings that addressed data furnishing/dispute handling compliance matters

Controls on who has access to data including contractors, vendors and servicers (including what training they are given and procedures)

Data mapping documents including data ownership and controls by data element, manual reports, visual basic scripts hot keys, data dictionaries and glossaries.

Training provided and taken by personnel responsible for data reporting and dispute

Documentation such as letters, phone calls, emails from and to consumers including recorded calls from more than a year ago

If an error was found in sample data, provide a full accounting of all records and prove the accuracy

UNEXPECTED


Boost your accuracy in data reporting How organizations are meeting obligations

Key risk indicators Identifying and combining a small set of highly risky statistics to monitor

Benchmarking against peers Allows comparison of reporting and dispute policies and brings

perspective to the metrics

Benchmarking internally Learning internally and leveraging internal best practices

Ensure consistent treatment for consumers with multiple products

Validate Metro 2® reported date prior to sending

Building repository to house errors from all bureaus in order to correct and manage

Large, multi line of business organizations are creating cross-department oversight teams and using deep metrics

BESTPRACTICES


Boost your accuracy in data reporting How organizations are meeting obligations

Disputes and reporting closely aligned C-level oversight and responsibility

Organization, internal awareness and oversight at the highest levels

Mapping data from source to Metro 2® output Using the insights to formalize governance of the data; ensure

reporting team is a stakeholder in any changes to fields in upstream systems that produce Metro 2® data

Enables Metro 2® validation as a part of system regression testing

Data mapping and governance

Using dispute metrics to enable root cause analysis Testing dispute processes and policies to ensure they address

regulatory requirements Digging deep into e-OSCAR data for actionable insights

Deeper insight into disputes

Reviewing examples on a periodic basis to ensure accuracy (system of record, Metro 2® reporting, CRA database and disputes)Sampling


5 steps to boost data accuracy


Implement data governance

Establish robust data monitoring

Proactively assess data accuracy

Define data quality methodology

Prioritize the consumer


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Five steps to boosting your accuracy in data reporting


Boost your accuracy in data reporting Step 1: define data quality methodology


Where does the data come from and how often is it updated? Do you have consistent information across all systems? How is the information linked or matched together?

Boost your accuracy in data reporting Analyze: evaluating data

Data quality, coverage and matching


Implement standardization processes Transformations of data against business rules Review source definitions of phone, address, or email verification

Boost your accuracy in data reportingImprove: evaluating quality

Understand standardization and verification

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Define right party contact at the “account level”► One or more phones or addresses belong to the consumer

Reduce wrong party contact—false positive matches► Phone scoring or address ranking can be used to support custom

contact strategies Unique contact data is identified when no other source is available

► How reliable is the unique data?

Boost your accuracy in data reportingControl: monitor performance over time

Measuring change or success


Boost your accuracy in data reporting Step 2: proactively assess data accuracy

Assess data accuracy Identify and remediate data issues prior to submitting to the bureaus Perform data mapping and validation Identify root cause of errors and action on findings Leverage partnerships (internal/external)

Data accuracy will help to ensure regulatory compliance, operational efficiencies and drive a positive customer experience


Boost your accuracy in data reporting Step 3: prioritize the consumer

Prioritizing the consumer Understand customer experience Implement improvements and consistencies in the credit life cycle Speedy dispute response and resolution Ensure education, awareness and transparency

Accuracy TransparencyConsistency


Boost your accuracy in data reporting Step 4: establish data monitoring

Establish data monitoring Analyze reported Metro 2® data and understand industry

benchmarking Monitor data reporting rejects Receive ongoing data feed of reporting results to easily track

and measure results

Data monitoring will provide a method to identify reporting anomalies, help to prioritize issues and track trends on an ongoing basis


Boost your accuracy in data reporting Step 5: implementing data governance

Data governance Data stewardship and Metro

2® reporting councils Business process and

controls Consider a single governance

solution that may be leveraged company wide

Relationship discovery

Prevents future data quality issues

Best practices are shared

Knowledge is shared

Regulatory compliance

Benefits


How Experian can help


Boost your accuracy in data reportingDataArc 360™: a new data quality solution

Application

Functionality

Results driven

DataArc 360 leverages a data management tool called Experian Pandora. The application that is loaded on premise and is accessible via centralized, managed sever and available securely to named users –application can connect directly to a source system to upload data

Metro 2® rules are pre-loaded into Experian Pandora™ Solution is bureau agnostic and can be used when sending data files to all CRAs

DataArc 360™ is be pre-coded with 300+ data quality rules: 225 statistics are checked by 115 compounded Metro 2® rules based on multi attribute dependencies

Rules may be customized if needed – updates to a rule can be made in less than 10 minutes

Identify and remediate data issues prior to submitting to the bureaus

Analyze / uncover data issues, find root cause, perform ad hoc investigations, monitor quality over time, and prioritize and justify actions

Beyond just a visual representation of data, DataArc 360™ can help with data preparation, perform instantaneous data browsing, filtering and relationship discovery


Boost your accuracy in data reportingPre-built rules

Metro 2® rules

300 data quality checks

Checks for invalid consumer names / addresses (special words / phrases)

Checks for potentially embedded data (SSN embedded within account number)

Over 115 rules and illogical conditions aligned with Metro 2® reporting

Flags accounts with potentially inaccurate calculations


Boost your accuracy in data reporting How DataArc 360™ can help

Problem Solution

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Regulatory pressureMeeting FCRA requirements, undergoing CFPB exams

Data qualityMonitoring for quality, preventing rejects, remediating reporting issues

Customer experienceMinimizing disputes, reporting inconsistencies and inaccuracies

Meet regulatory obligationsValidating accuracy of consumer credit data on the Metro 2® file, proactively preparing for an exam, implementing policies and procedures to assess data accuracy

Identify errors on Metro 2® submission prior to submitting to the bureaus

Analysis of data quality

Drive positive experienceRemediate reporting issues / inaccuracies prior to sending data to the bureaus, upload dispute information to monitor and compare against Metro 2®


Boost your accuracy in data reporting Key findings

Initial data load findings

Metro 2® rules were deeper in content and higher in accuracy against SQL attempts

Database query faster and more efficiently than SQL developers (roughly 400% faster with deeper results)

Name failures due to special characters such as periods and apostrophes


Boost your accuracy in data reporting Key findings

Red flags for data quality issues

Account number check failed due to account numbers with embedded blanks

Borrower is less than 18 years of age Authorized user reported with missing date of birth Date of first delinquency is too recent for account status

reported


Demonstration


Boost your accuracy in data reporting DataArc 360™ screen shots



Dashboard

Error name and score



For more information please visit our website at:

https://www.edq.com/products/pandora/dataarc-360/

5 steps to boost your accuracy in data reporting

Data & Analytics