In today's dynamic business environment, the value of consumer data, the rights of consumers to privacy and the responsibility of organisations to protect consumer information have never been more prominent. One only has to pay a cursory glance to international media coverage of recent events, predominantly in the United States, to understand how, if over-looked, the custodianship of consumers' personal data can be significantly compromised.

Information Security has been a business priority for the Experian group for some time. Experian is committed to ensuring that sensitive consumer data is adequately secured at all times, from when it is dispatched by a client to Experian, throughout Experian's internal processing and storage procedures, to when it is accessed by clients, whether via Experian's product range or through other forms of data transfer. An international-wide development programme, known as ‘Operation Safeguard' is currently in progress, designed to ensure that Experian remains at the industry forefront when it comes to securing data on behalf of both consumers and clients.

This project is also in line with the requirements of Regulation 18 of the National Credit Act 34 or 2005.

Key strategies include:

•  Leading an industry-wide transformation such that the vast majority of clients will, in future, move their customer data to Experian via encrypted electronic transmissions, rather than via physical media movements;

•  Eliminating all unnecessary or superfluous media movements to and from clients – as a result of the work already undertaken there will be 10,000 less physical media movements over the next twelve months;

•  The provision of cost-effective data encryption techniques and secure courier services to safeguard any residual data which continues to be moved physically;

Living out the principles of Safeguard across a business as large, diverse and geographically widespread as Experian represents a major challenge to all involved and is greatly dependent upon the goodwill and excellent partnerships Experian has forged with its cross-sector client base. Key challenges include the provision of a scalable, cost-effective and thoroughly secure data communications network with both the bandwidth capacity and resilience to enable massive volumes of data to be reliably transferred electronically between clients and Experian on a day-by-day basis.

With the assistance of the Account Management team, Experian will embark on Operation Safeguard discussions with all clients and other stakeholders, to review and, where necessary, improve the security of data transmissions to and from Experian.

Written by Astra Bester, Compliance Officer, Experian South Africa

Experian's 15th annual conference, to be held at Zimbali Lodge, KZN from the 19 – 21 September 2007, is an event not to be missed. This year's presentations and panel discussions will draw from the knowledge and experience of industry experts, clients and the Experian global team.

As one of Southern Africa's leading credit conferences, the Experian Annual Conference is a long-established and highly regarded industry event that brings together industry experts from South Africa and around the globe to share their insights on today's most pertinent credit topics.

We are pleased to add Andre Hattingh, of VISA CEMEA, to our list of speakers who will present a VISA case-study on the successful roll-out of its products into South Africa and across the African continent. Furthermore, Nigel Fine, Managing Director, Experian EMEA, will be joining the South African team to share Experian Group's assertive strategy for the African region and other growth markets across the region.

We are also excited to have secured soccer great, Gary Bailey as key note speaker at the conference. Gary will be presenting his popular ‘Game Plan 2010' talk which addresses the massive opportunities for companies in the 2010 World Cup and the role of South African organisations and individuals in contributing to the overall success of the event.

	Experian, the global information solutions company, is pleased to announce that it has agreed to acquire an initial 65% stake in Serasa, the market leading credit bureau in Brazil and operator of the fourth largest credit bureau in the world, from a consortium of Brazilian banks.

The stake will increase to 70% over the next six months. The purchase price for the initial stake is R$2.32bn ($1.2bn) 1 , inclusive of transaction costs, net of cash, and will be funded from Experian's existing facilities. The transaction, which is expected to be earnings neutral in the first full fiscal year of ownership and earnings enhancing thereafter, is expected to complete by the end of June.

Don Robert, Chief Executive of Experian, commented:

"The acquisition of Serasa represents a unique and transformational opportunity for Experian. It propels us to a market leading position in one of the most attractive growth markets for credit products globally, and we see significant potential as we deploy our world-class value-added products. It fits our strategic objectives of owning market-leading credit bureaux in key markets around the world and of expansion into exciting emerging economies. We are also delighted to have the continuing support of Brazil's largest banks, as both shareholders and clients of Serasa."

Credit bureaux in emerging markets

Fraud has undoubtedly become a significant source of revenue loss and bad debt to the telecommunications industry and with the expected continuing growth in revenues it can be expected that fraud will increase proportionally. It is predicted that the current losses of $70 billion in 2005 will increase to $93.5 billion by 2010.

It is therefore critical for all organisations to implement robust fraud prevention and detection systems to protect their own organisation, the industry as a whole and the innocent consumer.

Clearly, the best way to stop fraud is to catch it before it starts, at the point of registering new customers. As new advances make it harder for fraudsters to commit technology based fraud and organisations address weaknesses in systems and processes, fraudsters will turn to another operator or area of business in order to hit the easiest target. Realistically, the only way to stop fraud, rather than just displace it to another target, is to co-operatively tackle fraud across the industry. A key means of achieving this is through the use of shared subscription and fraud data across telecommunications organisations and the credit industry as a whole. The benefits for telecommunications operators are wide ranging. Financial estimates have been put at 30 million euros in the UK per year for the industry and analysis of existing national schemes demonstrate that up to 30% of frauds are detected only through cross matching shared data across organisations.

This white paper focuses on subscription fraud and examines methods by which the telecommunications industry can protect itself against the threat of fraud, in particular the powerful benefits of co-operatively sharing data across organisations and industries.

Low earners are sinking deeper into debt

Johannesburg - Borrowing by low-income households has more than doubled since 2000, according to a study by Credit Suisse Standard Securities (CSSS). In the past few years, South Africa 's lending institutions have dished out loans at a staggering rate, with mortgage loans alone growing by R13 billion a month last year.

Growth in the overall credit advances has averaged about 25 percent a year, while the official debt-to-income ratio rose to a record high of 76 percent.

Goolam Ballim, the group economist at Standard Bank, said the debt-to-income ratio reflected an individual's total debt in relation to their annual income.

Some commentators, including the Reserve Bank, have expressed concern that borrowers had gone in too deep into debt.

However, the study showed that the credit growth had ''occurred due to a broadening of access to credit markets, rather than an increase in credit demand by existing debtors".

Recently, a number of studies, including research by the University of Cape Town Unilever Institute, have shown that a significant number of people within the emerging black middle class were using a lot of debt, albeit for the first time.

The well-to-do group, so called black diamonds, with an annual purchasing power of R180 billion, were using debt to finance the purchase of houses, cars and other durable goods.

CSSS found that low-income groups, particularly those earning less than R15 000 a year, increased their exposure to debt from 12 percent to 15 percent, and from 42 percent to 58 percent between 2000 and this year, an increase of more than twofold.

According to the survey, households with incomes of between R7 000 and R8 999, increased their use of credit cards from 7 percent of disposable income in 2000 to 17 percent this year.

But these households also increased loans taken for housing from 21 percent in 2000 to 51 percent this year.

However, the overall debt-to-disposable income ratio for this group was estimated at 95 percent, higher than the 76 percent given by the Reserve Bank in its Quarterly Bulletin this month.

CSSS said that people falling in the R10 000 to R13 999 income category had an even higher ratio of 135 percent, with home loans accounting for the largest share in all debt.

Interestingly, no income group from R7 000 and above had a ratio close to the official 76 percent.

CSSS also found that the official debt servicing burden was much lower than that of the survey.

While the bank had estimated debt servicing ratio at 9 percent, the study showed that it ranged between 25 percent and 40 percent.

Monthly servicing costs for unsecured debt were found to be higher. This was attributed to higher interest charges, fees and other costs associated with this type of debt.

The high level of debt burden was expected to lead to slower credit growth, particularly given the new credit law, which came into effect at the beginning of the month.

The legislation requires a more stringent assessment of potential borrowers.

CSSS said households with debt servicing ratios of more than 40 percent of disposable income were generally scored negatively in industrialised economies, and struggled to obtain further credit.

Meanwhile, it said the demand for credit showed low sensitivity to interest rate changes. The response to the interest rate increases effected since last June, had been "excessively slow".

The Reserve Bank has increased rates five times by 50 basis points on each occasion.

The latest came in the wake of consumer inflation excluding mortgages rising beyond the upper limit of the bank's target of 3 percent to 6 percent. Inflationary pressures have built up in recent months on the back of strong consumer demand.

CSSS said the bank might have to tighten monetary policy further to slow the high levels of demand.

However, some of the strong consumer demand is attributed to the conversion of mortgage equity to cash to fund home improvements and to pay off debt.

CSSS said the amount of funds accessed from mortgage equity were estimated at R40 billion in 2004, rising to R45 billion in 2005. It was R30 billion last year.

These values accounted for between 30 percent and 50 percent of household consumption. About 73 percent of households viewed mortgage equity as a source of money.

Written by Tonny Mafu for Business Report June 29 2007.

Exciting career opportunities currently available at Experian: Project Manager Cape Town - Planning, initiation, monitoring and control of projects to deliver quality products/services within budget and on time. Management of delivery procedures, software version control and release procedures. Management of third parties involved in the technical delivery of software solutions. Read more

Strategic Consultant - Leads and drives the definition and implementation of the total solution for the major projects. Also manages the client relationship at a senior level, driving their internal change programme. Read more

Data Librarian - The applicant requires strong organising and management skills relating to data and data storage, and a concern for order and accuracy and careful adherence to establish procedures and best practices. The information not only has to be protected but also changes in procedures or systems are required to be defined and implemented to maximise the quality and integrity of the data and data systems to prevent abuse both internally and externally. Read more

Business Development Manager - The main responsibility of this role is to establish and realise new business and market opportunities and build effective business relationships to ensure ongoing profitable business for Experian. Read more