By Clara Ferreira-Marques
LONDON (Reuters) - Credit information firm Experian
Experian, best known for running consumer credit checks for banks, retailers and other companies, has countered the effects of the recession and the impact of banks reining in lending thanks to new products and by helping lenders and other clients manage their existing clients and debt collections.
But the head of Experian's UK, Europe, Middle East and Africa unit said there were signs of a return of interest to its more traditional credit services businesses from 2010, as some UK banks consider attracting new loan clients -- albeit high-quality customers -- in their plans for next year.
"I wouldn't say there is a tidal wave-type shift but there is a subtle shift we are hearing from (planning) conversations -- maybe at least a mixed message -- that some are thinking of moving out in what I would call targeted acquisitions," Victor Nichols told Reuters in an interview.
"But through this year and predominantly next year, it's likely to be about debt and customer management."
Nichols said some large institutions such as Lloyds Banking Group
Nichols also cautioned the turn for Experian in terms of traditional credit services volumes would only happen 6 months after unemployment reaches its low point.
"I think it will still be next year, and I think the mixed message we are hearing will play out to be stronger in the second half -- but it is all guesswork at this stage," he said.
Experian said alongside its first-half earnings presentation earlier this week that it had seen increased activity in its core U.S. market, though Britain remained "challenged" in the short term with debt write-offs still rising.
Credit Services accounts for just over 40 percent of group revenue and some 30 percent of its UK and Ireland revenue.
INTERACTIVE GROWTH
Nichols, who joined Experian in 2007 from Wells Fargo
He said on Friday he plans to expand that business through his EMEA region, where it is currently all but absent.
Growth plans include the UK, where Experian hopes to strike up "white label" deals to provide services for retailers or lenders, or to provide services for employers.
But Nichols said Experian would remain cautious.
"We know this is a business that has to take investment because it is heavily marketed, so we will be very careful about prioritising this against other investments," he said.
Experian will only expand its Interactive business in markets that allow access to positive credit data -- meaning they can map not just negative data like missed payments, but payment patterns -- strong internet traffic, e-commerce and ID mechanisms to verify users.
Experian competes in the UK market with U.S. peer Equifax
Nichols declined to comment on whether Experian would look at Callcredit, but said he remained interested in bolt-on deals.
"We often look at the marketplace, we are still acquisitive," he said referring to the UK. "We are investing internally, but we haven't stopped looking -- we are probably just more diligent shoppers."
(Reporting by Clara Ferreira-Marques; Editing by Jon Loades-Carter)
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