TransUnion Stock Price, News & Analysis

The Q1 2022 Quarterly Credit Industry Insights Report from TransUnion highlights the impact of rising interest rates and inflation on consumer credit. Average credit card balances rose to $5,010, up 4.7% year-over-year but still 11% below pre-pandemic levels. Total credit card balances remain at $769 billion, 5.5% lower than in Q1 2020. The Credit Industry Indicator increased to 116, indicating stable credit health. However, serious delinquency rates have remained flat post-pandemic financial programs, with personal loan balances reaching a record high of $178 billion.

TransUnion's annual insurance summit revealed that significant generational differences are impacting homeownership and insurance trends in the U.S. A study noted that Millennials and Gen X have faced delays in homeownership post-Great Recession. The survey highlighted changing consumer expectations, with younger generations seeking more than basic coverage from insurers. Migration patterns prompted by the pandemic may risk insurers losing customers to out-of-state moves, particularly among younger demographics. The findings stress the evolving role of insurers as trusted advisors.

Shawn Ellis, TransUnion's International CIO, is a finalist for the Global Enterprise Chicago CIO of the Year ORBIE Awards, recognizing excellence in technology leadership. Under his guidance, the technology team has improved significantly, launching new products and implementing the first cloud-based credit bureau. His leadership has shifted the company towards a product engineering mindset, enhancing security and performance. The awards celebrate transformative technology executives driving innovation in organizations with over $1 billion in revenue.

TransUnion Study on Consumer Resiliency Amid Inflation

A recent study by TransUnion reveals significant impacts of rising inflation on non-prime borrowers, highlighting increased credit balances and delinquency rates. Credit balances rose for non-mortgage lending products, with non-prime consumers averaging $22,988 in Q1 2022. Despite this, more consumers make payments above the minimum due, showcasing resilience. Although serious delinquency rates have increased, they remain below pre-pandemic levels. The study forecasts a decrease in inflation rates through 2023, suggesting potential improvement in consumer credit behavior.

Research by Neustar, a TransUnion company, reveals that many organizations lack confidence in their ability to combat one-time passcode (OTP) fraud. A study of 300 North American fraud prevention leaders indicated that while 60% utilize OTPs due to their favorable consumer perception—72% view them as secure—fraud attacks targeting mobile channels are on the rise. Notably, 70% are investing in alternative fraud prevention technologies. Key concerns include the ability to identify high-risk phone numbers (83%) and detect scams before OTP issuance (82%).

TransUnion reported a 22.6% decrease in suspected online fraud attempts year-over-year for Q1 2022. Industries like financial services, telecommunications, and retail saw declines, while gambling, insurance, and logistics experienced increases in fraud attempts, indicating a shift in fraudster focus. The U.S. experienced a 23.1% decrease overall, with financial services seeing the largest drop at 56.6%. This highlights the need for companies to enhance customer experience while combating fraud.

TransUnion (TRU) reported a robust 32% total revenue growth for Q1 2022, reaching $921 million. Organic constant currency revenue grew by 13%, excluding the U.S. mortgage impact.

Despite an overall net income drop to $48 million (from $128 million in Q1 2021), adjusted net income increased to $179 million. The company completed the acquisition of Verisk Financial Services for $515 million, focusing on core businesses. 2022 revenue guidance was raised, anticipating organic growth of 10% to 12%.

TransUnion reports a significant rise in tenants having their rent payments reported to credit agencies, particularly among Gen Z renters. In 2022, 27% of property managers are reporting rent payments, up from 17% in 2019. The survey revealed that 77% of renters are likely to pay on time if their payments are reported. While 72% of reporting managers find the process easy, many non-reporters cite time constraints as a barrier. The trend shows Gen Z's growing influence in pushing for rent reporting as a standard practice, enhancing renters' credit opportunities.

Neustar, Inc., a TransUnion company, has partnered with Captivate LLC to enhance audience segmentation and targeting for digital-out-of-home (DOOH) advertising. This collaboration aims to improve brand advertising recall and consumer engagement by enabling brands to identify and reach high-value audiences across Captivate’s extensive network of over 23,000 displays. Utilizing Neustar’s Element One platform, brands can leverage both first and third-party data for targeted ad impressions, optimizing their advertising spending and campaign performance.