Profile: Equifax Inc (EFX)
11 Mar 2014
Equifax Inc., incorporated on December 20, 1913, is a provider of information solutions for businesses and consumers. The Company’s clients and customers include financial institutions, corporations, governments and individuals. Its products and services are based on databases of consumer and business information derived from various types of credit, financial, employment, income, public record, demographic and marketing data. The Company operates in five segments: U.S. Consumer Information Solutions (USCIS), International, Equifax Workforce Solutions, North America Personal Solutions and North America Commercial Solutions. It also provides human resources business process outsourcing services. On February 6, 2013, Nationstar Mortgage Holdings Inc acquired Equifax Settlement Services Holding, LLC from the Company. In July 2013, Equifax Inc. announced it has acquired TrustedID. In January 2014, Equifax Inc announced the acquisition of TDX Group.
The Company is also a provider of payroll-related and human resources business process outsourcing services in the United States. The Company operates in three regions: North America (the United States and Canada), Europe (the United Kingdom, Spain and Portugal) and Latin America (Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Paraguay, Peru and Uruguay). It also maintains support operations in the Republic of Ireland, Chile and Costa Rica. It has an investment in the consumer and commercial credit information company in Brazil and offers credit services in Russia and India through joint ventures.
USCIS provides consumer information solutions to businesses in the United States, including online consumer information, decisioning technology solutions, fraud and identity management services, and portfolio management services (OCIS), mortgage reporting and settlement solutions, and consumer financial marketing services (CFMS). OCIS products are derived from multiple large databases of consumer information that it maintains about individual consumers, including credit history, current credit status, payment history and consumer address information. Its customers utilize the information it provides to make decisions for a range of financial and business purposes, such as whether, and on what terms, to approve auto loans or credit card applications, whether to allow a consumer to open a new utility or telephone account, and cross-selling additional products to existing customers. It also offers analytical and predictive services based on the information in the consumer databases. OCIS customers access products through a range of electronic distribution mechanisms, including direct real-time access.
The Company’s Mortgage Solutions products, offered in the United States, consist of credit reports that combine information from the three consumer credit reporting agencies (Equifax, Experian Group and TransUnion LLC) into a single merged credit report in an online format, commonly referred to as a tri-merge report. Mortgage lenders use these tri-merge reports in making their mortgage underwriting decisions. It also offers various triggering services designed to alert lenders to changes in a consumer’s credit status during the underwriting period and securitized portfolio risk assessment services for evaluating inherent portfolio risk. It also offers certain mortgage settlement services, such as appraisal, title and closing documentation, with certain of these services provided through agreements with third parties.
The Company’s CFMS products utilize information derived from consumer information, including credit, income, asset, liquidity, net worth and spending activity, which also support many of its OCIS products. It also provides account review services, which assist its customers in managing their existing customers and prescreen services. Customers for these products primarily include institutions in the banking, brokerage, retail, insurance, and mortgage industries, as well as companies primarily focused on digital and interactive marketing.
The International operating segment includes its Canada Consumer, Europe and Latin America business units. These business units offer products that are similar to those available in the USCIS operating segment, and to a lesser extent its North America Commercial and Personal Solutions segments. These products generate revenue in Argentina, Canada, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Paraguay, Peru, Portugal, Spain, the United Kingdom and Uruguay. It also maintains support operations in the Republic of Ireland, Chile and Costa Rica.
Canada Consumer offers products derived from the credit information that the Company maintains about individual consumers. It offers many products in Canada, including credit reporting and scoring, consumer marketing, risk management, fraud detection and modeling services. Its European operation provides information solutions, marketing and personal solutions products. Information solutions and personal solutions products are generated from information that it maintains and include credit reporting and scoring, asset information, risk management, fraud detection and modeling services. Most of these products are sold in the United Kingdom with a more limited set of information solutions products sold in Portugal and Spain. Its commercial products, such as business credit reporting and commercial risk management services, are only available in the United Kingdom Marketing products, which are similar to those offered in its CFMS business unit, are primarily available in the United Kingdom and, to a lesser extent, in Spain.
The Company’s Latin American operation provides consumer and commercial information solutions products and marketing products. It offers a range of products, generated from credit records that it maintains, including credit reporting and scoring, decisioning technology, risk management, identity verification and fraud detection services. It also offers various commercial products, which include credit reporting, decisioning tools and risk management services, in the countries it serves. The Company also provides a variety of consumer and commercial marketing products generated from its credit information databases, including business profile analysis, business prospect lists and database management. The countries in which it operates include Argentina, Chile, Costa Rica, Ecuador, El Salvador, Honduras, Paraguay, Peru and Uruguay.
TALX Workforce Solutions
TALX Workforce Solutions operates in the United States through two business units, Verification Services and Employer Services. Verification Services include employment, income and social security number verification services. Its online verification services enable employers to direct third-party verifiers to its work number database to verify the employee’s employment status and income information. The Company also offers an offline research verification service, which expands employment verification to locate data outside its existing work number database. Employer Services offers a range of services, including assisting with employment tax matters; services designed to research the availability of employment-related tax credits (example, the federal work opportunity and welfare to work tax credits and state tax credits), process the necessary filings and assist the customer in obtaining the tax credit; W-2 management services (which include initial distribution, reissue and correction of W-2 forms); paperless pay services that enable employees to electronically receive pay statement information, as well as review and change direct deposit account or W-4 information; integrated electronic time capture and reporting services; paperless new-hire services to bring new workers on board using electronic forms; I-9 management services designed to help clients electronically comply with the immigration laws that require employers to complete an I-9 form for each new hire; and planning talent recruitment and management through electronic-based psychometric testing and assessments, as well as onboarding services using online forms to complete the new hire process for employees of corporate and government agencies.
North America Personal Solutions
The Company’s Personal Solutions products give consumers information to make financial decisions and monitor and protect credit, credit score and identity information through its Equifax Complete, ID Patrol, Credit Watch and Score Watch monitoring products. Consumers can obtain a copy of credit file information about them and their credit score. It also offers monitoring products for consumers who are concerned about identity theft and data breaches, including the Credit Report Control service that allows consumers subscribing to its credit monitoring products to restrict access to their credit report to mitigate unauthorized use of Equifax credit file information by third parties. Its products are available to consumers directly and through relationships with business partners who distribute its products or provide these services to their employees or customers.
North America Commercial Solutions
The Company’s Commercial Solutions products are derived from databases of credit, financial and marketing information regarding businesses in the United States and Canada. Databases it has compiled include loan; credit card; public records and leasing history data; trade accounts receivable performance, and Secretary of State and Securities and Exchange Commission registration information. It also offers scoring and analytical services that provide additional information to help mitigate the credit risk assumed by its customers. The Company also has a marketing database, which hosts approximately 50 million commercial demographic data records from worldwide helping companies to identify corporate family structures for enterprise visibility of customers and suppliers. In addition, it is integrating information from other databases, such as asset information. A portion of the business records included in the United States credit database has been developed in part from the Small Business Financial Exchange, Inc. (SBFE). SBFE members, including a number of commercial lending financial institutions, contribute their data to the member-owned SBFE database, which it manages and markets the data.
The Company competes with Experian, TransUnion, LifeLock, Acxiom Corporation, Harte-Hanks, Inc., infoGROUP, Inc., Fair Isaac Corporation, The Dun & Bradstreet Corporation, Cortera, Inc., Verify Jobs, First Advantage, Automatic Data Processing, Inc., Paychex, Inc., Ceridian Corporation, Barnett Associates, Thomas & Thorngren, UC Advantage, Previsor, Inc., Development Dimensions International, Brainbench, Inc., AON Corporation, Towers Watson, Right Management Consulting, Devine Group, Inc., Hogan Assessments Systems, Inc. and SHL Group plc.
# H46, 1550 Peachtree Street, N.
ATLANTA GA 30302