Equifax expects its transition to cloud and artificial intelligence (AI) technology to deliver cost savings and drive innovation in 2024 and beyond.
The global data, analytics and technology company said in a Thursday (July 18) earnings release that it is leveraging its new EFX Cloud and that 89% of its new models and scores are now being built using AI and machine learning (ML).
The firm has increased its percentage of new models and scores built using AI and ML to 89% from 85% in the first quarter, 70% in 2023 and 60% in 2022, according to a presentation released Thursday.
“We’re entering the next chapter of the New Equifax as we pivot from building the new EFX Cloud to leveraging our new cloud capabilities to drive our top and bottom line,” Mark Begor, CEO of Equifax, said Thursday during the company’s quarterly earnings call.
The technology will streamline access to the company’s proprietary data, accelerate new product development, and enable faster and more predictive model development, Begor said.
The company expects its investments in new products, data, analytics and AI capabilities to drive growth in 2024 and beyond and remains confident that it will see long-term 8% to 12% revenue growth, Begor said in the earnings release.
Equifax also reported Thursday that it saw its revenue grow 9% during the second quarter, with its Workforce Solutions non-mortgage verification solutions leading the way, according to the earnings release.
The Workforce Solutions business unit, which helps employers verify income and employment and automate payroll-related and human resource (HR) management tasks, saw second-quarter revenue growth of 5%, with Government and Talent Solutions leading 20% revenue growth in its Verification Solutions non-mortgage verification solutions.
Equifax’s U.S. Information Solutions (USIS) business unit, which provides U.S. businesses with consumer and commercial information solutions, saw 7% revenue growth during the quarter. The division saw revenue increases of 33% in Mortgage Solutions, 7% in Financial Marketing Services and 5% in Online Information Solutions.
The company’s third business unit, International, reported revenue growth that was up 17% on a reported basis and up 28% on a local currency basis. Here, the growth was led by business in Latin America and Europe.
“Our customers are strong, they have strong balance sheets, and these are important businesses for them that they want to keep growing,” Begor said during the earnings call, adding that Equifax’s differentiated solutions will help them do so.
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