Mark Begor: Well, okay. So you’re talking about like in — and you want to leave mortgage out and focus on card and P loans and auto or do you want to talk mortgage to, I’m just trying to figure out which part of verification you want to cover.
George Tong: Yes, non-mortgage, non-government.
Mark Begor: Non-mortgage, nongovernment talent.
George Tong: Yes. Talent, I guess.
Mark Begor: Yes. So we haven’t seen sensitivity to our customers around pricing in any of those verticals. Because of the value that it delivers, you got to be obviously clear that we’re balanced around pricing, but the customers are using our solution because of the productivity and accuracy and then the instant access to the information as well as the scale of the data set. We didn’t talk much on the call about our ability to continue to add records. And we’re approaching 70% of nonfarm payroll and over 50% of kind of working Americans, including 1099 and income-producing Americans, including pension, that data set is super valuable in all those verification markets. And — as you know, we also have a big focus on adding new products, which is exhibited by the Vitality Index, which a lot of that vitality — actually, most of that vitality is in verification, is really delivering new solutions that help our customers expedite or complete the transactions using our Instant data.
John W. Gamble, Jr.: And talent, I know we’ve said this many times, no one likes price increases. But for example, in talent, one of the things we do in other segments as we provide incentives for people to be able to get better pricing from us by moving to top of waterfall, or by selling additional products to drive growth across the broader sweat — I’m sorry, broader suite of our entire group of products that’s talent solutions like our education solutions and other solutions, and we’re launching now products that support health care directly. We have staffing products. We have other products that allow people to get better pricing from Equifax while helping us drive volumes through the system. So again, we — just like we don’t like price increases, we know no one likes price increases, but we try to be balanced, and we try to structure them so that people have the opportunity to purchase the products that they want at price points that are effective for them.
George Tong: Got it, thank you.
Operator: Thank you. Your next question is coming from Heather Balsky from Bank of America. Your line is now live.
Heather Balsky: Hi, thank you for taking my question. I wanted to touch on the cloud migration. So first part, it sounds like it’s lagging a little bit from what you said last quarter. I’m curious if you can help us kind of understand what’s going on with that transition and where, I guess, the headwinds have been? And then with regards to your plans with the transition, when do you think we could start seeing the benefits of that on the USIS side? Thanks.
Mark Begor: Yes. Look, cloud transformations are hard. This has been super complex and the most complex cloud transformation that we’re executing is in USIS given the age of the legacy infrastructure and formats that we had. And we’re clearly a few months behind, but we can see the finish line in completing it. As we said earlier, we’re migrating large customers, as we speak, in the fourth quarter. Those will continue in the first quarter, and we’d expect to be complete with USIS as well as many of our international platforms in the early parts or first half of 2024. And that’s a big pivot point, as you point out. When are we going to start seeing the benefits? We’re starting to see it. And what we saw in EWS is what we would expect to see in USIS.
And we talked earlier about EWS’ ability to drive new product rollouts at a very rapid pace, well above our 10% goal at the 20% plus. We would expect USIS to grow their vitality index, which today is south of 10 and move towards 10. And I think we mentioned they’ve grown their vitality about 100 basis points. We also mentioned, and we’ve talked about it on calls really for the last four years, but in the last couple of calls, that in USIS in particular, because of the ability to deliver always-on stability, the ability to have faster data transmission and then obviously leveraging our differentiated data, we do expect in USIS to get some share gains. And that really comes forward, where we move from a tertiary position to a second or primary position.
And we had one large FI in the U.S., which is where USIS is, obviously, that’s making that move with us because of the cloud. So we would expect more of those to come forward as we complete the cloud in 2024 and then really between share gains and new product rollouts that to help drive USIS’ growth rates in 2024 and 2025 and beyond.
Heather Balsky: And can I ask a follow-up. Just when you talk about share gains, how should we think about it, are you taking business from other creditors or is it expanding the wallet and benefiting that way?
Mark Begor: No. When you talk about share gains, it’s what you would think a share gain is, is where we’re moving from secondary to primary or tertiary to secondary because of the cloud. And having the most advanced technology, we think, is an advantage. That’s one of the reasons we embarked on this is at our gut, we believe, to be a great data analytics company, a great technology company. And when you overlay the digital macro of our customers doing the vast majority of their transactions with their consumers online, you have to delivered 99 [ph] to stability. You can’t do that in the legacy environment. You can only do with cloud, and you have to have that for data transmission. So we think that’s going to advantage Equifax going forward.
And then you lay on top of it, you’d be able to roll out new solutions more quickly and more of them. That’s going to be advantaged to Equifax to become a more important partner that will drive us up from those secondary positions that could be 20% or 30% of the volume to the primary positions, which could be 60%, 70%, 80%. And that’s really what we have in front of us from the cloud investment, and we would expect those benefits to roll the USIS. And one last point that we mentioned is getting USIS cloud native will also allow us to do more between EWS and USIS. That was hard pre-cloud in two legacy environments with different data sets that are in different data environments. As you know, we went to a single data fabric and having them both in the cloud, that’s going to be another gear for us going forward to have data combination solutions between USIS and EWS that was really hard to do before.
And of course, only we can do that between credit data and the other differentiated data in USIS in combination with the income and employment data that’s really only Equifax.
Operator: Thank you. We reached the end of our question-and-answer session. I’d like to turn the floor back over for any further or closing comments.
Trevor Burns: Yes, it’s Trevor Burns. If you have any follow-up questions, please reach out to me and Sam. Otherwise, have a great day. Thank you.
Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.
