Black History Month Q&A: TransUnion’s Tracie Anderson on Financial Health

Tell us about your career. How did you find yourself in a role at TransUnion, focusing on Inclusion?

Having spent the past decade at TransUnion, a global information and insights company, in various roles in Marketing Operations, Enterprise Sales and Mortgage Strategy, along with my prior experience at a top 20 global financial services company, I have developed a keen understanding of the financial services industry, including credit for served and underserved consumers.

Leveraging what I’ve learned along with a lifelong passion for helping marginalized communities thrive, I sought out my current role as Head of Financial Inclusion in U.S. Markets for TransUnion.  

On a personal level, why does financial inclusion matter to you? Are there any specific experiences, memories, or values you have that have shaped your commitment to serving marginalized populations?

Growing up in a working-class, under-resourced neighborhood, I witnessed firsthand the struggles my parents faced managing our household finances on their low-income, manual labor jobs. They, like most parents, dreamed of a better life for my sister and me. They sought economic mobility to give us the opportunity to grow up and afford our needs, save for the future and enjoy financial stability without constant stress about money – essentially becoming Financially Healthy adults.

Reflecting on my childhood, I realized that families in my neighborhood, including my own, faced significant barriers to accessing resources and opportunities that were readily available to families in middle and upper-income neighborhoods. The economic hardships were severe, contributing to a lower life expectancy in our community compared to the national average. This stark reality underscored the profound impact of financial instability and fueled my commitment to serving marginalized communities, helping them achieve equal access to opportunities needed to thrive. 

What role do financial wellness programs play in empowering marginalized communities, and how can financial organizations contribute to improving access to and the impact of these programs?

Financial wellness programs are critical to creating pathways to economic mobility and financial health. Credit is often a challenge in consumers’ financial health journey, regardless of background, but especially in communities experiencing generational poverty. Therefore, it is important when introducing these programs to apply a holistic, three-pronged approach to expanding access to credit:

• • Empower: Provide resources to help consumers understand, monitor and protect their credit history, in turn fostering trusted relationships.
  • Engage: Become known, relevant, and trusted with underbanked consumers through enriched consumer experiences.
  • Evaluate: Use trusted and holistic views of underbanked consumers for innovative, transparent, and inclusive decision-making.

This approach positions financial organizations to build bridges of trust with historically marginalized communities through providing educational resources, a positive consumer experience, and products that meet their needs. It may sound cliché, but meeting people where they are with products and services designed to meet their needs with a good consumer experience is real.   

Are there specific TransUnion programs the larger financial services community should be aware of, and how can we contribute to or amplify the success of these initiatives? How might other organizations implement these programs to ensure equity in financial services? 

TransUnion is a leading contributor to advancing financial inclusion throughout the financial services ecosystem. A few of our practices that could be helpful for others to adopt include: 

1. 1. Cultivate partnerships that expand impact. TransUnion partners with organizations such as Mobility Capital Finance (MoCaFi), Credit Builders Alliance, and Jump$tart Coalition for Personal Financial Literacy to amplify our impact in advancing financial inclusion.
   2. Embrace innovation to foster inclusion. TransUnion is committed to staying at the forefront of technological advancements and takes a responsible approach to innovation that is in line with our mission, “Information for Good.”  
   3. Drive scalable impact by enhancing products to meet more consumer needs. TransUnion’s TruIQ Innovation Lab partners financial services organizations with data scientists to address critical business needs. Some lenders have found that the outcomes of these immersive experiences amplify the impact of their financial inclusion initiatives.

What are the biggest challenges in advancing equity in financial health?

I believe the biggest opportunity and challenge in advancing equity in financial health is innovation. With the amount of data and technology at our fingertips, we can offer credit-related solutions to enable opportunities for better financial outcomes. These can lead to economic stability and mobility for more households. 

Artificial intelligence (AI) and machine learning (ML) are enhancing credit access, fraud detection, and personalized financial education. However, we must also address the challenges these innovations bring. Collectively, industry leaders must safeguard against: 

• • Biased data sources amplifying disparities in credit outcomes 
  • Heightened model complexity lessening our ability to monitor for unintended outcomes 
  • Intensified destructive fraud schemes    

TransUnion takes these challenges seriously and is committed to addressing them through robust governance and continuous improvement. We have implemented a unified data governance framework within our OneTru™ platform, which fosters legal and regulatory compliance, auditability, and the ability to revisit models as necessary. To combat biased data sources, we use a range of datasets to identify and mitigate potential biases. Our advanced AI and ML technologies are designed to enhance transparency and explainability, helping us monitor for unintended outcomes and maintain trust. 

Additionally, we leverage sophisticated fraud detection techniques, including machine learning systems and graph neural networks, to help identify and prevent complex fraud schemes. By continuously updating our governance processes and evaluation frameworks, we strive to provide solutions that not only advance financial inclusion but also protect against emerging threats.

Looking forward, how can we ensure that equity in financial health continues to be a priority in the products and services we offer to consumers? Are there specific actions the industry can take to drive meaningful change?

Open and honest dialogue with a broad set of stakeholders is critical. The Financial Health Network is a leading example of an organization committed to driving impact through creating space for stakeholder gatherings that inspire meaningful action. 

In addition to your professional work, you have been deeply involved in philanthropic efforts, serving as chairman of the advisory board for the Chicago Foundation for Women’s Willie’s Warriors Leadership Initiative and as an active member of Alpha Kappa Alpha Sorority, Inc. Through these experiences, have you observed any recurring themes around the root causes of financial insecurity in certain communities? If so, what are these themes, and how can financial service providers and decision-makers drive meaningful and equitable change?

These experiences have taught me that by building community we can all play a pivotal role in combating financial insecurity in the U.S. and across the globe. 

These organizations demonstrate that drawing from the largest pools of talent builds stronger communities for all. Therefore, I encourage leaders in the financial service ecosystem to not overlook individuals from different backgrounds in building their teams to address these issues.