TransUnion Unveils New Credit Optics™ Plus Score
June 23, 2010
Innovative credit score boosts predictiveness while scoring all applicants
SAN DIEGO, CA –TransUnion and ID Analytics today introduced a new credit risk score – ID Analytics Credit Optics Plus – that examines conventional measures of creditworthiness, willingness and ability to pay, in combination with a new dimension, stability, in a single solution. This powerful combination provides a 360-degree view of consumer behavior and enhances the predictiveness of credit decisions, often resulting in a performance lift for lenders.
The new score takes an innovative approach to assessing creditworthiness by leveraging traditional credit bureau data with dynamic identity information within the ID Network®, the only real time, cross-industry compilation of identity information. Credit Optics Plus determines stability, a critical component of credit decisioning, by analyzing a consumer’s use of their identity elements. The synergy of combining the three primary dimensions of credit risk – willingness and ability to pay plus stability – in a single model provides direct visibility into consumer behavior.
The new Credit Optics Plus score includes TransUnion credit data such as past delinquencies, history of responsible use, debt level and utilization information along with ID Analytics’ alternative data. This combination allows TransUnion customers to augment their segmentation strategies and credit decisioning to better predict risk and reduce exposure.
“As companies seek to grow and effectively manage their portfolios in this dynamic economic environment, it is important that they supplement existing solutions with alternative risk tools that can help them mitigate risk, improve their balance sheets and increase profits,” said Cathy Madden, group vice president in TransUnion’s corporate development. “TransUnion believes the new Credit Optics Plus score will provide our customers with an in-depth solution for understanding consumer risk, regardless of the credit file’s depth.”
The new Credit Optics Plus credit score can be used to refine credit risk management practices across the entire credit spectrum. Using the new score, lenders can:
- Build effective swap-in / swap-out strategies using an alternative view to uncover patterns of consumer behavior and performance.
- Score 100 percent of applicants including thin files, no hits and the underbanked.
- fine-tune credit decisioning with industry-specific Credit Optics Plus models including auto, wireless and bankcard. A generic model is also available.
The combined solution has proven to reduce the number of delinquent or poorly performing accounts booked, while maintaining approval rates of good accounts. An example of the performance lift for lenders was seen in a dual-score analysis using a TransUnion risk score matrixed with Credit Optics Plus, which resulted in a 46 percent decrease in bad rates while maintaining approval rates (e.g. from 4.29 percent bad rates to 2.30 percent). This was based on an analysis of new bankcard application inquiries for individuals with thin consumer files (i.e. less than three accounts).
“In an environment where every lending decision is critical, organizations are seeking more progressive methods to solve an age old problem – how to weed out risky prospects while maintaining a reasonable inflow of good customers,” said Bruce Hansen, president and chief executive officer, ID Analytics. “By combining our intellectual capital and real time visibility into consumer behavior, ID Analytics and TransUnion have delivered a deeper and more predictive view into the creditworthiness of consumers.”
The ID Network includes data from over one billion consumer transactions and more than two million confirmed identity frauds. Using this unique network of identity information has proven highly valuable for ID Analytics’ customers, including leading financial institutions, retailers, healthcare companies, auto and mortgage lenders, telecommunications services, and government agencies.
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion has employees in more than 25 countries on five continents. www.transunion.com/business
About ID Analytics, Inc.
ID Analytics, the leader in on-demand identity intelligence, provides unprecedented real time visibility into the risk of individuals, protecting both organizations and consumers. ID Analytics pioneered identity scoring technology. ID Analytics combines three unique capabilities to assess risk and improve the customer experience across all consumer touchpoints: the ID Network®–the nation’s only real time, cross-industry compilation of identity information; Personal Topology™– an individual’s particular identity characteristics and their connectedness to each other; and ID Analytics’ proprietary Advanced AnalyticsSM. Leading communications, financial services, retailing, and healthcare companies, as well as multiple government agencies, trust ID Analytics to provide solutions that drive new revenue opportunities, reduce financial losses, and facilitate compliance with federal regulations. ID Analytics is based in San Diego, CA. For more information, visit www.idanalytics.com
ID Analytics is a registered trademark of ID Analytics, Inc. All other trademarks and registered trademarks are the property of their respective holders.