Press Release
EQUIFAX INTRODUCES SUPERIOR CREDIT SCORING POWER FOR CONSUMER LENDERS
Revolutionary new bureau scores tackle changing dynamics of consumer credit market
London - 11th January 2010 - Leading credit intelligence expert, Equifax, is addressing the challenges currently facing the consumer credit market. By thinking differently, Equifax has identified a new approach to using credit bureau data, with a new range of scoring products that set the benchmark for credit decisioning.
Building on its 30 years of experience in developing market-leading Risk Navigator scores, Equifax is launching the all new RN4 family of scores. Built using the largest-ever sample of credit records, and a greater depth of data than ever before RN4 provides lenders with a significantly improved level of predictability and risk management, both for account opening and account management. In fact, with a complete re-development carried out by the innovative Equifax Predictive Sciences team, RN4 has already been proven capable of delivering up to a 22% increase in risk predictive power at the account opening stage.
"There is considerable pressure for lenders to extend credit to stimulate the economy", confirmed Sandra Lawrence, General Manager, Equifax. "But obviously they want to be able to do this with tight risk controls in place. RN4 meets this challenge head-on. The breadth of data - and its recency - means lenders can have real confidence that the scores will enable them to measurably improve on increasing accept rates whilst maintaining bad debt rates, or reducing bad debt rates whilst maintaining accept rates.
"What we think really sets RN4 apart from all other bureau scores is the fact that it introduces the first ever high-performance scores for specific sectors of the consumer credit marketplace".
There are 6 new RN4 Market Specific scores:
- Revolving (for credit cards and store cards)
- Fixed Term (for loans and hire purchase)
- Telecoms
- Home Shopping
- Mortgages
- Current Accounts
These Market Specific scores of RN4 directly respond to the changing dynamics of the consumer credit and lending marketplace. They also give lenders the ability to demonstrate that credit decisions were made using scorecards that are fit for purpose, which is crucial to comply with TCF (Treating Customers Fairly) regulations.
Whilst in the analysis phase, we identified a number of key differences in attribute behaviour across different sectors, and also saw more differences in general behaviours that challenged some of the conventions of older scorecards" continued Kieron O'Neill, Equifax Predictive Sciences. "There is no question that today's bureau scores have to be aligned to meet the specific needs of specific sectors. Our analysis shows that whilst a non-sector specific Risk Navigator score performs well across multiple markets, by developing market-specific solutions we can deliver a predictive power uplift of up to 22%",. This means Equifax can significantly reduce the risk of bad debt, whilst enabling lenders to respond responsibly to consumer demand for new credit.''
Equifax has used a massive volume of consumer credit records, greater than any one lender would ever have access to, in order to create RN4 and the unique Market Specific scores.
"Our tailored approach to bureau scores, completely re-developing them as opposed to just updating previous scores, means lenders can make quicker and more accurate decisions, which enhance profits, reduce waste and improve cash flow performance" concluded Sandra Lawrence. "RN4 is part of our ongoing commitment to data quality, analytical strength and understanding, as we continue to deliver innovative credit scoring solutions that meet the needs of our customers."
For further press information please contact: Wendy Harrison, Cecile Stearn, Margot Tomkinson or Jenny Staniforth at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: wendy@harrisonsadler.com