ID Analytics is introducing a new Credit Optics Prescreen score to evaluate consumer credit risk from unique alternative data available in real time. Credit card issuers may use the score to improve the risk targeting of marketing campaigns. In particular, the score promises to address the dynamic nature of consumers whose credit risk profiles may be in flux:
Identify the most stable prospects—identify consumers slightly below the margin, who previously would have been removed from the prescreen universe, but who are improving their credit standing and will pass credit criteria upon response/application.
Risk mitigation—identify consumers currently classified as low or medium risk, but who have recently been exhibiting increasingly risky behavior. Issuers can either reduce risk exposure by extending a more conservative offer, or remove the consumer from the universe entirely
Mercator’s recent research suggests issuers are more open to using a broader array of risk management tools and data sources in order to better assess risk in subprime and thin file segments.
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