First Data electronic commerce and payment processing announced Equifax is set offer its ” Confidence Score” solution alternative scoring tool that provides access to hard-to-locate information on sub-prime, thin-file, and no credit score consumers. The First Data “Confidence Score” solution will help Equifax’s financial institution clients to identify new account applicants who have low credit scores or little credit history and to facilitate new account opening and review decisions. Each new account applicant is screened and assigned a score between 1 and 999.
Global information solutions leader Equifax and FICO, the leading provider of predictive analytics and decision management technology, announced their agreement to develop new analytics for the UK market. These analytics will complement Equifax’s RN4 suite of risk scores, further helping credit granters reduce losses while extending more credit based on a comprehensive evaluation of each consumer’s risk. FICO will develop UK-specific versions of its FICO® Credit Capacity Index™ and FICO® Economic Impact Index, both based on robust data from Equifax. Worldwide, the two companies deliver a combined volume of scores greater than any other company. The FICO® Economic Impact Index will help lenders understand how future economic fluctuations may affect a consumer’s Equifax RN4 credit score. The patent-pending analytic will indicate the projected positive/negative impact on a specific Equifax RN4 score range based on selected economic forecasts.
Equifax and Fico partnered to enhance the latter’s “Triad Customer Manager,” integrating it with the former’s “Customer Insights” service. This first solution from the companies’ expanded partnership will allow lenders and card issuers to improve predictions of customer risk and behaviour and make more profitable credit management decisions. Equifax’s “Customer Insights” offering, banks, card issuers and retailers using “FICO TRIAD” Customer Manager can easily integrate a comprehensive range of customer-level data into their credit decision strategies. With the FICO “TRIAD Customer Manager,” it lets financial organisations improve credit decisions on which credit offers to make to which customers, what over-limit transactions to authorise, how to treat early-stage delinquencies in collections, and how to manage customers’ credit limits.
New bankcard growth is on its way back up, with year-over-year (YOY) total number of originations (Feb. 2011 vs. Feb. 2010) up by more than 28%. Notable within the data is that lenders continue to expand the subprime category with Feb. 2011 subprime bankcard originations up by more than 75% over Feb. 2010 numbers, and total new subprime bankcard credit up by more than 66%. These findings, according to the Equifax “April National Credit Trends Report,” also shows new bankcard credit limits are increased by more than 27% YOY; individual new bankcard average credit limit decreased slightly from the previous year (Feb. 2011 average of $4,008 vs. Feb. 2010 average of $4,086; and the average subprime bankcard credit limit has decreased slightly from $1,025 (Feb. 2010) to $977 (Feb. 2011).
FICO analytics and decision management technology has extended a multi-year agreement with Equifax Canada to distribute its “BEACON” Score to lenders and other businesses. This commit the two firms to release an updated version of “BEACON” and to develop other innovative analytic solutions for the Canadian credit market.The newest version of BEACON(R) is expected to become available in the Canadian market later this year and will incorporate many of the latest FICO analytic advances.
Cintas Corporation and Equifax announced submissions are open for the inaugural “Shred Your Debt” contest. U.S. citizens 18 years and older can enter for a chance to win $2,000 to pay down their debt and a trip to Atlanta to receive financial coaching from a nationally recognized personal finance expert. To enter, contestants must describe their financial situation, why they deserve to win and submit an optional image that demonstrates their current or ideal financial state, for which a panel of judges from Cintas Document Management, the NFCC and Equifax will select the grand prize winner. The prize package includes two roundtrip airfare tickets and a two-night stay in Atlanta. To ensure long-term success, the winner will also receive free additional financial counseling sessions from an NFCC Member Agency and Equifax’s Debt Wise™ product, a do-it-yourself resource that enables users to prioritize their bills and save money on interest to get out of debt faster.
FICO’s credit score will now be available in Equifax ABS Credit Risk Insight. Equifaxâs incorporation of the FICO score into ABS Credit Risk Insight allows investors to track borrowersâ FICO scores across the life of loans from origination to securitization. The resulting insight will help investors make more informed decisions, increase transparency, track borrower credit quality, and improve default predictability. Now investors who use Equifax ABS Credit Risk Insight will benefit from the consistency of a single credit score across a portfolio, allowing better understanding of portfolio risk including how changes in borrower risk might affect the overall portfolio. FICO’s Decision Management solutions combine trusted advice, world-class analytics and innovative applicationsto automate, improve and connect decisions for clients in 80 countries.
Equifax individual and household marketing data is now being made available to retailers on the 1010data analytics platform to combine internal transactional data with Equifax’s extensive marketing data. This partnership is designed to help retailers improve store site selection, merchandising, inventory effectiveness, product level assortments, promotional planning, as well as help improve customer loyalty programs. No longer forced to make decisions based on limited information, Equifax Marketing Data Suites offers marketers a much deeper view into consumers across financials, demographics, purchases, lifestyles, and life events. 1010data offers a data and analytics platform with a complete approach to performing the deepest analysis and getting the maximum insight directly from raw data.
Equifax individual and household marketing data is now being made available to retailers on the 1010data analytics platform to combine internal transactional data with Equifaxâs extensive marketing data. This partnership is designed to help retailers improve store site selection, merchandising, inventory effectiveness, product level assortments, promotional planning, as well as help improve customer loyalty programs. No longer forced to make decisions based on limited information, Equifax Marketing Data Suites offers marketers a much deeper view into consumers across financials, demographics, purchases, lifestyles, and life events. 1010data offers a data and analytics platform with a complete approach to performing the deepest analysis and getting the maximum insight directly from raw data.
GA-based alternative payment provider Moneta has entered into an
agreement with Equifax for instant credit decisioning. Moneta currently
offers an easy-to-use online payment method that allows customers to fund
online purchases directly from a bank account, without disclosing their
personal financial information to the merchant. The instant credit feature,
scheduled for release in early 2010, will extend the funding options of
Moneta payments to include the extension of transactional credit for online
purchases, in real-time. Merchants accepting Moneta payments may now offer
a range of bank-sponsored funding options to their customers including
checking, savings, money market and now instant transactional credit lines
underwritten by the sponsoring bank.
The latest figures reveal the number of bankcard accounts opened in
September was 45% lower than one-year ago. Also, the percent of cards
issued to those with credit scores greater than 740 grew from about 30%
in 2007 to almost 51% so far this year. According to Equifax’s “Credit
Trend Report” year-to-date, the number of new accounts is down 46% from
the same period in 2008. According to CardWatch.com, the number of net
new accounts opened by the nation’s largest issuer, Chase, declined from
3.6 million for 3Q/08 to 2.4 million for 3Q/09. In the fourth quarter of
last year Chase opened 4.3 million net new accounts, but it collapsed to
2.2 million in the first quarter. Equifax says bankcard issuers
continued a year-long trend of closing accounts and reducing credit
lines. Card risk management programs have accelerated since July of
2008, reducing card credit lines by $803 billion and the number of
accounts by 93 million.
Sep 08: 4.3 million
Oct 08: 4.4 million
Nov 08: 4.5 million
Dec 08: 4.4 million
Jan 09: 2.3 million
Feb 09: 2.2 million
Mar 09: 2.1 million
Apr 09: 2.0 million
May 09: 2.0 million
Jun 09: 2.1 million
Jul 09: 2.1 million
Aug 09: 2.2 million
Sep 09: 2.2 million
Source: Equifax and CardWatch.com
Equifax has introduced a new product suite for credit issuers and lenders to assess consumers ability to pay. Equifax enables a timely and holistic view of consumers’ “ability to pay” by offering specific measures to complement a firm’s own risk management data and strategies. Firms can take advantage of these solutions today, including: the “IXI Ability to Pay Index and the Credit Capacity Index; Income and Employment Verification with The Work Number Income: Employer provided, verified income at the individual level and “IXI Income360”: Estimated total household income including income from wages and income generated from invested assets, continuous up to $2M; “Equifax Personal Income Model”: Estimated individual income; “Equifax IRS Direct”: Verify income using the IRS’s Form 4506-T; the “Equifax Credit Report”
and the “IXI Discretionary Spending Index and Discretionary
Spending Dollars”: Estimated household discretionary spending,
exclusive of non-discretionary expenses, provided as a dollar amount or
index. The suite also provides analytic evaluation of more than 100 debt and income relationships, real time or batch delivered.