ID Analytics®, a leader in consumer risk management, announced Credit Optics Full Spectrum, the newest version of its credit score designed to give organizations a more complete, predictive picture of consumer behavior and creditworthiness.
Credit Optics Full Spectrum helps organizations make more predictive lending decisions for consumers ranging from new-to-credit to credit-active and minimize risk by combining traditional and credit-relevant alternative data with proprietary analytics. As an FCRA-compliant credit score, Credit Optics provides a highly predictive and comprehensive assessment of an individual’s creditworthiness and enables businesses to be potentially more inclusive in their lending strategy without increasing risk exposure. Credit Optics Full Spectrum is designed to function as both a stand-alone credit score and as a “companion” score to enhance the power of existing credit scores.
Conventional credit scores aren’t sufficient to address credit invisible consumers such as millennials and thin-file customers because they offer only a partial view of consumer behavior and its associated risk. Credit Optics Full Spectrum improves the credit decisioning process by leveraging cross-industry event and performance data found in ID Analytics’ ID Network®, one of the nation’s largest networks of near real-time, cross-industry consumer behavioral data.
The ID Network provides deeper insights from data not typically analyzed in credit scores, including transaction data from wireless, cable and utility accounts; online marketplace, payday and subprime lending; alternative billing methods; checking accounts; and other credit-relevant alternative data sources.
“Credit Optics Full Spectrum is an evolutionary leap forward in credit decisioning that was specifically designed to assess underserved consumers, improve decisions for mainstream consumers, and increase competitiveness of offers,” said Scott Carter, chief executive officer at ID Analytics. “Credit Optics Full Spectrum’s enhanced predictive analytics may transform the way financial services, telecommunications and automotive companies make credit decisions for years to come by allowing them to engage customers, including credit invisibles, in new ways and leverage new growth opportunities for all credit seekers.”
Key Credit Optics Full Spectrum benefits include:
- Improving Credit Risk Performance —Credit Optics Full Spectrum’s unique approach provides deeper insight into credit behaviors of prime and near-prime consumers with conventional credit scores between 650 and 800. This allows business to grow their portfolio with consumers that may appear marginal with less complete data and to offer more attractive deals to lower risk consumers. It also identifies patterns of declining credit quality before they are reflected in legacy scores, reducing risk in new account bookings and providing better portfolio management.
- Serving the Credit Invisibles —Credit Optics Full Spectrum enables organizations to expand their share of the consumer market by assessing more credit-active consumers in the U.S., including those with thin files and no data/no hit—profitable consumers lacking established credit histories. Credit Optics Full Spectrum can provide predictive scoring for 75 percent of consumers with no traditional credit score.
- Gaining Up-to-the-Minute Visibility —Unlike solutions driven by public record data which can run weeks or months behind, Credit Optics leverages the near real-time activity of the ID Network to get t I he timeliest perspective on consumer behavior.
Source: ID Analytics Press Release