TransUnion announced the launch of Prama, a groundbreaking suite of solutions changing how companies explore data and act on insights. Prama uses advanced technologies to harness massive underlying data assets and applies advanced analytics to give customers the ability to make better decisions, and operationalize those decisions more effectively.
The Prama portfolio will start with two flagship solutions in 2016 — Prama Insights and Prama Studio.
Prama Insights includes anonymized information on virtually every credit active consumer in the U.S. The data set leverages the power of CreditVision®
and a seven-year historical view of data, providing lenders dynamic insights that can translate into clear consumer benefits at every touchpoint. “Lenders need information to identify, connect with, and serve borrowers well — all critical components of profitable consumer credit portfolios,” said Christine Pratt, senior credit industry analyst at Aite Group. “Solutions that deliver both industry and peer benchmarks in real time and cost-effectively are very much needed and will be well received.”
The first two modules of Prama Insights are Vintage Analysis and Market Insights.
Vintage Analysis Module
The Vintage Analysis module leverages TransUnion’s detailed anonymized tradeline history of more than 200 million consumers, allowing users to view seven years of performance data on a cohort basis so they can:
- Monitor underwriting policy – View delinquency trends across various timeframes and origination cohorts, which can help risk managers adjust application scorecards and underwriting strategy to acquire accounts of acceptable risk.
- Forecast losses – Use vintage curves to project charge-offs and estimate loan loss reserves; this is valuable in general business as well as when engaging with regulators or investors.
- Calculate loan profitability – Leverage vintage performance insights to help calculate loan profitability by risk tier, determine the most appropriate credit terms and determine pricing strategy.
- Define marketing strategy – Influence market segmentation, acquisition channel definition and more via vintage performance analysis.
Market Insights Module
The Market Insights module provides quarterly views of key lending metrics at a state, regional and national level — enabling customers to access relevant benchmark trends in seconds.
The module includes nine quarters of anonymized data and a more granular understanding of delinquency rate changes by credit tier, geography, line of business and product. Customers using this information can better measure their own performance against their competition in the industry.
The first Prama Studio modules will be offered to TransUnion customers in mid-2016.