These 'Customer Value Management' (CVM) models are a unique collection of analytical scores and values, segmentation systems and propensities that can be flexibly combined by lenders to inform a multitude of credit risk, up sell and cross sell
A first in the UK, these groundbreaking models are based on real reported data on Experian's Consumer Bureau, which holds more than 500 million records on over 45 million consumers, combined with the lenders own applicant data and calculated in real time.
The models help lenders to understand their customers in terms of their credit history, indebtedness, rate of change of indebtedness, credit life stage, their ability to afford further credit, their disposable income and credit commitments, attitude to credit, their propensity to use certain products and their propensity to take other offers. As a result, lenders can ensure the products, introductory terms and credit limits they offer are
appropriate to the consumer's income, expenditure, preferences and ability to afford. The models can also be used as an additional means of driving collections strategy to separate those who clearly have disposable income, from those whom pursuing would be fruitless.
Steve Kilmister, Managing Director of Experian's Consumer Business, said: "The significance of these new models to lenders of all kinds is immense and they will transform credit decisioning as we know it today. Experian is the only company that has the depth and range of consumer data and marketing and credit expertise required to launch such advanced Models. They are the next generation of customer decisioning, delivering better and more predictive decisions and greater value at the same time as minimising risk.
"At a time when lenders need to understand their customers more, while having less and less contact with them, these Models provide the tools to make better and more profitable decisions, whilst providing new opportunities for cross sell and up sell".
These 16 new CVM models from Experian are the first in a series of new models that will be released over the coming months, and are a valuable extension to Experian's Delphi for New Business Risk Scores and the Consumer Indebtedness Index (CII), an aid to help tackle consumer indebtedness.