Experian Introduces the Credit Union Risk Model; New Tool is Superior to Generic Risk Models for Evaluating Creditworthiness

Business Wire, Jan 11, 2001

Business Editors & High-Tech Writers

ORANGE, Calif.--(BUSINESS WIRE)--Jan. 11, 2001

Experian, a leading provider of global information solutions, Thursday announced the launch of its Credit Union Risk Model.

Designed specifically for credit unions, this new statistically based risk assessment tool can be used in the evaluation of both new and existing customers in all phases of the customer account life cycle.

"Our Credit Union Risk Model is a tailored solution created in response to the need for an industry-specific credit risk tool that is superior to generic risk models," said Kip Horney, vice president of sales at Experian.

"Credit unions are often forced to use generic models because they can't afford to develop custom models. Our Credit Union Risk Model is a more predictive instrument because it was specifically developed to accurately predict risk on credit union accounts."

The Credit Union Risk Model provides empirically derived scores based on a 24-month performance period to assist credit unions in the determination of a consumer's creditworthiness. By analyzing a consumer's entire credit profile and summarizing that data into a score (from 1 to 999 -- the lower the score, the higher the risk), the Credit Union Risk Model rank-orders consumers by their potential risk for serious deliquent or derogatory behavior ( 90 days past due) on a credit union account.

"Experian's Credit Union Risk Model is unique in the industry because its performance outcome focuses only on credit union tradelines," said Horney.

"Other non-industry-specific risk models predict performance outcome on any type of tradeline. The Credit Union Risk Model is able to capture the nuances in the data unique to credit unions. As a result, the Credit Union Risk Model has the ability to identify and approve more low-risk accounts, which reduces bad debt and increases overall profitability."

The Credit Union Risk Model can be strategically combined with Experian's Bankruptcy Watch, a bankruptcy tool that identifies high bankruptcy risk applicants. Using both tools together allows credit unions to identify and approve more low risk accounts and reduce potential bankruptcies in the same process. This provides reduced risk, increased profits and improved management control.

The Credit Union Risk Model is one of a suite of Credit Union Solutions from Experian that includes list services, prescreen programs, collections and risk/fraud management tools, which has been specifically tailored and bundled exclusively for credit unions to address all stages of the member life cycle.

Experian is an information solutions company. It uses the power of information to help its clients target prospective customers, manage existing customer relationships and identify opportunities for profitable growth. Experian is a subsidiary of The Great Universal Stores PLC and has headquarters in Nottingham, U.K. and Orange. Its 12,000 people support clients in more than 50 countries. Annual sales are about $1.5 billion.

For more information, visit the company's Web site at www.experian.com.