ID Analytics recently rolled out a tool specifically tailored for finance companies looking to buy a little deeper while still having solid footing with its underwriting.
The Symantec company and consumer risk management provider recently announced Credit Optics Full Spectrum Auto, a new version of its credit score designed specifically to address the needs of the automotive financing industry by providing companies with insights that can help them extend even more compelling credit offers to applicants across the credit spectrum.
The company explained Credit Optics Full Spectrum Auto can distinguish itself from more limited alternative credit solutions by delivering a more complete understanding of credit worthiness on applicants from no-hits to thick-files, subprime to super-prime, helping finance companies to extend more competitive offers and ultimately book more retail installment contracts.
To accomplish this goal, ID Analytics said that it leverages a powerful and uncorrelated assessment of consumer credit risk using event and performance data found in ID Analytics’ ID Network, one of the nation’s largest networks of cross-industry consumer behavioral data. The ID Network can provide deeper insights from data not typically analyzed in traditional credit scores, including transaction data from wireless, cable and utility accounts; online marketplace, payday and subprime lending and other credit-relevant alternative data sources.
To illustrate how a score that looks at both traditional and alternative credit data can reveal a substantial difference in risk within a bureau score band, ID Analytics analyzed a group of prime auto finance applicants with traditional credit scores of 750 and higher. When these applicants were scored using Credit Optics Full Spectrum Auto, the company discovered a significant separation of risk among what are considered excellent credit applicants — with the riskiest 20 percent being more than nine times higher than the lowest risk consumers within the super-prime score band (applicants with 750 scores).
In a rigorous regulatory environment, ID Analytics said credit risk solutions often struggle to meet the evolving demands of financial regulators without compromising performance. ID Analytics shared that it has spent years innovating new techniques designed to help lenders meet their regulatory requirements while minimizing trade-offs on score performance.
“In an increasingly competitive market, Credit Optics Full Spectrum Auto helps lenders gain the insights needed to stay ahead of the competition,” said Ajay Nigam, chief executive officer of ID Analytics.
“Conventional credit scores typically provide only a partial view of consumer behavior and its associated risk,” Nigam continued. “By combining this information with alternative data, automotive lenders can enhance their underwriting strategies with the goals of extending more competitive loan terms to consumers across the credit spectrum, and increasing book-to-look ratios while minimizing their exposure to risk.”
ID Analytics’ Credit Optics Full Spectrum Auto is available today. Interested finance companies can send a message to email@example.com or go to www.idanalytics.com/industries/automotive-lending.