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Trended Data Good for Super Bowl Predictions and Consumers

Published: January 25, 2016 by Kerry Rivera

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Who will take the coveted Super Bowl title in 2016? Now that we’re down to the final two teams, the commentary will heighten. Sportscasters, analysts, former athletes, co-workers … even your local barista has an opinion. Will it be Peyton Manning’s Denver Broncos or the rising Carolina Panthers?

Millions will make predictions in the coming weeks, but a little research can go a long way in delivering meaningful insights.

How have the teams been trending over the season? Are there injuries? Who is favored and what’s the spread? Which quarterback is leading in pass completions, passing yards, touchdowns, etc.? Who has been on this stage before, ready to embrace the spotlight and epic media frenzy?

The world of sports is filled with stats resulting from historical data. And when you think about it, the world of credit could be treated similarly.

Over the past several years, there has been much hype about “credit invisibles” and the need to “score more.” A traditional pull will likely leave many “no-file” and “thin-file” consumers out, so it’s in a lender’s best interest to leverage alternative scoring models to uncover more.

But it’s also important to remember a score is just a snapshot, a mere moment in time. How did a consumer arrive to that particular score pulled on any given day? Has their score been trending up or down? Has an individual been paying off debt at a rapid pace or slipping further behind?

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Two individuals could have the exact same score, but likely arrived to that place differently.

The backstory is good to know – in sports and in the world of credit.

Trended data can be attached to balances, credit limits, minimum payment due, actual payment and date of payment.

By assessing these areas on a consumer file for 24 months, more insights are delivered and lenders can take note of behavior patterns to assist with risk assessment, marketing and share-of-wallet analysis.

For example, looking closer at those consumers with five trades or more, Experian trended data reveals:

  • 27% are revolvers, carrying balances each month
  • 27% are transactors, paying off large portions, or all of their balances
  • 9% are rate surfers, who tend to frequently transfer balances to credit cards with 0% or low introductory rates.

Now these consumers can be viewed beyond a score. Suddenly, lenders can look within or outside their portfolio to understand how consumers use credit, what to offer them, and assess overall profitability. In short, trended data provides a more detailed view of a borrower’s historical credit performance, and that richness makes for a more informed decision.

Without a doubt, there is power in the score – and being able to score more – but when it comes time to place your bets, the trended data matters, adding a whole new dimension to an individual’s credit score. Place your wagers accordingly.

As for who will win Super Bowl 2016? I haven’t a clue. I’m more into the commercials. And I hear Coldplay is on for the half-time show. If you’re betting, best of luck, and do your homework.

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To better understand a consumer's credit behavior over time, financial institutions must leverage trended data.

Published: March 11, 2024 by Guest Contributor

Today’s changing economy is directly impacting consumers’ financial behaviors, with some individuals doing well and some showing signs of payment stress. And while these trends may pose challenges to financial institutions, such as how to expand their customer base without taking on additional risk, the right credit attributes can help them drive smarter and more profitable lending decisions. With Experian’s industry-leading credit attributes, organizations can develop precise and explainable acquisition models and strategies. As a result, they can: Expand into new segments: By gaining deeper insights into consumer trends and behaviors, organizations can better assess an individual’s creditworthiness and approve populations who might have been overlooked due to limited or no credit history. Improve the customer experience: Having a wider view of consumer credit behavior and patterns allows organizations to apply the best treatment at the right time based on each consumer’s specific needs. Save time and resources: With an ongoing managed set of base attributes, organizations don’t have to invest significant resources to develop the attributes themselves. Additionally, existing attributes are regularly updated and new attributes are added to keep pace with industry and regulatory changes. Case study: Enhance decision-making and segmentation strategies A large retail credit card issuer was looking to grow their portfolio by identifying and engaging more consumers who met their credit criteria. To do this, they needed to replace their existing custom acquisition model with one that provided a granular view of consumer behavior. By partnering with Experian, the company was able to implement an advanced custom acquisition model powered by our proprietary Trended 3DTM and Premier AttributesSM. Trended 3D analyzes consumers’ behavior patterns over time, while Premier Attributes aggregates and summarizes findings from credit report data, enabling the company to make faster and more strategic lending decisions. Validations of the new model showed up to 10 percent improvement in performance across all segments, helping the company design more effective segmentation strategies, lower their risk exposure and approve more accounts. To learn how Experian can help your organization make the best data-driven decisions, read the full case study or visit us. Download case study Visit us

Published: November 14, 2022 by Theresa Nguyen

As more consumers apply for credit and increase their spending1, lenders and financial institutions have an opportunity to expand their portfolios and improve profitability. The challenge is ensuring they’re extending credit responsibly and inclusively. Millions of Americans, many of whom are creditworthy, lack access to mainstream credit options. This may be because they have limited or no credit history, negative information within their credit file, or are a part of a historically disadvantaged group. To say “yes” to consumers they otherwise couldn’t or wouldn’t lend to, lenders must gain a deeper understanding of an individual’s stability, ability and willingness to pay. That’s where expanded FCRA-regulated and trended data come in. While traditional credit data has long been the primary means of gauging creditworthiness, it doesn’t tell the full story of a consumer’s financial situation. Let’s explore how differentiated data can help lenders make more informed credit decisions. Using differentiated data for deeper lending Expanded FCRA-regulated data provides supplemental credit data to help lenders gain a more holistic view of their current and prospective customers. Some examples of expanded FCRA-regulated data include alternative financial services data from nontraditional lenders, consumer-permissioned account data, rental payments and full-file public records. Because this data drives greater visibility and transparency around inquiry and payment behaviors, lenders can more accurately determine a consumer’s ability to pay and distinguish between reliable and high-risk applicants. In turn, lenders can approve more creditworthy consumers, grow their portfolios and increase financial opportunities for underserved communities, all while preventing and mitigating risk. 89% of lenders agree that expanded FCRA-regulated data allows them to extend credit to more consumers. Trended data empowers lenders with predictive insights into consumers by providing key balance and payment data for the previous 24 months. This is important as lenders can determine if a consumer’s credit behavior has improved or deteriorated over time. In turn, lenders can: Identify creditworthy customers: Establish if a consumer has a demonstrated ability to pay, is consistently paying more than the minimum payment, or shows no signs of payment stress. Increase response rates: Match the right products with the right prospects. Determine upsell and cross-sell opportunities: Present relevant offers based on anticipated needs and behaviors. Limit loss exposure: Understand the direction and velocity of payment performance to effectively manage risk exposure. Trended data helps lenders better predict future behavior, manage portfolio risk and design the best marketing offers. Turning insights into action Together, trended and expanded FCRA-regulated data benefit lenders and consumers alike. With a more holistic view of their customers, lenders gain powerful insights to lend deeper, ultimately helping them to expand their portfolios and drive greater access to credit for underserved communities. Learn more 1 The Recovery of Credit Applications to Pre-Pandemic Levels, Consumer Financial Protection Bureau, 2021.

Published: March 8, 2022 by Theresa Nguyen

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