ATLANTA (March 29, 2016) – LexisNexis Risk Solutions, a technology, data and analytics company, and Equifax Inc. (NYSE: EFX), a global information solutions company, announced today the launch of PowerView Score, a new, three-digit credit score tailored specifically for use in the automotive industry. The new scoring leverages alternative data sources, including telecommunications and utility payment history from Equifax and public records information from LexisNexis, to help automotive lenders identify creditworthy car shoppers.
PowerView Score will serve as a complement to traditional credit risk scores without requiring lenders to replace their existing models.
The new alliance between LexisNexis and Equifax now allows auto lenders to have one-stop access to the power of Equifax’s National Consumer Telecom and Utilities Exchange (NCTUE) and traditional credit bureau data partnered with LexisNexis Risk Solutions decisioning data. Combining this data to construct the PowerView Score has demonstrated a strong ability to be highly predictive and allows for improved risk models that can be used to support credit analysis of applicants from prime through subprime. In back-testing, the new scoring showed significant improvement in model performance across portfolios.
Notes Ankush Tewari, senior director, credit risk decisioning at LexisNexis Risk Solutions, “New credit scoring offerings like PowerView Score help more precisely underwrite traditional customers, while also supporting financial inclusion for millions of people who could not be scored using traditional data alone. Preliminary analysis shows that using PowerView Score can result not only in a measurable lift in predictive accuracy for consumers with full credit histories, but also effectively evaluate the creditworthiness of millions of consumers with little or no credit history. This allows lenders to book additional accounts without increasing their loss rates, at the same time creating vast new markets to service, resulting in increased revenue for lenders.”
“This score presents a growth opportunity to prime and nonprime lenders who want to auto decision more customers or may be considering expanding their criteria to address a broader market, “ said Equifax auto finance leader Lou Loquasto. “The alternative data capabilities of LexisNexis Risk Solutions merge perfectly with Equifax’s robust telecom and bureau data offerings to create an industry leading risk solution for auto lenders, while helping them to make more informed decisions.”
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX Group (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. RELX is a FTSE 100 company and is based in London. For more information, please visit www.risk.lexisnexis.com and www.relx.com.