Customer defaults continue to rise in today’s challenging environment. Increasing levels of unemployment and economic uncertainty leave many consumers struggling to repay their bills.
When collectors contact consumers with unpaid debt, they have no way to know which consumers will pay up and which ones will ignore their demands. If collectors could predict into which category an account would fall, they would concentrate their efforts on those with the best ability and willingness to pay.
That’s where LexisNexis® Payment Score comes in and has potential to be a game-changer. It provides a three-digit score that represents how likely a consumer is to repay their debt within the next three months. And it scores higher those consumers likely to repay the most dollars. Armed with those insights, collectors can better segment and prioritize accounts.
Whereas most propensity-to-pay models primarily rely on credit scores, Payment Score goes well beyond that boundary. Instead, it leverages 84 billion public records built from more than 10,000 sources, including many alternative data sources unrelated to credit history.
This massive amount of wide-ranging data combined with proprietary analytics is then used to create comprehensive profiles of consumers that are far more accurate than credit scores alone. Even consumers who have little or no credit history to their name can have detailed profiles that inform Payment Score.
Predictive analytics-driven technology can create a more efficient collections strategy. An accurate propensity-to-pay score can be a powerful tool for collections agencies to streamline their workflow and optimize their resources by concentrating on those accounts with the best potential ROI.
LexisNexis Payment Score can help collectors work smarter and faster. They can use it to reduce their costs and recover more revenue. Check out the video to learn more about this game-changing tool and how it can help optimize your collections process.