COSTA MESA, Calif. — Experian unveiled the industry’s first tri-bureau trended attributes, which are aimed at giving finance sources a wider view into consumer credit behavior and patterns over time. Ultimately, this helps them expand into new risk segments and better tailor credit offers to meet consumer needs.
An Experian analysis shows that custom models developed using Trended 3D attributes provide up to a 7% lift in predictive performance when compared with models developed using traditional attributes only, Experian officials claim.
“While trended data has been shown to provide additional insight into a consumer’s credit behavior, lack of standardization across different providers has made it a challenge to gain those insights,” said Steve Platt, Experian’s group president of decision analytics and data quality. “Trended 3D makes it easy for our clients to get value from trended data across all three credit bureaus in a consistent manner, so they can make more informed decisions across the credit life cycle and, more importantly, give consumers better access to lending options.”
Experian’s Trended 3D attributes help lenders unlock valuable insights hidden within credit reports. For example, two people may have similar balances, utilization and risk scores, but their paths to that point may be substantially different. The solution synthesizes a 24-month history of five key credit report fields — balance, credit limit or original loan amount, scheduled payment amount, actual payment amount and last payment date. Lenders can gain insight into:
- Changes in balances over time
- Migration patterns from one tradeline or multiple tradelines to another
- Variations in utilization and credit limits
- Changes in payment activity and collections
- Balance transfer and debt consolidation behavior
- Behavior patterns of revolving trades versus transactional trades
Additionally, Trended 3D leverages machine learning techniques to evaluate behavioral data and recognize patterns that previously may have gone undetected, according to Experian officials.