Published on 26-Mar-2013
"The combination of an advanced statistical analytic solution and our unique fusion method helps our clients assess customer risk in a much more accurate and sophisticated way, which generates real value for their businesses. This capability helps to differentiate Equifax from the competition and maintain our leadership position among global credit bureaus." - Martin O’Connor, senior vice president for analytics.
Financial Markets, Professional Services
BA - Business Analytics, BA - Predictive Analytics, Smarter Planet
Equifax, Inc. is a leading consumer and commercial information solutions provider in Atlanta, employing more than 7,000 people in 18 countriesthroughout the world.
Equifax saw an opportunity to provide its corporate customers with more accurate insight into consumer behavior by using multiple data sources and combining multiple scoring models into a single risk score.
Equifax developed an innovative scoring technique fueled by advanced statistical analysis and predictive modeling to generate a new type of credit score that is a better predictor of consumer behavior.
Projected to increase customer base and annual revenue up to 10 percent for a customer through enhanced accuracy in assessing credit risk levels
Equifax, Inc. is a leading consumer and commercial information solutions
provider in Atlanta, employing more than 7,000 people in 18 countries
throughout the world. The company organizes and assimilates data on
more than 500 million consumers and 81 million businesses worldwide
using advanced analytics and proprietary technology to predominantly
create and deliver consumer credit scores for risk management. For
businesses, Equifax offers a broad array of services including consumer
and business credit intelligence, portfolio management, fraud detection,
decision technology and marketing tools. On an individual consumer level,
the company offers services to manage personal credit information and
protect their identity.
Equifax saw an opportunity to provide its corporate customers with more
accurate insight into consumer behavior by using multiple data sources
and combining multiple scoring models into a single risk score. However,
existing industry methods didn’t allow the company to address the issue
of incorporating multiple behaviors within one score. As a result, it sought a
new method for generating a new type of credit score and needed a
powerful analytics capability to fuel that effort.
What Makes It Smarter
Millions of businesses use credit scores to assess their customers or
prospects. However, traditional credit scores provide a limited view into a
consumer’s credit health because they tend to focus on only one aspect of
credit risk: the ability to fulfill repayment obligations. Equifax developed
an innovative scoring technique fueled by advanced statistical analysis
and predictive modeling to generate a new type of credit score that is a
better predictor of consumer behavior. The solution helps the company
calculate consumer risk levels by analyzing credit-related behavior such as mortgage and loan repayments, incomes, assets, demographics and bill
payments, assigning weight values for each identified risk and giving more
weight to those that are the most significant to a customer’s business and
assessment goal. The company then creates multiple scoring models
including factors such as affordability of credit and risk of bankruptcy, and
combines them to create a single overall score. Equifax can now provide a
more comprehensive, multifaceted analysis of consumer behavior
represented in one overall score.
Real Business Results
• Projected to increase customer base and annual revenue up
to 10 percent for a customer through enhanced accuracy in assessing
credit risk levels
• Improved the company’s competitive position by providing a more
comprehensive analysis of consumers’ habits, resulting
in more accurate decision making
• Boosted the decision-making capabilities of the company’s customers
by helping them predict consumer behavior more accurately
For more information
Please contact your IBM representative or IBM Business Partner.
Visit us at ibm.com/spss.
To learn more about Equifax, Inc., visit www.equifax.com.
Products and services used
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