Equifax, Inc.

Developing an innovative consumer risk-scoring solution and revolutionizing the prediction of consumer behavior

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.

Customer:
Equifax, Inc.

Industry:
Financial Markets, Professional Services

Deployment country:
United States

Solution:
BA - Business Analytics, BA - Predictive Analytics, Smarter Planet

Overview

Equifax, Inc. is a leading consumer and commercial information solutions provider in Atlanta, employing more than 7,000 people in 18 countriesthroughout the world.

Business need:
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.

Solution:
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.

Benefits:
Projected to increase customer base and annual revenue up to 10 percent for a customer through enhanced accuracy in assessing credit risk levels

Case Study

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.
The Opportunity
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

IBM products and services that were used in this case study.

Software:
SPSS Statistics, SPSS Statistics Server

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America March 2013 IBM, the IBM logo ibm.com and SPSS are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.