Financial Durability Measures

Financial Durability Score is a household-level scoring system using a 1-5 rating where a 5 represents the most financially resilient households.

Financial Durability Index provides a 1-1000 index for more detailed use in models or file appends where a more granular approach is needed.

Financial Durability Digital Targeting Segments are also offered for display, social or other online marketing programs.

Applying standard income or credit measures to consumers may not differentiate consumers likely to have the means to meet current and future financial obligations.

Financial Durability Measures combine insights to yield a more detailed analysis of a household’s financial resilience and their likelihood of being a desirable customer.

They are based on a model that analyzes the intersection of multiple financial capacity measures to provide an indicator of household financial resilience. Theses financial capacity inputs include:

• Affluence derived from an analysis of household spending power and credit utilization
• Estimated total household income based on income from wages, assets, business, and retirement funds
• Spending power which indicates the discretionary funds available to spend, save, or invest after accounting for fixed expenses of life
• Aggregated credit such as credit utilization and delinquencies

Financial Durability products can help marketers and risk managers:

Enhance acquisition targeting with an indicator of financial resilience:

• Expand Prescreen and pay-over-time audiences by identifying consumers with modest, low, or no credit scores, but high durability
• Fuel digital acquisition efforts with Financial Durability Digital Targeting Segments to differentiate online households by likely financial resilience

Deepen customer relationships with high-durability households:

• Identify high-durability customer accounts for offers such as credit line increases, balance transfers and debt consolidation

Inform account / portfolio management and prioritize collections:

• Use durability to better segment accounts by likelihood of delinquency and for pre-collections account treatment strategies
• Prioritize high-durability households for focused retention
• Rank order accounts in collections by durability to increase recovery
• Better understand risk in credit and pay-over-time portfolios

Augment models:

• Increase customer flexibility in file appends or model use by using either the 1-5 Score or 1-1000 Index measure.

Financial Durability measures can only be used for non-FCRA applications.

Since the Financial Durability model does not use protected-class variables or demographics (such as age), regulated financial institutions can use Financial Durability products to identify and reach appropriate markets and audiences for asset and deposit gathering.