Alternative Data Credit Risk Decisioning Solution - LexisNexis®

RiskView™ employs proprietary scoring methodology based on public record and non-traditional consumer credit data, not credit bureau based data. Drawing on a powerful and proven combination of public records and other proprietary data sources, RiskView™ can expand your applicant universe by identifying and scoring customers, without depending on traditional trade line credit history. Public records and other sources offer significant decisioning power on underbanked consumers based on factors like

  • Stability
  • Ability to pay debt
  • Willingness to pay debt

HOW IT WORKS
RiskView uses a three-digit creditworthiness score (ranging from 500-900) to predict a consumer's credit risk and likelihood of the account becoming delinquent during the first 18 months after approval while also providing associated codes to indicate key factors driving the score. Higher scored applicants are considered more creditworthy. Moreover, RiskView is FCRA (Fair Credit Reporting Act) compliant.

RiskView assesses risk based on
reliable indicators such as:
Populations that provide major opportunities include:
  • Residential stability;
  • Utility payment consistency;
  • Asset ownership;
  • Derogatory status; and
  • Life-stage analysis.
  • Immigrants
  • Recently widowed or divorced individuals
  • Students and young adults
  • Consumers operating on a cash basis

Traditional credit data only scratch the surface. RiskView provides rich, new content and additional segmentation to give you a clearer picture of consumer behavior.

BACKGROUND
Over the past 10+ years, lenders have competed for the same customers covered by traditional data sources, resulting in saturated markets and eroding profit margins. But now we know millions of individuals aren't covered by traditional credit scoring due to a lack of credit information. These "thin-file" and "no-file" populations have been overlooked for lending opportunities due to a lack of credit history and could potentially be very profitable customers. Lenders are actively seeking these "underbanked" populations as a source of continued growth.

RiskView™ overcomes this problem by using non-traditional data to accurately predict risk in populations not covered by credit bureaus. RiskView can score over 50 million thin- and no-file consumers, helping credit professionals assess this emerging credit market. By quantifying risk, financial institutions can confidently determine when to extend credit and approve new customers.

Consumer lifecycle and lifestyle data are proven to be highly effective predictors of behavioral patterns and financial risk levels. Traditional bureau credit scores do not take these types of data into account and overlook a very large segment of the population. As a result, industry estimates show nearly 25 percent of U.S. adults are not adequately covered by traditional credit information, making it difficult for these individuals to qualify for loans.

Traditional credit scores have major gaps. Traditional credit bureau risk scores only work for traditional consumers with plenty of credit history.  Without adequate credit history, a credit score does little to tell you about the creditworthiness or risk of an individual.

PROGRAM BENEFITS
With RiskView, you can:

  • Assess credit risk
  • Expand your customer base
  • Enhance underwriting methods
  • Comply with the Fair Credit Reporting Act (FCRA)
  • Accurately assess risk

From pre-screening customers to monitoring existing customers, RiskView™ Total Solutions can be used to enhance decision-making across all phases of your customer lifecycle. Better data and better decisions can yield you better results

RiskView™ is a consumer reporting agency product provided by LexisNexis Risk Solutions and is fully compliant with the Fair Credit Reporting Act, 15 U.S.C. §1681, et seq. ("FCRA"). RiskView™ reports constitute consumer reports, and may only be accessed for permissible purposes as provided in the FCRA. LexisNexis and the Knowledge Burst logo are registered trademarks of Reed Elsevier Properties Inc., used under license. RiskView is a trademark of LexisNexis RIsk Solutions.© 2008 LexisNexis Risk Solutions. All rights reserved.​​​​​​​​​

Learn more about RiskView.



​Questions? Please contact Jackie Lucas for more information.



 

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 Program Contacts

 

Corporation for American Banking
Debbie Whiteside
(202) 663-5580

Jerry Sebold
(202) 663-7540​

LexisNexis®
(866) 858-7246
http://www.lexisnexis.com/risk/credit-risk-management.aspx

 

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