Lenders and marketers today need Scorelogix's cutting edge risk scoring solutions and economic forecasts than ever before to achieve better risk-based decisions in order to increase response rates, increase approvals, reduce losses, and increase profitability. Using Scorelogix's risk scores & segmentation grades companies can increase response rates by up to 11%, improve approvals by 15%, and reduce losses by up to 30%.
2009 will be a challenging year. Economy will further slowdown, unemployment will reach new highs, consumer spending will reach new lows, and credit card losses and mortgage losses will rise to new highs. Conventional credit tools and risk scoring solutions will not be enough in these tough times. Scorelogix's consumer risk scores and segmentation grades offer distinct advantages since they uniquely capture economy's impact on consumers' credit risk and financial behavior.
The Income Stability Score (ISS) predicts unemployment risk for an individual and is used as a prospect score for prescreening applications. The ISS reflects the changes in the economy and factors its impact on people’s job and income prospects. The ISS is a great marketing tool and yields higher response rates, which means fewer mailings and lower costs.
The ISS offers 100% coverage allowing for 100% prescreening of any marketing list, maximizing marketing prospects and business opportunities. The ISS can be used as a prospect score for virtually any industry since it segments prospects by their income loss risk, which is a key driver of consumers’ financial behavior and spending capabilities.
The Local Economic Health Index (LEHI) is a measure of local economic conditions, and it is a snapshot of economic activity for every State, MSA and ZIP code in the country. The index is updated quarterly. The LEHI can be considered as a ZIP level proxy for GDP and is essentially a measure of a region’s economic well being. The LEHI segmentation grades based on the LEHI are great for prospect scoring and for developing superior marketing and business strategies. |
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The Job Security Score (JSS) is an alternative credit score and it predicts consumer’s credit risk. The Job Security Score is unique because it brings the economy factor, or market risk or systemic risk, into the consumer credit risk equation. The Job Security Score is the only score that predicts consumer credit risk using the income-risk theory, and considers the impact of economy on consumers’ credit risk. The JSS helps lenders increase profits by 5-30% and is used for making better acquisitions and account management related credit decisions.
The JSS is a leading indicator of credit risk, and it provides credit risk insights not available from traditional credit bureau scores. In addition, the JSS offers 100% coverage and allows scoring of files that couldn’t be effectively scored before -- typically called the no-hit or thin-file accounts, and the under-served and un-banked accounts. This increases the number of score-able files and hence the business opportunity for lenders and
The JSS is a great complement to traditional credit scores since it gives a forward looking measure of credit worthiness and adds even greater clarity and accuracy to credit decisions. The Job Security Score does not use credit history but uses a proprietary income-risk model to predict consumer’s ability-to-pay and credit risk. The JSS is used in every stage of consumer credit cycle, starting from credit decisioning, to account management, and to delinquency management - just like conventional credit scores. The JSS is also a great tool for evaluating portfolio level risk, for forecasting portfolio level revenues and losses, and for portfolio valuations.
The Job Security Index (JSI) is a measure of job conditions. The JSI is available monthly, along with a 12 month forecast, for every State, MSA and ZIP code in the country. The index is updated monthly. The JSI is a broader metric compared to the unemployment rates, and typically leads unemployment rates by 2-3 months. The JSI consumer segmentation grades based on JSI are great tools for prospect scoring and for forecasting applications.
Every month Scorelogix develops and offers highly accurate unemployment rate forecasts (URF) for 12 months for every State, MSA and ZIP code in the country. The unemployment rate forecasts are very useful to companies for forecasting and planning purposes, particularly in a challenging economic environment like we are in now. The Unemployment Risk Grades based on URF are great for prospect scoring and for developing superior marketing and business strategies. |
