Alternative score leverages extensive TeleCheck consumer payments data to enable financial institutions to profitably open more new accounts
ATLANTA, Oct. 13, 2011 – First Data Corporation, a global leader in electronic commerce and payment processing, today announced that Equifax Inc. (NYSE: EFX), one of the largest and most diverse sources of consumer and commercial data, will offer its Confidence Score® solution – an alternative scoring tool that provides access to hard-to-locate information on sub-prime, thin-file, and no credit score consumers.
The First Data Confidence Score solution will help Equifax’s financial institution clients to identify new account applicants who have low credit scores or little credit history but might otherwise have the potential to be profitable banking customers. The score can also be used to facilitate new account opening and review decisions in telecommunications, insurance, utilities, and other bill-pay environments.
“For some consumers, credit scores accurately predict the level of risk for opening an account. But for many, there is more to the story than the credit score,” said Mark Wallin, division manager of First Data’s TeleCheck®. “First Data’s Confidence Score solution leverages TeleCheck’s extensive check writer and financial institution database in conjunction with our proprietary risk and fraud detection analytics to paint a picture of consumers’ financial management beyond the credit arena. Clients are then able to accept and perhaps build solid relationships with qualified applicants they might otherwise have turned down, while minimizing their risk of charge-offs.”
With First Data Confidence Score, each new account applicant is screened and assigned a score between 1 and 999. Clients can use the score and the accompanying information, including additional reason codes, to gain a deeper understanding of an applicant’s financial history and the factors that impacted scoring. With this insight, banks and credit unions can more effectively evaluate individual financial risk to make better account acquisition decisions.
Financial institutions can use the information to segment checking account customers for product and account privileges that align with their risk profile. For example, banks and credit unions might choose not to offer a debit card or overdraft protection, or apply check writing limitations. They also might choose to flag accounts that require closer monitoring.
First Data’s Confidence Score solution allows clients to use multiple forms of identification to screen applicants. The solution leverages TeleCheck, the nation’s most complete database of check writer information, which provides affordable, real-time information based on checking account history at TeleCheck merchants and financial institutions nationwide. The information includes extensive financial data, that identifies applicants with a history of account abuse and poor maintenance, charge-offs and fraudulent checks.
“Listening to our customers, we recognize that today’s banks and credit unions are looking for new and faster ways to achieve increased transaction growth while enhancing risk mitigation and supporting lower operating costs,” said Joy Wilder Morgan, senior vice president, Equifax Financial Services Group. “First Data’s solution meets this market demand and helps financial institutions expand and diversify their household deposit base by enabling them to target and reach profitable applicants and drive greater ROI from risk decisions.”
First Data Confidence Score joins an existing First Data suite of DDA lifecycle management solutions, including First Data New Account Screening, which indicates a consumer’s debt status with TeleCheck; and DDA Collections Services, a specialized pre- and post-charge off collections service for DDA debt.
Equifax is a global leader in consumer and commercial information solutions, providing businesses of all sizes and consumers with information they can trust. We organize and assimilate data on more than 500 million consumers and 81 million businesses worldwide, and use advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.
Headquartered in Atlanta, Equifax operates in four continents and 15 countries, is a member of Standard & Poor’s (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange under the symbol EFX. For more information, please visit www.equifax.com.
About First Data
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.
Jennifer Costello, Equifax
Kim Graber, First Data