|By Business Wire||
|February 4, 2014 09:31 AM EST||
VantageScore Solutions, the company behind the VantageScore® credit scoring model, announced today the launch of a series of webcasts to help consumer lending institutions improve risk management processes due to advances in credit score modeling and decision analytics.
The webcasts will help credit policy professionals, risk analysts, marketing and acquisition specialists, compliance officers and other senior managers tackle critical issues regarding when, why and how to implement a new credit score model into current credit risk management systems.
“These webcasts are an extension of the dialogue we’ve been having with lending institutions since the launch of Vantage Score 3.0,” said Sarah Davies, senior vice president of analytics, research and product management at VantageScore Solutions. “In a post-recession lending environment, institutions are seeking tools such as VantageScore 3.0 that are designed to deliver maximum benefit given the current credit dynamics.”
The new informational tool leverages the knowledge and experience of more than 25 industry experts who have deployed new credit scoring models in their strategies, processes and technology platforms at major lending institutions.
The first two webcasts in the series were posted today. The first webcast provides the key analytic, process and reporting building blocks for approaching credit score model conversion. Its goal is to provide a checklist of tasks that should be completed in order to successfully implement a new scoring model with the goal of reducing losses and increasing volumes. The webcast discusses four methods for implementing a new scoring model, and then provides in depth guidance on one conversion method known as the “plug and play” method.
A second webcast covers credit score migration trends and the continued evolution of consumer credit management behaviors with an emphasis on how to leverage those trends as a credit provider.
The remaining webcasts will be posted on a regular basis. Each webcast builds on prior information to address credit score model conversion approaches for increasingly complex strategies and product designs. Along with broad topics to be covered that include testing, such as back testing, phased implementation and champion-challenger approaches, new strategy design for universe expansion opportunities and performance monitoring methods, more specific subject matters will be discussed, such as:
- Understanding the risk versus volume trade off when determining the score cut-off using a new scoring model. Analyzing and capturing swap set financial and behavior dynamics in order to optimize the score cut-off.
- Origination trends over the recession: A study across the mortgage, auto, and credit card industries that examines how origination trends changed and what geographic opportunities exist for portfolio growth.
- Optimizing the score cut-offs in complex lending strategies using multiple scoring models and/or additional lending criteria. Many lending institutions incorporate additional underwriting criteria to further segment consumer populations. This webcast will take these criteria under consideration and provide guidance for how to analyze, test and monitor scoring model conversion scenarios.
- Measurable bias: A methodology for identifying measurable bias in credit score models as well as consumer credit products using U.S. Census data.
- Full strategy rebuild: A comprehensive discussion of analytics and processes to guide lenders in universe expansion strategy design that captures the value of new consumers without introducing undue risk.
To be alerted when these and more VantageScore Solutions webcasts become available, sign-up for the VantageScore newsletter, follow the VantageScore Twitter account (@VantageScore), contact a representative from one of the three national credit reporting companies (Equifax, Experian, and TransUnion), or subscribe to our YouTube channel.
About VantageScore Solutions
VantageScore Solutions, LLC (www.vantagescore.com) is the independently managed company that owns the intellectual property rights to the VantageScore credit scoring models, including the recently announced VantageScore 3.0 model which provides up to 25 percent predictive improvement over earlier models and has the ability to formulate a score for 30 – 35 million previously unscoreable consumers. Initially developed by America’s three national credit reporting companies (CRCs) — Equifax, Experian and TransUnion — VantageScore Solutions’ highly predictive models use an innovative, patented and patent-pending tri-bureau scoring methodology that provides lenders and consumers with more consistent credit scores across all three national credit reporting companies.
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