LexisNexis® Risk Solutions unveiled LexisNexis® RiskView™ Optics and RiskView™ Spectrum, two alternative credit scores supported by a comprehensive view of consumer credit risk culminating from years of innovation and research. RiskView Optics and RiskView Spectrum are three-digit FCRA-compliant credit scores that provide a broader view into consumer credit worthiness to deliver a more predictive assessment for a higher percentage of new applicants. RiskView Optics delivers predictive credit scoring that combines non-credit life events and alternative credit inquiry data while RiskView Spectrum utilizes those insights in combination with traditional tradeline credit data.
With increasing competitive pressures, declining tolerance for financial losses and mounting regulatory and fair-lending scrutiny, credit risk professionals require access to more complete pictures of applicant creditworthiness, in order to minimize risk and better serve their customers.
These new tools can significantly boost financial inclusion by uncovering more creditworthy no-file consumers. RiskView Optics and RiskView Spectrum can score more than 90% of applicants who do not have a traditional credit score – often referred to as credit invisibles – with a high degree of predictive strength. The scores also allow creditors and lenders to issue more competitive offers to consumers. RiskView Optics and RiskView Spectrum find more near-prime and prime applicants whose credit worthiness are often under or overestimated by traditional credit scores alone to help creditors and lenders maximize application acceptance rates while reducing risk exposure.
For the first time in the credit risk industry, LexisNexis Risk Solutions is able to capture the three most essential pillars of consumer credit behavior in a single score:
- Traditional tradeline credit data helps creditors and lenders better understand consumer creditworthiness
- Alternative tradeline data builds a more expansive view of consumer credit responsibilities
- Alternative non-tradeline credit data (life event, asset ownership, property records and others) fortifies understanding of consumer credit stability and ability to pay
"Many creditors and lenders are committed to the principles of financial inclusion and want to help consumers. With increasing competitive pressures, declining tolerance for financial losses and mounting regulatory and fair-lending scrutiny, credit risk professionals require access to more complete pictures of applicant creditworthiness, in order to minimize risk and better serve their customers," said Ankush Tewari, vice president of credit risk assessment at LexisNexis Risk Solutions. "Organizations need the broader risk visibility attainable through alternative credit data. The more insight, the greater the advantage. With our RiskView Optics and Spectrum solutions, lenders can make better credit decisions on nearly every U.S. consumer."
Visit RiskView Optics and RiskView Spectrum for more details on how creditors and lenders can better evaluate consumer risk. Attend a webinar on Mar 2, 2021 at 2:00 pm ET hosted by American Banker with Aite Group analyst Leslie Parrish and LexisNexis Risk Solutions senior director of credit risk strategy Kevin King: Surveying the Landscape of Alternative Data.