Find out how Accelitas can create a custom solution for your business.
Between the boom in digital transactions and today’s non-traditional consumer, the need for accurate credit scores is more valuable than ever. The future of your business may rely on a generation that rents instead of buying homes, takes Uber rather than purchasing cars, and spends its money via Venmo instead of Visa. They may be perfectly creditworthy customers, but according to your traditional one-size-fits-all credit scoring methods, they simply don’t exist.
Predictive analytics can look at “credit invisible” thin-file and no-file consumers to identify millions of profitable accounts.
Accelitas has a fast, fair, and frictionless solution for both borrower and lender. Ai Lift is a unique credit risk service designed to grow business in two incredibly valuable ways: opening the credit door for millions of un-scored and thin-file consumers that traditional credit scores completely miss and identifying more creditworthy customers in the population of scored applicants you’ve already rejected.
The difference is an unprecedented combination of real-time alternative data, predictive analytics, and customizable solutions that tailor increasingly accurate scores for credit risk assessments:
Ai Lift analyzes unique and uncorrelated sources of alternative real-time data
Delivers predictive lift 2x higher than industry average
Increases growth and acceptance rates by 20–30%
Allows lenders to reduce FPD and the risk of charge-offs
Opens your business to new sources of revenue
While traditional credit scores are fine for giving you the big picture, there’s a lot they can’t see. It’s like asking for a weather report and getting the average temperature of the United States — you still have no idea what’s happening outside your door. A Microclimate™ credit score from Ai Lift has the unique ability to fine-tune the predictive analytics, delivering insights specific to your business, your industry, geography, customer, product, and sales goals.
Essential real-time data is another game changer. With Ai Lift, lenders can now see consumers through the lens of super-fresh ecommerce and merchant point-of-sale transactions, delivered in automated real-time results. In today’s uncertain marketplace, essential real-time data has proved itself a crucial component of credit risk assessment.
What is a Credit Risk Score?
A credit risk score predicts the probability that a consumer will become 90 days past due or greater on any given account over the next 24 months. A three-digit risk score relates to probability of acceptance, or in some cases, the probability of default. Advances in AI/Machine Learning and new real-time sources of alternative data have improved scoring models to be more predictive in identifying creditworthy borrowers.
How can Alternative Data help me identify more creditworthy borrowers?
Alternative Data is FCRA-compliant or non-credit data that is not typically included in traditional credit reports. For traditional data, think loan and inquiry data on credit cards, auto, mortgage and personal loans. Combining advanced predictive analytics with data beyond the traditional credit reports and FICO scores, our AI-powered Credit Risk Service, Ai Lift, can evaluate the millions of U.S. adults that traditional credit scores and screening services miss. That means data about far more people — including those 70 million U.S. adults in the “invisible” marketplace — and data that is more comprehensive about individual consumers, providing a more sophisticated picture of that person’s financial activity.
What is essential real-time data?
Accelitas has access to uncorrelated sources of essential real-time data from ecommerce and merchant point-of-sale transactions that provides the most up-to-date review of a customer’s credit risk. By tapping into these data sources, we can help lenders evaluate more thin-file and no-file borrowers and provide a more complete picture of creditworthiness to make better credit decisions.
How does predictive analytics improve loan decisioning?
Predictive analytics from Accelitas identifies profitable accounts that other scores miss. Lenders still rely on broad screening techniques to filter risky prospects. But what if you knew that indicators like First Payment Default (FPD) turn out to be no more reliable than a coin toss in predicting profitable accounts? Ai Lift from Accelitas is designed to find hidden indicators of creditworthiness, using advanced analytics to bend the traditional curve so you can identify and accept more good customers. In a recent data test of 18 competitive credit screening scores, Accelitas delivered twice the predictive lift over the vendor average — at 77% the cost of our nearest competitor.
Can AI/Machine Learning support (FCRA) fair lending rules?
Enlisting advanced analytic tools including AI and alternative data, credit risk services like Ai Lift are delivering a new standard of access and fairness. Fairness for the millions of creditworthy applicants unable to access lower interest rates through traditional screening methods, and fairness for lenders who need a frictionless method for reaching the “invisible” customers who can grow their business. To ensure compliance with FCRA regulations, it’s important that any “no” decision is explainable, even if the decision to turn down a consumer seeking credit was made with the assistance of AI-powered analytics. Ai Lift delivers insights that are both predictive and interpretable.
How can I lower FPD (first payment default) and reduce charge offs?
Many non-bank lenders base their lending decisions on predictions about which applicants are likely to incur a First Payment Default (FPD)—that is, which applicants are likely to be late making their first payment on a loan. Lenders assume that by predicting FPD they will be able to predict which applicants are likely to default on the loans entirely, resulting in losses for the lender. But our analysis of financial results at multiple non-bank lenders shows that FPD actually predicts account loss only about 50% of the time. When it comes to predicting whether a loan will be profitable, FPD turns out to be no more predictive than a coin toss. By focusing on profitability, rather than just FPD, and leveraging the real-time data-driven insights service, lenders can grow profits dramatically while keeping FPD rates and losses under control.
What is a Microclimate Credit Score?
A Microclimate credit score from Ai Lift can make a world of difference. With the unique ability to fine-tune the predictive analytics, Ai Lift delivers insights specific to your business, your industry, geography, customer, product, and sales goals. Accelitas tailors analysis for specific lenders applying precision insight at each stage of the data waterfall, and then refines that analytical model over time, giving lenders an increasingly predictive and accurate Microclimate score for credit risk assessments.
Call us at +1 415-842-7700 or email info@accelitas.com