Delphi for New Business
Delphi for New Business
Assessing consumer acquisition risk
Delphi for New Business (Delphi NB) is a suite of highly predictive generic scorecards that can be used in any consumer credit application processing environment to assess the credit risk of new customers.The scoring models are designed to predict the likelihood that a new applicant for credit will become a ‘good’ payer if accepted, and are used by over 150 leading UK financial institutions generating in excess of 70 million scores each year. The key to their power lies in Experian’s: • •
•
Consumer database – the UK’s largest, most dynamic and up-todate set of consumer files Vast experience in developing bureau solutions – Experian has been building and implementing scorecards in the UK for over 20 years Unique combination of statistical and segmentation techniques – turning consumer bureau data into genuine consumer intelligence
Key benefits Better decisions Access to Experian’s vast array of data assets and analytics enable you to make the right acquisition decisions to grow your business but, at the same time, control bad debt, business risk and exposure. Cost effective As a bureau based service, it frees up time and cost associated with the development, implementation and monitoring of custom scorecards. Tailored to business requirements Where needed, additional characteristics can be added for specific
organisations or market sectors to ensure the overall scoring solution meets every business requirement. Availability of Future Delphi The Delphi for NB score continues to provide strong risk assessment over time. It can also be used with macroeconomic variables to ensure that the bad rates associated with each score band continue to be aligned. Key features
• Simplifies the interpretation of • • •
•
•
credit bureau data by delivering a single predictive score. Improves discrimination in custom scorecards. Powerful enough to be used as a standalone credit scorecard. Ideal for new market entrants, new portfolios and emerging markets where data is not available for a custom scorecard build. Application characteristics can be added to increase the predictive power for specific vertical markets or organisations. Scorecards are regularly rebuilt to reflect the latest data and economic conditions.
Experian Riverleen House Electric Avenue Nottingham NG80 1RH
Extra predictive power To further enhance the predictive capabilities of Delphi NB the following indices are available: The Consumer Indebtedness Index (CII) This has been designed to help to identify individuals who can fulfil their current repayments, but will struggle to keep up if they continue to increase their level of debt.There are three generations of the CII available, depending on the version of Delphi NB being used.The CII is a score based index, with values in the range 1 to 90 indicating an increasing level of indebtedness. Suspicious Activity A score which assesses recent credit activity at an address and flags those cases that are at most risk of fraudulent activity Geo-delphi A postcode level risk classification. There are four generations available, depending on the version of Delphi being used. It is built on a wide range of credit related characteristics.
NPD block Variables which identify individuals with no intent to pay.This block incorporates variables for Never Paid Defaults (no payments made and now a CAIS status 8) and Early Bads (CAIS status 3+ within 6 months of the account opening)
Delphi Plus scorecards Experian also has available a comprehensive range of Delphi NB based generic scorecards.These ‘Delphi Plus’ scorecards harness the power of the Delphi NB score, but also include key application variables.
Optional Delphi NB scores Delphi NB is fully compliant with the Third Party Data regulations. In addition to ‘Opt-in’ and ‘Opt-out’ the following scores are also available
Delphi Plus models are currently available for the following products:
Alert for Associates Uses adverse Same Person Associated data only to identify high risk cases when the applicant has chosen to ‘optout’. Household override For individuals with no track record who may be declined by the ‘opt-in’ score, positive unassociated family data can be used to override the decision.
Home Credit block Variables relating to accounts with door to door collections.
Personal Loans Mortgages Motor finance Credit cards Rental
Delivery options Experian’s consultancy services are available to ensure that the most appropriate option for implementing Delphi NB is selected.
DNB additional services
The most recent versions of Delphi NB allow for additional data blocks to be utilised in the risk assessment: Vertical Market blocks Ten blocks which contain up to 40 variables relating to a specific product, namely Bank Cards, Personal Loans, Current Accounts, Mortgages, Hire Purchase, Store Cards, Credit Sales Agreements, Home Shopping,Telcos and Utilities.
• • • • •
Enhanced CII
ICH
Additional blocks
Vertical Market
Indebtedness
Additional scores
Core DNB
GeoDelphi
BDS
Income Validation
Home Credit
Never Paid default
HHO
Suspicious Activity
Alert for Associates
Future Delphi
The Delphi Block
Behavioural Data Sharing (BDS) block Variables relating to payment and borrowing behaviour on Bank Cards. Impaired Credit History (ICH) block Variables which report on specific types of adverse bureau data (e.g. IVA in the last 3 years).This block is an FSA requirement for monitoring of portfolio risk by mortgage lenders.
Credit Propensity
Gen 9
CII
Income Estimation
© Experian 2011.
For further information please contact your account manager or email [email protected]
The word “EXPERIAN” and the graphical device are trade marks of Experian and/or its associated companies and may be registered in the EU, USA and other countries. The graphical device is a registered Community design in the EU. All rights reserved.
Assessing consumer acquisition risk
Delphi for New Business (Delphi NB) is a suite of highly predictive generic scorecards that can be used in any consumer credit application processing environment to assess the credit risk of new customers.The scoring models are designed to predict the likelihood that a new applicant for credit will become a ‘good’ payer if accepted, and are used by over 150 leading UK financial institutions generating in excess of 70 million scores each year. The key to their power lies in Experian’s: • •
•
Consumer database – the UK’s largest, most dynamic and up-todate set of consumer files Vast experience in developing bureau solutions – Experian has been building and implementing scorecards in the UK for over 20 years Unique combination of statistical and segmentation techniques – turning consumer bureau data into genuine consumer intelligence
Key benefits Better decisions Access to Experian’s vast array of data assets and analytics enable you to make the right acquisition decisions to grow your business but, at the same time, control bad debt, business risk and exposure. Cost effective As a bureau based service, it frees up time and cost associated with the development, implementation and monitoring of custom scorecards. Tailored to business requirements Where needed, additional characteristics can be added for specific
organisations or market sectors to ensure the overall scoring solution meets every business requirement. Availability of Future Delphi The Delphi for NB score continues to provide strong risk assessment over time. It can also be used with macroeconomic variables to ensure that the bad rates associated with each score band continue to be aligned. Key features
• Simplifies the interpretation of • • •
•
•
credit bureau data by delivering a single predictive score. Improves discrimination in custom scorecards. Powerful enough to be used as a standalone credit scorecard. Ideal for new market entrants, new portfolios and emerging markets where data is not available for a custom scorecard build. Application characteristics can be added to increase the predictive power for specific vertical markets or organisations. Scorecards are regularly rebuilt to reflect the latest data and economic conditions.
Experian Riverleen House Electric Avenue Nottingham NG80 1RH
Extra predictive power To further enhance the predictive capabilities of Delphi NB the following indices are available: The Consumer Indebtedness Index (CII) This has been designed to help to identify individuals who can fulfil their current repayments, but will struggle to keep up if they continue to increase their level of debt.There are three generations of the CII available, depending on the version of Delphi NB being used.The CII is a score based index, with values in the range 1 to 90 indicating an increasing level of indebtedness. Suspicious Activity A score which assesses recent credit activity at an address and flags those cases that are at most risk of fraudulent activity Geo-delphi A postcode level risk classification. There are four generations available, depending on the version of Delphi being used. It is built on a wide range of credit related characteristics.
NPD block Variables which identify individuals with no intent to pay.This block incorporates variables for Never Paid Defaults (no payments made and now a CAIS status 8) and Early Bads (CAIS status 3+ within 6 months of the account opening)
Delphi Plus scorecards Experian also has available a comprehensive range of Delphi NB based generic scorecards.These ‘Delphi Plus’ scorecards harness the power of the Delphi NB score, but also include key application variables.
Optional Delphi NB scores Delphi NB is fully compliant with the Third Party Data regulations. In addition to ‘Opt-in’ and ‘Opt-out’ the following scores are also available
Delphi Plus models are currently available for the following products:
Alert for Associates Uses adverse Same Person Associated data only to identify high risk cases when the applicant has chosen to ‘optout’. Household override For individuals with no track record who may be declined by the ‘opt-in’ score, positive unassociated family data can be used to override the decision.
Home Credit block Variables relating to accounts with door to door collections.
Personal Loans Mortgages Motor finance Credit cards Rental
Delivery options Experian’s consultancy services are available to ensure that the most appropriate option for implementing Delphi NB is selected.
DNB additional services
The most recent versions of Delphi NB allow for additional data blocks to be utilised in the risk assessment: Vertical Market blocks Ten blocks which contain up to 40 variables relating to a specific product, namely Bank Cards, Personal Loans, Current Accounts, Mortgages, Hire Purchase, Store Cards, Credit Sales Agreements, Home Shopping,Telcos and Utilities.
• • • • •
Enhanced CII
ICH
Additional blocks
Vertical Market
Indebtedness
Additional scores
Core DNB
GeoDelphi
BDS
Income Validation
Home Credit
Never Paid default
HHO
Suspicious Activity
Alert for Associates
Future Delphi
The Delphi Block
Behavioural Data Sharing (BDS) block Variables relating to payment and borrowing behaviour on Bank Cards. Impaired Credit History (ICH) block Variables which report on specific types of adverse bureau data (e.g. IVA in the last 3 years).This block is an FSA requirement for monitoring of portfolio risk by mortgage lenders.
Credit Propensity
Gen 9
CII
Income Estimation
© Experian 2011.
For further information please contact your account manager or email [email protected]
The word “EXPERIAN” and the graphical device are trade marks of Experian and/or its associated companies and may be registered in the EU, USA and other countries. The graphical device is a registered Community design in the EU. All rights reserved.
