Consider the impact of expanding demand deposit accounts at your bank by 25 percent. More than one in four households (28.3 percent) are either unbanked or underbanked, according to a 2011 FDIC survey. But, with an improving economy and expanding job market, many of these potentially profitable households are looking to re-enter the financial mainstream.
The impact of acquiring these consumers can be considerable, if you can identify and target the most credit-worthy among them. With advanced alternative data, you can.
25 million opportunities
Leveraging the power of nontraditional data, the Equifax Insight Score for Retail Banking[AM1]enables financial institutions to risk-rate many consumers with little or no credit. It leverages relevant and predictive data such as payment histories on cable, cell phones and utilities supplements to ‘fill in’ critical information missing on no-file or thin-file account applicants. But it doesn’t stop there. There are additional data sources that provide valuable insight for this segment. You can have insight into employer-provided income records that allow precise verification; data and value regarding U.S. investment assets, which ensure opportunities for cross-selling aren’t missed; and residential property value information that allows for practical risk as well as potential profit evaluation.
When you consider the innovative data now available, financial institutions that are simply relying on credit scores and negative information are overlooking hidden opportunities.
Scoring the most new customers
Evaluating underbanked or unbanked potential customers requires the cross-referencing of multiple databases. It’s not just a yes-or-no check-off list. With a robust and flexible technology platform, such as Equifax’s InterConnect, a multidimensional view of new account applicants can be developed. It offers real-time access to millions of consumer records, allowing for efficient point-of-sale segmentation of new checking account customers.
With powerful information and technology, the related costs and time requirements of account openings can be reduced. Not only that, but the customer experience is enhanced, and the possibility of future charge-offs can be reduced.
Good customers who might have been turned down before can be on-boarded with confidence, initiating a profitable relationship that strengthens a bank, its customer base and community.
[AM1]Link to white paper: http://consumer.equifax.com/LP=1267?elq=00000000000000000000000000000000&elqCampaignId=