Experian and Visa today announced an alliance to create unique risk management products for financial institutions. The alliance intends to deliver a series of jointly developed risk management products designed to help financial institutions reduce credit and fraud risk losses.
The first product developed collaboratively by Experian and Visa, BankruptcyPredict, has the potential to reduce financial institution losses by better identifying consumers in financial distress and predicting bankruptcies up to 24 months in advance. By using both transaction data from Visa and credit file information from Experian, the product uses patented technology to deliver financial institutions credit risk scores. A financial institution would consider the score and other risk information when making account management decisions such as when to offer financial education or other actions that may help cardholders recover from financial distress.
BankruptcyPredict differs from other products on the market because it uses consumer credit and transaction activity across multiple financial account types. By taking a more comprehensive view of a consumer’s credit activity – including many forms of payment cards and other loans or credit products (e.g., mortgages, lines of credit), financial institutions can make more accurate account management decisions.
“Our strategic alliance with Experian combines the expertise of both companies to offer high impact product solutions to financial institutions as they manage their customer relationships,” said Elizabeth Buse, executive vice president, Visa. “A comprehensive view of financial transactions has the potential to increase the effectiveness of a financial institution’s volume growth and account management efforts.”
“This alliance demonstrates the intelligence and capabilities Experian and Visa can bring to our clients’ risk decisions,” said Kerry Williams, group president, Credit Services & Decision Analytics, Experian Americas. “Although account and portfolio management have always been vitally important, today’s economic climate demands more granular detail to evaluate risk and account-level choices to maintain a healthy portfolio.”
BankruptcyPredict will be a subscription service commercially available from both Experian and Visa in early 2008.
Visa USA is a leading payments brand and the nation’s largest payments system, enabling banks to provide their consumer and business customers with a wide variety of payment alternatives tailored to meet their evolving needs. Visa USA is committed to increasing the choice, convenience, acceptance and security of Visa payments for all stakeholders – financial institutions, cardholders and merchants. As of 31 March 2007, the customers of Visa USA. reported that they had issued more than 600 million cards bearing our brands. Visa USA. is currently owned by certain of its approximately 14,000 customer financial institutions. Visa products generated $1.8 trillion in total volume in the United States during the four quarters ended 31 March 2007. Visa enjoys unsurpassed acceptance around the globe. For more information, visit www.visa.com.
Experian® is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalogue, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.
Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 36 countries worldwide, supporting clients in more than 65 countries. Annual sales are in excess of $3.8 billion.
For more information, visit the Group’s website at www.experiangroup.com.
Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.
| Experian | |
| Susan Henson | (714) 830-5129 susan.henson@experian.com |
| Visa USA | |
| Steve Burke | (703) 683-5004, ext. 108 sburke@crcpublicrelations.com |