Case Study | Enhancing decisions on marginal credit scores
| Sector | Motor Finance |
|---|---|
| Products | Classic |
| Application | Acquisition |
In this case study, we demonstrate how Fraudscreen was shown to complement and enhance traditional credit scoring by providing greater insight on applications close to the cut off, where a lack of sufficient credit data made decisioning more difficult. Working with motor finance provider Advantage Finance, the results of an investigation demonstrated that 18% of approved finance fell into the worst segments of predicted payment intent and a further 3% of declined applications fell into the best Fraudscreen segments. Both examples represented potentially lost revenues for the business.
Further investigation of these cases, around the score bandings, led Alan Tuplin, Director of Credit Risk for Advantage Finance to comment: "This I feel is the crucial winning area for Fraudscreen. Either a red or top green rating that conflicts with our credit assessment on a thin file should mean the decision should be changed."
