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  • Everything you need to know about trended credit data

    LendIt USA 2017

  • LendIt USA 2017

    About our speaker:

    Paul DeSaulniers Sr. Director, Experian Email: Paul.Desaulniers@experian.com Phone: 714.830.7580


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    1. Trended data 101

    2. How Trended Data helps lenders

    3. Leverage the power of trended data

    4. Best practices

    5. Q&A



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    Who is going to win?



    Finish Line

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    What if I showed you an additional snap shot?


    B A

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    What if I showed you a second snap shot?


    B A

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    Or all three together?



    Finish Line

    B A

    B A

    Time O-2

    Time O-1

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    Who would you bet on?


    Image source: www.sport-it.net

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    Market perspective on trended data


    An underutilized tool today due to technology barriers

    Intuitively trended data sounds like a no-brainer (with value seen across the credit chain of acquisitions, origination and account management) but the limitations of technology have historically prevented its widespread use. Change after all requires people, process and technology; and trended data has historically been difficult to deploy with a lot of testing required and ultimately needs the customers to adjust their decisioning, acquisition, offering and other strategies.

    Barclays Research October 6, 2016

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    Understand trended data beyond the buzz word

    Learn what trended data can tell you across the Customer Life Cycle to improve your business

    Most effective uses of trended data

    How to use trended data to solve your most pressing business challenges



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    Trended Data24 months of history on key data fields for every trade


    Trade #1 Balance Credit limitMinimum

    payment dueAccount payment

    Date of payment

    Month 0 $13,300 $25,800 $275 $1,000 Aug

    Month 1 $14,680 $25,800 $280 $1,000 July

    Month 2 $16,060 $25,800 $286 $1,000 June

    Month 3 $17,440 $25,800 $297 $1,000 May

    Month 4 $18,820 $25,800 $310 $1,000 April

    Month 5 $20,200 $25,800 $330 $1,000 March

    Month 6 $21,580 $25,800 $343 $1,000 February

    Month 7 $22,960 $25,800 $350 $1,000 January

    Trade #1

    Bank name Account #

    Open date Credit limit Balance

    Actual payment

    Loan type

    Account condition

    Account status

    Special comment

    Months reporting

    Minimum payment


    Months since


    Date of payment

    Visa 4812 3/9/1990 $25,800 $13,300 $1,000 Credit card OPEN CURR ACCT CH 231 $275 1 Aug-13

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    A unique profile of a consumer


    FebruaryVantageScore 720Balance $22,000 Status Good standing

    Month Balance Min Pay Due Actual PayJan $22,000 $550 $2,000 Dec $26,000 $650 $3,500 Nov $20,000 $500 $12,000 Oct $28,000 $700 $8,000 Sep $35,000 $875 $6,000 Aug $45,000 $1,125 $11,000 Jul $48,000 $1,200 $3,000

    Month Balance Min Pay Due Actual PayJan $22,000 $550 $550 Dec $19,000 $475 $475 Nov $16,000 $400 $400 Oct $15,000 $375 $400 Sep $11,500 $288 $320 Aug $9,000 $225 $300 Jul $6,500 $163 $200

    Consumer A Consumer BFebruary

    VantageScore 720Balance $22,000 Status Good standing

    Paying well over minimum payments Demonstrated ability to pay No payment stress

    X Making minimum payments for the last three months X Payment amounts vs. minimum due is decreasing over time X Increasing payment stress


    e D






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    Differentiating consumers through payment data


    Consumer A Consumer B Consumer C Average monthly balance $3,462 $3,435 $3,465 VantageScore 740 736 744

    Monthly balanceand payments

    Total annual payments $1,126 $22,390 $42,429 Average % of balance paid 2.6% 53.4% 100.0%

    Who is the best prospective customer?

    $- 0





    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    Total Bankcard BalanceTotal Bankcard Payments

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovDec Jan Feb Mar Apr May Jun Jul Aug Sep Oct NovDec

    Historical payment data enables a much better understanding of how a consumer uses their bankcard accounts

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    How trended data helps lenders


    Knowing a consumers credit information at a single point in time only tells part of the story

    To understand the whole story, lenders need the ability to assess a consumers credit behavior over time

    Understanding how a consumer uses credit or pays back debt over time can help lenders: Offer the right products & terms to increase response rates Determine up sell and cross sell opportunities Prevent attrition Identify profitable customers Avoid consumers with payment stress Limit loss exposure

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    The challenge with trended data


    How do you find the payment pattern?

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    10 trades

    24 months

    1,200 DATA POINTS

    1 consumer

    5 historical

    payment fields

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    and more data!


    10 trades

    24 months

    120,000,000 DATA POINTS

    100,000 consumers

    5 historical

    payment fields

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    But there is a solution to help clients unlock the power of trended data..


    Credit Profile Point-in-time snapshot

    of a consumers credit standing

    Trended Data Dynamic story

    of how a consumer is using credit over time

    Credit3D Solutions that

    unlock the power of the credit profile and trended data


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    Trended Data Time Line


    1998 2000 2002 2004 2006 2008 2010 2012 2013 2014 2015 2016 2017

    1998 Experian launches Credit Trends

    2001 First batch

    product TrendView

    (73 attributes)

    2002 Launch Trended

    Raw Archive


    2005 Custom

    trended data models on Exp. data

    2010 Experian launches:

    Short term (108)

    Credit Line Mgmt (56)

    2012 Experian launches

    TAPS (Total Annual

    Plastic Spend)

    2013 Payment Stress

    (132) Balance transfer


    2014-2015Experian extends trade table by 18 new fields and launches

    EIRC (Estimated Interest Rate Calculator)

    Experian is the first in the industry to provide trade level spend, yield and revenue data by industry in a non-consortium


    2016 Experian launches

    Trended Data in on-line credit


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    Trended Data/ Credit3D A comprehensive view of the consumer


    Payment behavior: MIN PAY 2%

    Annual card spend: $7,500

    6 month yield: $ 74

    Average effective APR 16.99%

    In the market? Personal Loan

    BT Index (0-999) 875

    BTs in last 12 months 2

    Revolving trades: 4

    Transacting trades: 0

    Surfer, Transactor- Segment ID

    Utilization increase in last 6 months:

    + 35%

    Credit card balance last 6 months:

    + $8,000




    Credit3D leverages

    behavioral insight to improve risk, tap into new credit segments,

    improve response, profitability and develop market share strategies

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    Experian TAPS Annual credit card spend Estimated Interest Rate Calculator Interest rate and term information

    for personal loan, student loan, auto, revolving bankcard, retail bankcard and mortgage

    Extended Trade Trade-level profitability metrics Custom models Client initiated

    Trend View Identify revolving / transacting


    Short-Term Attributes Capture balance / utilization


    Line Management Attributes Identity limit changes Payment Stress Attributes Aggregate payment data Custom attributes Client initiated

    In the Market Models Propensity to open auto, personal

    loan, student loan, mortgage, HELOC and bankcard

    Balance Transfer Index Propensity to balance transfer Balance Transfer Surfer Overlay Propensity to be a rate surfer Custom scores Client initiated

    Leverage the power of Trended Data


    Trended attributesProfitability modelsPropensity scores

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    Credit3D / Trended Data capabilities


    Who is likely to respond to an offer? Balance Transfer Index

    In the Market Model

    Likelihood to balance transfer in 6 months

    Likelihood to open a trade in next 90 days

    Is there a better way to understand risk or to conduct swap set analysis?

    Payment Stress Attributes

    Deleveraging Attributes

    Level of consumer payments against balances

    Change in total payment obligations over time

    Short-Term Attributes Changes in revolving balance and utilization

    How can I acquire profitable consumers? How do I increase wallet share and usage?

    EIRC for Revolving

    Experian TAPS

    Yield in