In this use case, banks use Equifax data to validate risk models.
Situation: Company turns to Equifax for data to validate risk models for new account openings.
The bank is working with an established analytics firm to develop risk models focused on minimizing fraud and other liabilities for new account openings.
The bank wants to validate those models.
Equifax provides the bank with historical data attributes from credit files, as well as scores from credit card accounts, to help it better understand consumer behaviors, trends and risk over time.
Historical data can help the bank to validate the risk models developed by the analytics firm.
By using Equifax data to validate the risk models, the bank can:
Better evaluate the predictive power of models developed by a third party
- Ensure models meet desired risk thresholds and business objectives
Results may vary based on actual data and situation.