Use Financial Durability Index to expand Prescreen audiences

If you are a credit marketer, would you like to look beyond credit scores and better differentiate consumers by their financial health?

Financial Durability Index™ from Equifax provides unique insight into households’ likely financial resilience — meaning how likely a household is able to keep spending, plus meet current and future financial obligations, even when under financial stress.

For example, when running acquisition campaigns you can:

  • Expand Prescreen and pay-over-time audiences by identifying consumers with modest, low, or no credit scores, but high durability
  • Fuel digital acquisition efforts with Financial Durability Digital Targeting Segments to differentiate households by likely financial resilience and reach them online

Use Case:

By applying Financial Durability measures before Prescreen, credit marketers can find HIDDEN SEGMENTS that are likely good candidates for Prescreen – even among households with the same credit score.

Key benefits for credit marketers:

  • Expand Prescreen target audiences by thousands of consumers, without adding risk
  • Manage risk by better adjusting thresholds
  • Reduce or reallocate Prescreen expense by focusing on a more high-potential audience 

Example - Credit scores and Financial Durability

This chart shows the number of consumers in each credit score range, assigned  to one of the five Financial Durability Index bands. Now you can consider expanding your audience to lower credit bands that have high durability (orange cells), or suppressing consumers with low durability (purple cells), even if they have a high credit score. Focus your Prescreen list on consumers who likely are better prospects for your offers.

The patent-pending Financial Durability Index model provides an indicator of financial resilience by analyzing the intersection of multiple financial capacity measures:

  • Affluence — based on a foundation of anonymous invested assets

  • Estimated total household income — based on income from wages, assets, business, and retirement funds

  • Spending power — discretionary funds available to spend, save, or invest, after accounting for fixed expenses of life

  • Aggregated credit — such as credit utilization and delinquencies

See how your Prescreen acquisition programs can benefit from Financial Durability Index.

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Data is for illustrative purposes only. Results may vary based on actual data and situation. Financial durability measures were not developed or intended to be used for the extension of credit to any individual, nor may they be used for purposes of determining an individual's creditworthiness or for any other purpose contemplated under the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. 

 

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Financial Durability can help segment audiences prior to credit line increase
Financial Durability can help segment audiences prior to credit line increase

Financial Durability Index can help find hidden accounts that should qualify for credit line increases.

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Leverage household resilience with Financial Durability Index

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