Identify hidden risk within a customer portfolio

Situation:   A communications service provider turns to Equifax for help in understanding which accounts present the most risk of non-payment during times of economic hardship.

Challenge    

A communications service provider is operating in a market where there is a lot of uncertainty about their customers’ financial durability. 

The communications service provider wants to be able to better identify hidden risk within their portfolio by understanding which accounts are most at-risk for non-payment.  

Solution     

Equifax applies its Financial Durability segmentation to the portfolio. This helps to predict the ability of consumers to handle financial stress, powered by a holistic understanding of the consumer’s likely wealth, income, spending capacity, and credit.  

The Financial Durability segmentation can help the communications provider to better identify and predict incremental risk of future non-payment within their portfolio. 

Outcome   

By using Equifax’s Financial Durability measure, the communications provider is able to:

  • Identify consumers who are 10x more likely to have a Non-Pay Disconnect
  • Identify areas of incremental risk for accounts with similar credit scores. 1 out of 4 accounts in the provider’s FICO® Score Range of 600+ had Low Durability and a 2.5x higher non-payment rate. 

Results may vary based on actual data and situation.

 

Financial Durability - What is it? View our infographic


Learn more about Equifax Data-driven Marketing solutions. Visit our microsite.

 

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