Enhance response rate for AltFi/Specialty Finance direct mail lending campaign

This use case explains how Equifax can help enhance response rate for Prescreen direct mail campaigns.

Situation: Lending company seeks a solution to increase the response rate for direct mail campaign.

Challenge

An Alternative/Specialty Finance company wants to increase the response rate for its Prescreen direct mail campaign offering access to cash via the Internet.

Solution

Equifax develops a new Prescreen response model that leverages alternative credit data insights.  The model:

  • Is trained to identify look-alikes of borrowers that use specialty finance products such as installment loans and lease-to-own agreements

  • Is designed to give higher response rates, depending on score cutoffs

  • Can and should be combined with other prescreen criteria for risk mitigation

Outcome

By applying the new model to its direct mail campaign, a lender can expect to:

  • Achieve 2x-5x higher response rates, depending on score cutoffs

  • Decrease cost per acquisition, allowing lender to lower risk acceptance thresholds without increasing campaign cost

Results may vary based on actual data and situation.

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