Financial Durability Measures

• Financial Durability Score is a household-level scoring system using a 1-5 rating where a 5 represents the most likely financially resilient households.
• Financial Durability Index provides a 1-1000 index for more detailed use in models or file appends where a more granular approach is desired.
• Financial Durability Digital Targeting Segments are also offered for display, social or other online marketing programs.

Applying standard income or credit measures may not effectively differentiate consumers for marketing efforts. Many consumers have the same income or fall into the same credit score band, but have significantly different ability to take on more credit or purchase new goods while still meeting their financial obligations.

Financial Durability measures can help marketers understand consumers’ financial resilience so they can assess which prospects and customers are more - or less - likely to be able to keep spending, plus meet their debt commitments, even when under financial stress.

Financial Durability solutions can help marketers and risk managers:

Enhance acquisition targeting with an indicator of financial resilience:

• Expand ITA, Prescreen, and pay-over-time audiences by identifying consumers with modest, low, or no credit scores, but high durability 
• Differentiate consumers within the same credit score bands
• Identify audiences that are more likely to have the financial resilience to be able to spend on products and services, even during tough financial times
• Differentiate online households to fuel digital acquisition efforts with Financial Durability Digital Targeting Segments

Deepen customer relationships with high-durability households:

• Identify high-durability customer accounts for offers such as credit line increases, balance transfers and debt consolidation
• Promote sale offers, product or plan upgrades and loyalty perks to attractive customers
• Better manage marketing costs by reducing spend on low durability households

Inform account / portfolio management and prioritize collections:

• Use durability to better segment accounts by likelihood of delinquency and for pre-collections account treatment strategies
• Prioritize high-durability households for focused retention
• Rank order accounts in collections by durability to increase recovery
• Better understand risk in credit and pay-over-time portfolios

Augment models:

• Increase customer flexibility in file appends or model use by using either the 1-5 Score or 1-1000 Index measure.
• Financial Durability measures can only be used for non-FCRA applications.
• Since the Financial Durability model does not use protected-class variables or demographics (such as age), regulated financial institutions can use Financial Durability products to enhance ITA, segment audiences before Prescreen, or for other marketing initiatives.

Since the Financial Durability model does not use protected-class variables or demographics (such as age), regulated financial institutions can use Financial Durability products to enhance ITA, segment audiences before Prescreen, or for other non-FCRA marketing initiatives.

Financial Durability Measures combine multiple financial insights to yield a more detailed analysis of a household’s financial resilience and their likelihood of being a desirable customer. They are based on a model that analyzes the intersection of multiple financial capacity measures to provide an indicator of household financial resilience. These financial capacity inputs include:

• Affluence derived from an analysis of household spending power and credit utilization
• Estimated total household income based on income from wages, assets, business, and retirement funds
• Spending power which indicates the discretionary funds available to spend, save, or invest after accounting for fixed expenses of life
• Aggregated credit such as credit utilization and delinquencies