Choosing the best consumers in the telecommunications, # ......©2016 Experian Information...
Transcript of Choosing the best consumers in the telecommunications, # ......©2016 Experian Information...
© 2016 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian
Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted
work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public.
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Choosing the best
consumers in the
telecommunications,
energy and cable
industries
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Introducing:
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Christopher Magnotti Experian
Beth Bayer Experian
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Why does this industry need a custom score?
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Why does this industry need a custom score?
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Why does this industry need a custom score?
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More choices than ever before
in consuming content
6
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Connectivity extends beyond a cell phone
Average number of connected devices in 2014
7
3.6
3.1 3.1 3.0 2.9
2.4 2.4
1.9
1.1
0
1
2
3
4
Netherlands UnitedKingdom
Australia Canada UnitedStates
Russia Germany China Brazil
Source: Statista 2016
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Growth of connected devices creates new
markets of opportunity for the TEC industries
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Disconnect due to non-payment rates
25%
6%
31%
0%
5%
10%
15%
20%
25%
30%
35%
Overall Energy Telecoms & Cable
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#vision2016 Introducing the new
TEC Score 2.0
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11
Developed by utilizing consumer telecommunications, energy and cable data
Predicts the likelihood of a consumer becoming seriously delinquent or 90+ days beyond terms and eventually disconnected
Scored on multiple scorecards, over a 12 month performance period
► Includes up to four score factor codes + inquiry code
Larger scoreable population
What is the TEC Score 2.0?
900
400 HIGH
RISK
LOW
RISK
Score range
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Features:
Incorporates fresher data
Utilize best-in-class Premier AttributesSM
Tri-bureau capabilities
Large development sample covering telecommunications, energy and cable
Score range more consistent with other credit scores – new range 400-900
Advanced modeling practices – uses newer modeling practices and solid documentation and model governance
Stringent model governance standards
TEC Score 2.0
Experian’s brand new risk model
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Attribute contributions for VantageScore® 3.0
3% 5%
21%
11%
20%
40%
Available Credit
Recent Credit
Depth of Credit
Balances
Utilization
Payment History
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Attribute contributions for TEC Score 2.0
3%
12%
34%
5% 6%
41%
Available Credit
Recent Credit
Depth of Credit
Balances
Utilization
Payment History
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Model performance compare
KS values
54.4
51.6
52.9
50.6
48
50
52
54
56
TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0
KS
%
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0%
20%
40%
60%
80%
100%
5% 15% 25% 35% 45% 55% 65% 75% 85% 95%
Cu
mu
lative
% o
f b
ad
acco
un
ts
Cumulative % of accounts
Model performance
TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0 Baseline
Model performance
14% more BADS captured vs. TEC
1.0 in the worst 25%
136% increase over baseline
Worst Scoring Best Scoring
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Model performance
0%
20%
40%
60%
80%
30% 20% 10% 5%
% o
f B
ad
Acco
un
ts
Lowest scoring ranges
Worst scoring capture rate — % of bad accounts
TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0
Score range of the new TEC 2.0 model
allows visibility into the worst 5%
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8%
42%
70%
84% 92%
96%
8% 27%
65%
85% 93% 97%
0%
20%
40%
60%
80%
100%
450 500 550 600 650 700
TEC Score 2.0 VantageScore3.0
Score cut offs
Percentage of bad accounts
Percentage of accounts
18
3% 18%
33%
45% 55%
66%
4% 14%
35%
51%
64%
78%
0%
20%
40%
60%
80%
100%
450 500 550 600 650 700
TEC Score 2.0 VantageScore3.0
Bad = 90+ or Disconnect, TEC 2.0
model’s performance definition is
customized to fit the TEC industry
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Percent scorable
98.7% 98.5%
92.3%
98.5%
88%
92%
96%
100%
TEC Score2.0
TEC Score1.0
TeleriskScore
VantageScore3.0
22%
78%
0%
20%
40%
60%
80%
100%
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What if a customer
cannot be scored
with the new
TEC 2.0 score?
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Gives a complete view of the consumer’s payment behavior
Enables you to expand marketable population
Gives underserved consumers better access and choices
Extended ViewSM
score
Experian is committed to helping consumers establish and build credit. Experian’s
Extended ViewSM score can help clients with the following:
Move beyond the traditional credit score and segment
underserved consumers for meaningful assessment
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Extended ViewSM
score
Percentage scorable
82% of records
scorable by either
TEC 2.0 or EVS
EVS = Extended ViewSM score
Pinned, scored
by TEC 2.0; 77%
Unscorable; 18%
Unpinned, scored
by EVS; 5%
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Unscorable distributions
0% 1% 4%
12%
31% 35%
14%
4% 1% 0% 0% 0%
0%
10%
20%
30%
40%
400-449 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-849 850-899 900-949 950-990
Dis
trib
utio
n
Extended ViewSM
score
Distribution for unpinned accounts
TEC Score 2.0
Distribution for thick files
23
1%
7% 10% 10% 11%
13%
23%
17%
7%
1%
0%
5%
10%
15%
20%
25%
400-449 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-849 850-900
Dis
trib
utio
n
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Extended ViewSM
score model performance
Apples-to-apples compare
0%
10%
20%
30%
40%
50%
30% 20% 10% 5%
% o
f b
ad
acco
un
ts
Lowest Scoring Ranges
Worst scoring capture rate — percentage of bad accounts
TEC Score 2.0 EVS
EVS = Extended ViewSM score
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50%
94%
83%
0%
20%
40%
60%
80%
100%
Data that provides a better hit rate
~88% increase
in the hit rate
for consumers
that had SSN
included in the
PII inquiry
submission data
Name &
address
Name, address
& SSN
Name, address
& DOB
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What’s next?
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Now what?
Data quality improvements for best hit rates
TEC 2.0
Extended ViewSM score
Continuous improvement to customer
acquisition waterfall
27
Validate and start using TEC 2.0
through your existing Experian interface today!
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For additional information,
please contact:
@ExperianVision | #vision2016
Follow us on Twitter:
#vision2016 [email protected]
https://www.linkedin.com/in/bethbayercpa
https://www.linkedin.com/in/chrismagnotti
https://www.linkedin.com/in/clara-gharibian-69146525
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