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TransUnion Increases Customer Acquisition Opportunities for Lending Organizations
By James Comtois
As a means of increasing customer acquisition opportunities for lenders, TransUnion, a Chicago-based global information solutions company, has launched Universe Expansion, a single, configurable service that combines advanced analytics with aggregated credit data to help lending organizations identify previously rejected or excluded applicants and market segments who might perform well if offered credit.
"Credit lending organizations are under tremendous pressure to increase market share, revenue and penetration into new markets," said Joseph Gurreri, vice president solutions development. "Strict cutoff strategies help avoid loss and fraud, but also can cause organizations to miss profitable customers hidden within the rejected or excluded population."
Mr. Gurreri added that Universe Expansion assists credit lending organizations in increasing their profitability, reducing the uncertainty of expanding into new markets and segments, and getting more value from their acquisition universe by reaching potentially profitable prospects that existing cutoff criteria unnecessarily rejected or excluded.
TransUnion's Universe Expansion, which was announced at the BAI Retail Delivery Conference in Las Vegas, analyzes the exclusion or rejection criteria a lending organization uses to determine whom they market to as well as whom they ultimately acquire as a customer.
Through aggregate analysis, Universe Expansion helps lenders identify and redefine those attributes that would suggest a consumer would likely perform well if approved for credit.
By expanding their criteria and accepting more applicants while maintaining a certain rejection rate, lending organizations can increase target populations, response and approval rates and revenue. In addition, Universe Expansion enables lending organizations to optimize the balance between marketing expenditures, approval rates and risk as well as maintain acceptable levels of risk. The new service also enables the company to better manage risk within each market.
Featuring both marketing and underwriting applications, Universe Expansion helps lenders increase the number of profitable accounts they choose to underwrite, effectively re-evaluate and adjust their existing marketing criteria and ultimately increase response rates.
TransUnion uses technology coupled with extensive analytical capabilities to combat fraud and facilitate credit transactions between businesses and consumers across multiple markets.
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