Experian has built a flexible scoring solution for Accucard offering consumers the opportunity to 'create' a credit card product for themselves.
Consumers can tailor their card by choosing the combination of payment options, interest rates and cash-back rewards that best suit their individual needs.
Key to this flexibility is the multiple scoring model conceptualised by Accucard and developed by Experian and Accucard.
This enables Accucard to predict customer lifetime value at point of acquisition and price each customer for overall business risk. This builds on conventional risk-only (fraud/default and delinquency) models to achieve an objective actuarial model of the lifetime value of each new customer.
Gavin Snell, director of business development at Experian, says: “Accucard has taken a much wider view of customer worth than is usually made at point of acquisition. They recognise that default risk is just one dimension of overall business value, particularly for revolving credit products. Low card usage, lack of revolving and high attrition rates can be just as damaging for the profitability of portfolio as payment defaulters.”