LexisNexis Risk Solutions unveils new tools, embarks new era in alternative credit scoring

By Pavithra R

Global data and analytics company LexisNexis Risk Solutions has announced the launch of RiskView Optics and RiskView Spectrum, two alternative credit scores supported by a comprehensive view of consumer credit risk culminating from years of innovation and research.

The new tools are 3-digit FCRA-compliant credit scores that provide a broader view into consumer creditworthiness, thus delivering a more predictive assessment for a higher percentage of new applicants. RiskView Optics delivers predictive credit scoring that combines non-credit life events and alternative credit inquiry data while RiskView Spectrum utilizes those insights in combination with traditional tradeline credit data. The tools enable enterprises to approve more applicants while reducing loss exposure across every consumer segment by completing the picture of consumer creditworthiness.

LexisNexis’ RiskView Optics and RiskView Spectrum can significantly boost financial inclusion by uncovering more creditworthy no-file consumers. The tools can score more than 90% of applicants who do not have a traditional credit score with a high degree of predictive strength. The scores also allow creditors and lenders to issue more competitive offers to consumers. 

“Many creditors and lenders are committed to the principles of financial inclusion and want to help consumers. With increasing competitive pressures, declining tolerance for financial losses and mounting regulatory and fair-lending scrutiny, credit risk professionals require access to more complete pictures of applicant creditworthiness, in order to minimize risk and better serve their customers. Organizations need the broader risk visibility attainable through alternative credit data. The more insight, the greater the advantage. With our RiskView Optics and Spectrum solutions, lenders can make better credit decisions on nearly every U.S. consumer,” said Ankush Tewari, vice president of credit risk assessment at LexisNexis Risk Solutions. 

Through the tools, LexisNexis Risk Solutions aims to capture the 3 most essential pillars of consumer credit behaviour in a single score:

• Traditional tradeline credit data helps creditors and lenders better understand consumer creditworthiness
• Alternative tradeline data build an expansive view of consumer credit responsibilities
• Alternative non-tradeline credit data fortifies understanding of consumer credit stability and ability to pay

Established since 1997, Headquartered in Georgia, LexisNexis Risk Solutions provide information-based analytics, decision tools and insights that help businesses and governmental entities reduce risk and improve decisions to benefit people globally. The firm’s client portfolio includes diverse industry verticals including insurance, financial services, healthcare and government.