The alliance intends to deliver a series of jointly developed risk management products. The first product developed collaboratively by Experian and Visa, BankruptcyPredict, has the potential to reduce financial institution losses by identifying consumers in financial distress and predicting bankruptcies up to 24 months in advance. By using both transaction data from Visa and credit file information from Experian, the product uses patented technology to deliver financial institutions credit risk scores.
BankruptcyPredict uses consumer credit and transaction activity across multiple financial account types. By taking a more comprehensive view of a consumer’s credit activity, including many forms of payment cards and other loans or credit products, financial institutions can make more accurate account management decisions.
Elizabeth Buse, executive vice president of Visa, said: Our strategic alliance with Experian combines the expertise of both companies to offer high impact product solutions to financial institutions as they manage their customer relationships. A comprehensive view of financial transactions has the potential to increase the effectiveness of a financial institution’s volume growth and account management efforts.
