Chapter 16: DDM-IXI
IN THIS LESSON
What is it?
Equifax offers the Financial Durability Score™ and Financial Durability Index™ measures to provide a holistic view of households' likely financial resilience, even under financial stress. These measures are powerful tools for marketers looking to understand hidden customer opportunities and risks during fluctuating economic conditions.
Financial Durability measures use a model that provides unique insight into households' likely ability to keep spending, plus meet current and future financial obligations, even when under financial stress. Financial Durability can help marketers and risk managers differentiate consumers for acquisition and cross-sell efforts, inform pre-collections strategies, and increase recovery for accounts in collections.
How its used
Enhance acquisition targeting with an indicator of financial resilience
Expand Prescreen and pay-over-time audiences by identifying consumers with modest, low, or no credit scores, but high durability
Fuel digital acquisition efforts using Digital Targeting Segments to differentiate online households by likely financial resilience
Deepen customer relationships with high-durability households
Identify high-durability accounts for offers such as credit line increases, balance transfers, and debt consolidation
Inform account/portfolio management and prioritize collections
Use durability to better segment accounts by likelihood of delinquency and for recollection account treatment strategies
Prioritize high-durability households for focused retention
Rank order accounts in collections by durability to increase recovery
Better understanding risk of credit and pay-over-time portfolios
Supplement existing in-house models
Available as a 1-5 Score and a 1-1000 Index measure for increased customer flexibility in file appends or model use
Competitive difference
The ONLY non-FRCA financial capacity measure on the market that considers MULTIPLE financial capacity measures.
Financial Durability measures feature Equifax proprietary data on the consumer wallet based on direct-measurement of over $27 trillion in anonymous U.S. consumer investable assets — about 45% of all investable assets — and credit data for over 220 million consumers in the U.S, and is built without using personally identifiable information.