Choosing the best consumers in the telecommunications, # ......©2016 Experian Information...

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#vision2016

Choosing the best

consumers in the

telecommunications,

energy and cable

industries

© 2016 Experian Information Solutions, Inc. All rights reserved.

Experian Public.

Introducing:

#vision2016

Christopher Magnotti Experian

Beth Bayer Experian

3 © 2016 Experian Information Solutions, Inc. All rights reserved.

Experian Public.

#vision2016

Why does this industry need a custom score?


Experian Public.

#vision2016



Experian Public.

#vision2016

More choices than ever before

in consuming content

6


Experian Public.

#vision2016

Connectivity extends beyond a cell phone

Average number of connected devices in 2014

7

3.6

3.1 3.1 3.0 2.9

2.4 2.4

1.9

1.1

0

1

2

3

4

Netherlands UnitedKingdom

Australia Canada UnitedStates

Russia Germany China Brazil

Source: Statista 2016


Experian Public.

#vision2016

Growth of connected devices creates new

markets of opportunity for the TEC industries


Experian Public.

#vision2016

Disconnect due to non-payment rates

25%

6%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Overall Energy Telecoms & Cable


Experian Public.

#vision2016 Introducing the new

TEC Score 2.0


Experian Public.

#vision2016

11

Developed by utilizing consumer telecommunications, energy and cable data

Predicts the likelihood of a consumer becoming seriously delinquent or 90+ days beyond terms and eventually disconnected

Scored on multiple scorecards, over a 12 month performance period

► Includes up to four score factor codes + inquiry code

Larger scoreable population

What is the TEC Score 2.0?

900

400 HIGH

RISK

LOW

RISK

Score range


Experian Public.

#vision2016

Features:

Incorporates fresher data

Utilize best-in-class Premier AttributesSM

Tri-bureau capabilities

Large development sample covering telecommunications, energy and cable

Score range more consistent with other credit scores – new range 400-900

Advanced modeling practices – uses newer modeling practices and solid documentation and model governance

Stringent model governance standards

TEC Score 2.0

Experian’s brand new risk model


Experian Public.

#vision2016

Attribute contributions for VantageScore® 3.0

3% 5%

21%

11%

20%

40%

Available Credit

Recent Credit

Depth of Credit

Balances

Utilization

Payment History


Experian Public.

#vision2016

Attribute contributions for TEC Score 2.0

3%

12%

34%

5% 6%

41%

Available Credit

Recent Credit

Depth of Credit

Balances

Utilization

Payment History


Experian Public.

#vision2016

Model performance compare

KS values

54.4

51.6

52.9

50.6

48

50

52

54

56

TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0

KS

%


Experian Public.

#vision2016

16

0%

20%

40%

60%

80%

100%

5% 15% 25% 35% 45% 55% 65% 75% 85% 95%

Cu

mu

lative

% o

f b

ad

acco

un

ts

Cumulative % of accounts

Model performance

TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0 Baseline

Model performance

14% more BADS captured vs. TEC

1.0 in the worst 25%

136% increase over baseline

Worst Scoring Best Scoring


Experian Public.

#vision2016

Model performance

0%

20%

40%

60%

80%

30% 20% 10% 5%

% o

f B

ad

Acco

un

ts

Lowest scoring ranges

Worst scoring capture rate — % of bad accounts

TEC Score 2.0 TEC Score 1.0 Telerisk Score VantageScore 3.0

Score range of the new TEC 2.0 model

allows visibility into the worst 5%


Experian Public.

#vision2016

8%

42%

70%

84% 92%

96%

8% 27%

65%

85% 93% 97%

0%

20%

40%

60%

80%

100%

450 500 550 600 650 700

TEC Score 2.0 VantageScore3.0

Score cut offs

Percentage of bad accounts

Percentage of accounts

18

3% 18%

33%

45% 55%

66%

4% 14%

35%

51%

64%

78%

0%

20%

40%

60%

80%

100%

450 500 550 600 650 700

TEC Score 2.0 VantageScore3.0

Bad = 90+ or Disconnect, TEC 2.0

model’s performance definition is

customized to fit the TEC industry


Experian Public.

#vision2016

19

Percent scorable

98.7% 98.5%

92.3%

98.5%

88%

92%

96%

100%

TEC Score2.0

TEC Score1.0

TeleriskScore

VantageScore3.0

22%

78%

0%

20%

40%

60%

80%

100%


Experian Public.

#vision2016

What if a customer

cannot be scored

with the new

TEC 2.0 score?


Experian Public.

#vision2016

Gives a complete view of the consumer’s payment behavior

Enables you to expand marketable population

Gives underserved consumers better access and choices

Extended ViewSM

score

Experian is committed to helping consumers establish and build credit. Experian’s

Extended ViewSM score can help clients with the following:

Move beyond the traditional credit score and segment

underserved consumers for meaningful assessment


Experian Public.

#vision2016

Extended ViewSM

score

Percentage scorable

82% of records

scorable by either

TEC 2.0 or EVS

EVS = Extended ViewSM score

Pinned, scored

by TEC 2.0; 77%

Unscorable; 18%

Unpinned, scored

by EVS; 5%


Experian Public.

#vision2016

Unscorable distributions

0% 1% 4%

12%

31% 35%

14%

4% 1% 0% 0% 0%

0%

10%

20%

30%

40%

400-449 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-849 850-899 900-949 950-990

Dis

trib

utio

n

Extended ViewSM

score

Distribution for unpinned accounts

TEC Score 2.0

Distribution for thick files

23

1%

7% 10% 10% 11%

13%

23%

17%

7%

1%

0%

5%

10%

15%

20%

25%

400-449 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-849 850-900

Dis

trib

utio

n


Experian Public.

#vision2016

Extended ViewSM

score model performance

Apples-to-apples compare

0%

10%

20%

30%

40%

50%

30% 20% 10% 5%

% o

f b

ad

acco

un

ts

Lowest Scoring Ranges

Worst scoring capture rate — percentage of bad accounts

TEC Score 2.0 EVS

EVS = Extended ViewSM score


Experian Public.

#vision2016

50%

94%

83%

0%

20%

40%

60%

80%

100%

Data that provides a better hit rate

~88% increase

in the hit rate

for consumers

that had SSN

included in the

PII inquiry

submission data

Name &

address

Name, address

& SSN

Name, address

& DOB


Experian Public.

#vision2016

What’s next?


Experian Public.

#vision2016

Now what?

Data quality improvements for best hit rates

TEC 2.0

Extended ViewSM score

Continuous improvement to customer

acquisition waterfall

27

Validate and start using TEC 2.0

through your existing Experian interface today!


Experian Public.

For additional information,

please contact:

@ExperianVision | #vision2016

Follow us on Twitter:

#vision2016 [email protected]

https://www.linkedin.com/in/bethbayercpa

[email protected]

https://www.linkedin.com/in/chrismagnotti

[email protected]

https://www.linkedin.com/in/clara-gharibian-69146525


Experian Public.

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Choosing the best consumers in the telecommunications, # ......©2016 Experian Information...

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