Fair, Isaac & Co. has hooked up with Tans Union Corp. to offer a system that measures anticipated revenue from credit card prospects.
The product, called PreScore Revenue Score, uses Trans Union credit profiles to project relative revenue likely to be generated during the 12 months after an account is opened.
By fine-tuning solicitations according to revenue, issuers can target lower risk, high-profit prospects and reduce account acquisition costs.
Available to Prescreen Clients
San Rafael, Calif.-based Fair Isaac, the leading provider of credit scoring systems, offers the product as part of its PreScore analytical and consulting service. It is also available as RPM - Revenue Projection Model - to customers of Trans Union's prescreen services.
The two companies also collaborated on Reward, announced in September, which helps lenders project collections on delinquent accounts.
"PreScore Revenue Score adds a new dimension that helps fine-tune solicitation strategies," said Careen Foster, Fair Isaac's credit bureau product manager. In tandem with Fair Isaac's PreScore or Trans Union's Empirica product, the score "helps determine the tradeoffs between risk and revenue, allowing bank card issuers to expand their current mail base while controlling risk."
Fair Isaac said it developed the revenue score using an extensive national sample of card issuers' performance information and accompanying credit reports from Chicago-based Trans Union.
