Credit Strategy Management Inc. has introduced a new software, called Datakey, which allows lenders to analyze credit bureau data in-house.

The Atlanta-based credit scoring and modeling specialist said that lenders may use Datakey to develop underwriting criteria or to improve marketing efforts by running tests on their portfolios.

"Credit bureau data is invaluable in research and development efforts," said John Y. Coffman, president of Credit Strategy Management, "yet the difficulty and cost of assembling this information has made using it problematic for creditors."

Most lenders either hire other companies to process credit bureau data or they develop their own software, according to Credit Strategy Management. But outsourcing can be expensive, because most vendors charge a fee per bureau report.

Household International assisted in the development of Datakey, which it has been testing for the past few months on a variety of financial products. Household is using the software to produce collections and new application models as well as models that analyze how customers utilize credit. Previously, Household outsourced such functions and Larry Boris, its director of business analysis, expects to reduce expenses using Datakey.

The software will be marketed aggressively this year to large and midsize banks, said a spokeswoman for Credit Strategy Management.

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