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The current landscape of Experian’s Small Business Credit ShareSM consortium is changing. Future development strategies for targeting growth areas such as nonfinancial trade data will be discussed. In addition, new aggregate and development efforts around the second generation of Small Business Credit Share acquisition and portfolio scoring models will be revealed.
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A current look at commercial credit consortium data
Brian DeLeo Santander
Mike White OnDeck
Dave Cashman Experian
#vision2014
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Growth
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Famous entrepreneur
When you’re green,
you’re growing;
when you’re
ripe, you rot.
“
”
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Data consortium update
Introductions
Growing the data consortium
Small Business Credit ShareSM product updates
Two success stories
Conclusion / Q&A
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Continued contributor and tradeline growth
Tradeline quantity
Tradeline variety
Self-feeding phenomenon
Growth
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Trade file growth
1.8 million new tradelines added since 2012
Small Business Credit ShareSM Trade File Growth
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Contributor breadth New tradeline breakdown
Services
Telecom
Shipping
Office
Technology
Manufacturing
Retail
Non-financial
60%
5% 2%
15%
3% 11%
4%
Credit Card
Line of Credit
I/L Term
Lease
Financial
41% 25%
23%
11%
Financial
Non-financial34% 66%
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Clients benefit from Small Business Credit ShareSM membership
Tactical benefits
Regulatory / compliance concerns
Strategic flexibility
Contributor summary
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Data consortium update
Introductions
Growing the data consortium
Small Business Credit ShareSM product updates
Two success stories
Conclusion / Q&A
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Key concept – trending activity across time
Average over time
► Balance average over past 3, 6, 12 months
Difference from average over time
► Current utilization – 3-month average utilization
Percent difference from average over time
► (Current utilization – 3-month average utilization) / 3-month average utilization
► (Current DBT – 6-month average DBT) / 6-month average DBT
New aggregates
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Predictive power validated
KS – 22% lift
Bad capture – 29% lift at 10%; 16% at 20%
New aggregates
96% of bads
at lowest
20% score
now fall in
lowest 10%
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Delivery Q3 2014
Available for use in modeling, segmentation, etc.
Complement existing 600+ aggregates
New aggregates
Existing 1.0 Aggregates
New 2.0 Aggregates
Overall 100 50
Financial Trade 100 50
Card 150 50
Loans/LOC 50 50
Lease 50 50
Non-Fin & other 125 50
Non-trade 50 0
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New blended score model with commercial-only option
Development sample – November 2010 through October 2012
Bad definition
Performance window
Expanded availability
New acquisition score
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Refined triggers improve strategy accuracy and reduce the false-positive rate
Risk mitigation
Retention of existing relationships
Phased approach
► Phase I – Business type
► Phase II – Product specific
Enhanced Account Monitoring ServiceSM triggers
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Data consortium update
Introductions
Growing the data consortium
Small Business Credit ShareSM product updates
Two success stories
Conclusion / Q&A
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Who are we:
Santander Consumer USA
Chrysler Capital division of Santander for commercial loans and leases
Entered commercial market, March 2013
Landscape for data:
Competitive landscape/other data options
Why Small Business Credit ShareSM data was selected
Use of Small Business Credit ShareSM data for custom score building
The testing environment and implementation process
Future use of data
Santander Consumer USA Brian De Leo – Vice President, Commercial
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Who we are:
OnDeck, founded in 2006
Over $1 billion in loans to date
Loans and line of credit
Technology and analytics
Landscape for data:
Why Small Business Credit ShareSM data was selected
How Small Business Credit ShareSM data gets combined with other internal / external data sources
Future use of data
On Deck Capital, Inc. Michael White, Senior Manager of Credit Analytics
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Data consortium update
Introductions
Growing the data consortium
Small Business Credit ShareSM product updates
Two success stories
Conclusion / Q&A
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Small Business Credit ShareSM is green and growing
► New contributors
► Growing trade file base
► Commitment to product development
Less obvious, but important benefits
► Operational risk
► Regulatory
► Competitive
Conclusion
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