Communications and Utility Providers – Expand Your Market by Expanding Your View

October 10, 2017 Yolanda Thomas

Communications and Utility Service Providers Can Expand Their Market by Expanding Their View

Here’s a quick quiz for service providers in the communications, pay TV and utility industries:

You’re assessing the credit risk of new applicants and need access to the most complete view of their payment profile. You can: a) rely on your internal data; b) rely on your internal data plus credit data; or c) rely on your internal data, plus credit data, plus the customer account payment data from some of the leading service providers in your industry and similar industries.

Hint: the answer is ‘c’. By expanding your view to see how customers handle related accounts with other providers, you can gain the insight needed to confidently serve a wider audience.

Improve risk assessment with insights into customer account payment data

Instead of limiting your customer view by relying solely on internal data, service providers within the utility, pay TV, communications and home security industries can pool their industry specific customer payment data together and access the collective data through a shared database called the National Consumer Telecom and Utilities Exchange (NCTUE®).  The NCTUE database of alternative data includes over 100 other NCTUE members to fuel a powerful resource that includes more than 430 million records on more than 200 million consumers. In fact, some of the leading providers within your region or industry are NCTUE members, which means that the insights provided by their customer data is available to help you better detect risk associated with your own customers.

Better understand an audience you may be miscalculating

Consumers who lack credit—this includes thin-file, no-file, unbanked, underbanked—can be the toughest market to serve. That’s because, without a credit history to reveal how they manage their finances, it’s hard to predict their future account payment behavior. You’re forced to guesstimate customer risk and account deposits, which can set you up for future losses and increase your overall financial exposure.

The alternative data available through the NCTUE can help in these ways:

Get more “hits,” or record matches

You get comprehensive coverage of consumers, since it includes account payments for everyday bills—things that just about everyone uses such as utilities, pay TV and cell phones. That means you’ll get more “hits” or record matches on all customers, including those with and without credit.

Analyze millions more consumers and better predict risk

Adding the additional layer of NCTUE alternative data can expand your view to help you better understand several millions more consumers, including some of the 26 million that don’t have a credit file on record at the top three credit reporting agencies1.  NCTUE data helps identify your thin file or no-hit customers and reports how they pay other service providers like you. Customers who pay their monthly bills on time with other providers, are more likely to pay you on time as well. If they’re routinely behind on their bills, in collections or move without paying, that’s a strong indicator of higher risk.

Add-on to your existing data sources and grow your market

Incorporating NCTUE alternative data with credit data and internal customer data as part of your risk assessment process can help to measurably expand your view. This enables you to identify more customers, analyze more data, and ultimately grow your market – all while balancing risk.

To learn more about the NCTUE, download this quick infographic: DOWNLOAD NOW

To register for the upcoming NCTUE Annual Conference, November 8-9 in San Diego, click here.  Hurry, registration ends October 13th.

 

1https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/BecomingCreditVisible_Data_Point_Final.pdf

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