When J.D. Byrider, a leading used car sales and finance enterprise, expanded geographically and organically, they needed to better identify risk and streamline deal structures. They turned to Equifax Ignite. To create a more robust profile on buyers, the Equifax team used Ignite to develop a configurable origination risk model that uses traditional credit data, augmented with alternative data sources such as telecom and utility information.
Ignite allows for a more accurate and wider-ranging risk assessment on buyers with varied profiles as well, which helps to reduce write offs and improve efficiencies. J.D. Byrider’s results with the solution included a 100 percent scoring of their applicant population, including those with no credit file or a thin credit file – reducing the number of applicants evaluated only by outdated credit models. Additionally, once lower risk applications were powered by more than a credit-only scoring model, J.D. Byrider was able to increase approvals by 10 percent with the same loss rate.
“My main priority was to enable the strongest and most innovative capabilities to mitigate risk and increase financial inclusivity for our buyers who happen to be subprime or deep subprime borrowers,” said Gary Harman, Chief Risk Officer, J.D. Byrider.
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