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Innovative Analytics is a data analytics and compliance firm founded by credit reporting and financial services professionals with over 75 years of combined experience in credit reporting, consumer lending, loan portfolio management and credit risk management. Innovative Analytics specializes in providing consumer credit risk management services to small and mid-sized financial institutions. Our cloud-based risk management system, powered by Equifax, delivers a comprehensive view into customer credit profiles to help lenders meet regulatory requirements, strategically manage portfolio performance, determine the proper level of funding for debt reserves and reliably predict future behavior.

Innovative Analytics’ Risk Management System utilizes predictive credit and risk-based attributes, scoring models and internal loan system data to proactively identify, measure and mitigate current credit risk and anticipate future credit risk within the consumer loan portfolio. Analysis can be performed in the aggregate or at the individual loan level and includes data visualization to increase the speed with which data can be interpreted and acted upon.



Credit Risk




Innovative Analytics helps lenders take a proactive credit risk management approach by delivering a comprehensive view into customer credit profiles to help:

  • Determine the proper level of funding for debt reserves
  • Identify candidates for credit limit increases and decreases
  • Gain insights into customer wallet share and debt utilization
  • Identify which customers are at the highest risk of delinquency
  • Allocate collection resources efficiently



"Excellence is not an accomplishment. It is a spirit, a never-ending process."--- Lawrence M. Miller


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Layne R. McDaniel

CPA, CGMA, President and CEO

Layne is co-founder and President of Innovative Analytics and also serves as President of Noesis Data and the Credit Bureau of Baton Rouge Foundation. He is a certified public accountant and chartered global management accountant and has worked in both the public and private sector. Previously, Layne served as President of Credit Bureau of Baton Rouge, Inc. and Credit Administration Manager for Bank One, Louisiana. Prior to that, Layne served as Audit Manager for the Financial Services Group of Ernst & Young in their Houston Office.

As one of the founding members of Innovative Analytics, Layne has played a key role in the development and enhancement of the data analytics used by Innovative Analytics.

Layne is a member of the American Institute of Certified Public Accountants, the Louisiana Society of Certified Public Accountants, and Consumer Data Industry Association.  Layne also serves on the Board of Directors of the PolitiCraft, Manship Theatre, Big Buddy Program, and Louisiana Dream Teachers’.  He is a member of the Baton Rouge Area Chamber, Rotary Club of Baton Rouge, Baton Rouge Area Foundation and various other civic and charitable organizations.

Layne received his Bachelor of Science Degree in Accounting from Louisiana State University in Baton Rouge, Louisiana.

(225) 922-4746

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Belinda Morales

Vice President

Belinda is co-founder and Vice President of Innovative Analytics and Noesis Data. She has over 20 years of experience in the financial services industry, specializing in credit reporting and data analysis. Prior to her current position with Innovative Analytics and Noesis Data, Belinda worked for the Credit Bureau of Baton Rouge.  Prior to that, she worked for Hibernia National Bank (acquired by Capital One) and First National Bank of Covington where her responsibilities included financial accounting and indirect lending.

Belinda is responsible for developing and implementing customized business strategies that help our clients increase revenue, minimize losses, and expand market reach. She serves clients in a variety of industries including financial services, manufacturing, telecommunications, automotive, healthcare, retail and insurance.

Belinda is FCRA certified and a member of the Consumer Data Industry Association, Baton Rouge Area Chamber, Louisiana Bankers’ Association, Louisiana Credit Union League, Louisiana Finance Association and the Louisiana Automobile Dealers Association. She has presented at numerous conferences on credit reporting, credit scoring, customer acquisition and retention, portfolio and risk management, fraud detection and prevention, debt recovery and compliance.

Belinda received her Bachelor of Science Degree in Finance from Louisiana Tech University in Ruston, Louisiana.

(225) 922-4703


Victoria H. Richard


Victoria is co-founder and Regional Market Manager for Innovative Analytics and Noesis Data. She has more than 25 years of experience in the credit reporting and data consulting industry. Victoria began her career in 1987 with Chilton Credit Reporting Services, and subsequently worked for TRW Information Services and the Credit Bureau of Baton Rouge. She serves clients in a variety of industries including banks, credit unions, finance companies, indirect lenders, mortgage lenders and more.

Victoria is FCRA certified and has taught and presented to numerous classes on credit reporting, credit scoring, customer acquisition and retention, portfolio and risk management, fraud detection and prevention, debt recovery and compliance.

Victoria is a member of the Lafayette Chamber of Commerce, Consumer Data Industry Association, Louisiana Bankers Association, Louisiana Automobile Dealers Association, Louisiana Credit Union League and Louisiana Finance Association. She is past president of the Acadiana Credit Executives and has served as Treasurer, Vice President and member of their Board of Directors.  She is also a past member of the Credit Professionals of Lake Charles and Southwest Chamber of Commerce.

Victoria attended University of Louisiana Lafayette in Lafayette, Lousiana.

(800) 568-2027 ext. 6616



  • Risk Management
    • Website - Analysis by Credit ScoreAs the lending landscape shifts due to economic uncertainty and increased regulations, the overall quality of consumer lending can change quickly. The ability to actively identify, measure and mitigate current risk and anticipate future risk is an essential part of any effective credit risk management strategy. Increasing emphasis on risk management over the past several years has caused many lenders to look more closely at risk within the non-commercial segments of their loan portfolios. Detailed portfolio analysis supported by data visualization can significantly increase the speed with which data can be interpreted and acted upon. An effective credit risk management system can identify customers developing credit problems long before they affect the profit margin.  Additionally, the identification of credit policy, loan review and audit exceptions are essential to an effective credit risk management system.


  • Current Expected Credit Losses
    • Debt reserves are not frequently considered a key business driver, but if they are misaligned, they can have a major impact on the bottom line. Having too much in reserve can mean considerable lost opportunity, but not having enough can be near catastrophic.
    • Innovative Analytics’ Risk Management System utilizes the Probability of Default/Loss Given Default (PD/LGD) model, incorporating credit scores and historical loss rates, to calculate current expected credit losses on consumer loans.  The probability of default (PD) is calculated at the consumer level based on credit score, industry, portfolio type, and the definition of default (90 days past due, charge-off, etc.).   Loss Given Default (LGD) is based on historical loss experience and can be adjusted for qualitative and quantitative factors such as local, regional, or national economic conditions.  A major advantage to the use of this technique is that it relies on the use of the same credit indicators financial institutions now use to underwrite loans and manage their loan portfolios, including risk score, loan term, and loan-to-value percentage.
    • Innovative Analytics’ Risk Management System also allows for the use of a second score in calculating CECL requirements.  Using a matrix approach and proprietary algorithms, Innovative Analytics calculates the dual score probability of default, which provides for greater segmentation and measurement of risk.
    • Website - Credit Losses by Credit ScoreReserves are established at both the aggregate level and individual loan level and can be segmented by loan category, loan type, branch, and officer.  Additionally, reserves can be segmented by credit score and risk rating.  Innovative Analytics also incorporates unfunded commitments into the CECL calculation.
    • The insights gained from Innovative Analytics’ Risk Management System supports more informed decisions with regards to debt reserves and helps ensure the maximum amount of funds are being put to work daily.


  • Risk Based Pricing
    • Risk-based pricing is often recommended as a better way to set prices on consumer credit products. It seeks to align loan pricing with the expected loan risk.  The measured difference in risk between each customer, or group of customers, is used to assign differentiated prices.  Pricing strategies can be measured and adjusted as the portfolio mix changes.
    • Website - Analysis by Interest RateAn effective risk-based pricing strategy starts with a system to properly rank order risk.  In theory, risk-based pricing will help align price and costs by increasing the pricing for higher-risk/higher-cost customers and decreasing the price for the lower-cost and better-risk customers.
    • Innovative Analytics’ detailed portfolio analysis and segmentation helps determine the effectiveness of current risk-based pricing policies and ensures products are priced right at inception to maximize profitability and reduce future losses.  Additionally, deeper insights into consumer credit profiles provide for an increased competitive advantage through optimal pricing strategies.
    • Innovative Analytics’ Risk Management System allows lenders to develop and maintain an unbiased pricing strategy that meets regulatory requirements.


  • Dual Score Strategy Development
    • While the overall bankruptcy rates for lenders is small, bankruptcies result in the highest dollar losses.  Additionally, bankruptcy laws limit collection activity.  As a result, more lenders are using a bankruptcy score in conjunction with traditional risk scores for both underwriting and portfolio management. This concept is known as a dual score strategy and is essential in risk management and fraud prevention.
    • Traditional risk scores capture traditional risk; however, bankruptcy behavior is different from a consumer credit profile perspective.  Incorporating a bankruptcy score with a traditional risk score provides better insight into consumers who may be Website - Dual Score Matrix RIsk Analysisoverextended but not necessarily going delinquent on their accounts. By capturing both aspects of risk, dual score strategies can identify consumers who may look good from a traditional credit profile perspective but are poised for bankruptcy. Thus, a dual score strategy allow lenders to keep approval rates up, while lowering overall risk within the loan portfolio.
    • Innovative Analytics’ Risk Management System utilizes a dual score matrix, combining both a bankruptcy score and traditional risk score, to calculate the dual score probability of default.  This approach provides for greater portfolio segmentation, credit risk management and effective cutoff strategies.


  • Wallet Share
    • Website - Wallet Share by Credit ScoreFinancial institutions collect substantial information on interactions with customers.  However, information about customers’ transactions with other financial institutions is often sparse or nonexistent.  As a result, most financial institutions manage their customer relationships based solely on internal information.  Unfortunately, studies have shown that the volume of customers’ transactions within a financial institution has little correlation to their overall volume of transactions.  Additionally, a small percentage of customers account for a large percentage of external transactions.
    • This would suggest that there is a considerable potential to increase wallet share with existing customers if they can be properly identified and incentivized to switch. Thus, the need for a more external view in relationship management, with insights into their customers’ relationships with competing financial institutions, including the size of each customers’ wallet and the financial institution’s share of it.
    • Innovative Analytics’ Risk Management System identifies wallet share at the consumer, portfolio, officer and branch levels, as well as by credit score range and loan type.  This allows for deeper insights into consumer credit behavior and provides expanded opportunities to pursue account growth and build marketing strategies.


  • Delinquency Analysis
    • Delinquencies are typically an early warning sign of financial distress; however, some delinquent customers make better candidates for collections than others.  Early detection of these customers can mitigate risk and improve collection efforts by identifying accounts with the highest payment potential.
    • Website - Deliquency DPD AnalysisAre your customers paying you but not other creditors?
    • Are they paying everyone else but you?
    • Are they consistently delinquent with all creditors or has their delinquency progressed further with you?
    • With deeper insights into consumer credit behavior, Innovative Analytics’ Risk Management System allows for early detection of potentially high-risk accounts, identifies customers who exhibit a higher propensity towards delinquency and drives more informed collections strategies.  Additionally, selective credit and risk-based attributes provide information on how customers are managing their debt with other creditors.  By understanding their complete credit profiles, better decisions can be made about where to deploy resources.


  • Credit Score Migration
    • An effective credit score migration model, with detailed analysis, will help highlight Credit Score Migrationpotential problem borrowers long before most other reporting methods. Studies have shown that a deterioration in credit score of two or more risk ratings is one of the best predictors of future charge-offs.  Credit score migration models allow you to more effectively set collection strategies, reduce or curtail credit limits, re-price lines of credit, and identify cross-sell opportunities.
    • Credit score migration strategies are used to maximize relationships with existing customers as their credit behavior changes over time. Identify opportunities to mitigate risk by re-evaluating open credit lines and exposing opportunities to offer new loan products to borrowers with improving credit scores.
    • Innovative Analytics’ Risk Management System allows for a deeper insight into portfolio performance by tracking credit score migration by both credit score range and degree of change.  This leads to decreased attrition within the customer segments you value the most.


  • Regulatory Compliance
    • Regulatory examinations have disclosed a wide array of risk management, account management, and loss allowance practices, many of which have been deemed inappropriate and have substantially elevated a financial institution’s risk profiles.  Supervisory review normally includes an assessment of the financial institution’s risk management practices for identifying higher-risk accounts and adverse changes in account risk profiles.  Identification of such matters assists management in implementing timely preventive and corrective actions.  Concerns may appear when the frequency of these actions is not commensurate with risk in the portfolio.
    • Innovative Analytics’ Risk Management System can assist in regulatory compliance by:
    • Attributes•Periodically refreshing risk scores and assessing the integrity of scoring systems.

      •Assessing utilization rates.

      •Evaluating payment patterns, including borrowers who may be current with you but delinquent with other creditors or who rely on additional lines to keep the account current.

      •Analyzing the success of specific products and marketing initiatives by assessing delinquencies and risk for each product or roll-out.

      •Determining the proper level of funding for debt reserves.

      •Monitoring performance of the collections, fraud, and recovery functions.


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Mobile And Online Banking Security During COVID-19: What You Need To Know

The coronavirus pandemic continues to shape the way people around the world live their daily lives. Both social distancing and calls to stay at home to avoid unnecessary interactions have meant rethinking how you approach daily tasks, including managing your money.

The coronavirus pandemic continues to shape the way people around the world live their daily lives. Both social distancing and calls to stay at home to avoid unnecessary interactions have meant rethinking how you approach daily tasks, including managing your...

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The coronavirus pandemic continues to shape the way people around the world live their daily lives. Both social distancing and calls to stay at home to avoid unnecessary interactions have meant rethinking how you approach daily tasks, including managing your money.

Amid the current uncertainty, banks have encouraged customers to take advantage of online, mobile and phone banking services in lieu of branch visits. According to a June statement from the Federal Bureau of Investigation (FBI), mobile banking use has surged by 50% since the beginning of 2020. While mobile and online banking offer convenience, increased reliance on mobile banking by both traditional brick-and-mortar banks and online-only banks brings more risk of cybercrimes.

The Federal Trade Commission (FTC) has stepped up its efforts to warn Americans about COVID-19 scams that may target you and your money during this already confusing time, including everything from offers for vaccines, to fake charities, to traditional email scams.

Unfortunately, times of genuine crisis bring out both the helpers and those who will try to exploit the unsuspecting. If you’re worried about what all of this means for your online banking security, there are several steps you can take to protect your information.

Get to Know Your Bank’s Security Procedures

The first step in keeping your online banking profile safe amid coronavirus concerns—and beyond—is knowing what measures your bank has in place to protect you.

Banks can implement multiple layers of security for online and mobile banking, including:

  • Secure Socket Layer (SSL) encryption
  • Automatic logout
  • Antivirus and anti-malware programming
  • Firewalls
  • Multi-factor authentication
  • Biometric and/or facial recognition technology

Together, these can act as a strong defense against hackers who may try to crack into your accounts online. If you’re not sure what your bank is doing to keep your online banking details safe against coronavirus fraud threats, check the website or mobile app first. And, if it’s not immediately clear, don’t hesitate to contact your bank to see what security safeguards are in place.

Put Multi-Factor Authentication to Work

Multi-factor authentication adds another layer of security to your online and mobile banking login process. When you enable multi-factor authentication, you’re prompted to enter a unique code, in addition to your login name and password, to access your account.

If your bank offers multi-factor authentication, here are some best practices for using it:

  • Do enable it across all devices that you use to access your online or mobile banking apps.
  • Don’t share passcodes with anyone over the phone or via text, and remember that your bank should not ask you for these codes.
  • Do pair multi-factor authentication with other security measures, such as fingerprint or facial scanning if your banking app uses that technology.
  • Do monitor who has access to your devices and consider using identification codes or biometrics to lock them when unattended.

Verify That You’re Using the Correct App

Though it may seem far-fetched, the FBI cautions mobile banking users against fake banking apps. Scammers can reproduce seemingly legitimate-looking banking apps mimicking those offered by major financial institutions.

Unsuspecting customers download the app from their device’s app store and enter their login credentials, handing over vital information to fraudsters. In some instances, these fraudulent apps may trigger an error message when you attempt to login. You’re directed to then provide your login credentials via text or email, unknowingly making that information available to scammers.

It’s estimated that nearly 65,000 fake apps were present in app stores during 2018 alone and that number may grow as scammers get more creative during the COVID-19 crisis. The FBI recommends only downloading mobile banking apps using a link provided by your bank or from a trusted and secure app store.

If you come across a banking app that looks suspicious, contact the bank to verify whether it’s legitimate. Use the bank’s direct customer service number, rather than clicking on any phone numbers inside the app, as those could be fraudulent.

Skip Using Public Wi-Fi to Access Online or Mobile Banking

Working from home and doing schoolwork online became part of the new normal for many individuals and families amid the COVID-19 outbreak. In an effort to ensure that people who need access to the internet have it, a number of internet service providers have established, at least on a temporary basis, free Wi-Fi hotspots in cities around the country.

While that’s convenient, using public Wi-Fi can put your online banking information at risk if the connection is unsecured. Public Wi-Fi can easily be hacked in multiple ways, including man-in-the-middle attacks, in which a scammer is able to essentially pull your banking information out of virtual thin air as it’s being transmitted from your device to the website or app you’re sending it to.

The safest bet is to avoid public Wi-Fi altogether and rely on secure internet access at home. But if the coronavirus pandemic has you leaning on public Wi-Fi for any reason, check to make sure the connection is secured before logging in to any online or mobile banking.

You can take security a step further by using a Virtual Private Network or VPN to log in to mobile and online banking over public Wi-Fi. A VPN allows you to use public Wi-Fi to get online but it creates an encrypted secure pathway for doing so.

Here are a few more tips for using public Wi-Fi in as safe a way as possible:

  • Disable the automatic connection feature in your mobile device so you don’t connect to a public network accidentally.
  • Make sure your firewall is enabled and file-sharing is turned off if you’re connecting via a laptop.
  • Check website URLs to make sure they’re secured (i.e., https or the visible lock icon) and avoid those that aren’t.

Update Your Online and Mobile Banking Passwords

This is a simple way to protect your online banking details at any time, but it may be particularly important during the current coronavirus situation. When people are distracted by the news, as many are now, that’s a prime opportunity for hackers and identity thieves to attempt to access your accounts by guessing at passwords.

If you haven’t updated your passwords recently, add that to your to-do list. And remember to make your passwords as unique as possible. These tips can help:

  • Create passwords using a combination of lowercase and uppercase letters, numbers and symbols.
  • Don’t assume changing one letter or digit of an old password is enough.
  • Consider using a phrase or acronym instead of a word.
  • Avoid common phrases or number sequences.
  • Make passwords a minimum of eight characters but ideally, choose passwords that are 15 characters or longer.

The FBI encourages consumers to think about using an online password manager if you struggle with remembering the passwords to your bank accounts. Going forward, establish a habit to update your passwords every three to four months for online and mobile banking.

Monitor Activity With Banking Alerts

Banking alerts can be a helpful tool in managing online security, especially if you don’t have time to log in to your bank account every day or multiple times a day.

With banking alerts, you can get an email or text notification when there’s new activity on your accounts. The types of alerts you can set up include:

  • Transaction alerts for debits and credits above an amount you specify
  • Failed login attempts
  • Password or personal information updates
  • Wire and ACH transfers
  • Daily balance tracking

Having alerts in place means you don’t have to constantly worry about whether your online banking details are in danger. If you get an email notifying you of a new debit transaction, for example, you can log in to verify that it’s something you authorized.

This can be a huge help in stopping identity thieves and hackers from draining your accounts without your knowing it. If you see an unauthorized transaction, you can contact your bank immediately to notify them of suspected fraudulent activity.

If you want added reassurance, you can still check in with your bank accounts daily through online or mobile banking. As you’re scanning your account activity, take note of anything that might look suspicious, such as a small purchase you don’t remember making. It’s not uncommon for hackers to send through a small transaction or two to see if they’re noticed, before making a bigger attack on your account.

Also, read through the messages in your online banking message center if your bank offers that feature. Your bank may send an automated confirmation for account updates or scheduled transfers from your account. If you see a message for a transaction you didn’t authorize, you can quickly follow up with the bank.

Be Cautious About Granting Access to Your Account

Financial apps can make managing money during a pandemic situation easier. For example, instead of having to withdraw cash at the ATM to pay back a friend, you can use a person-to-person payment app to send it electronically.

The catch is that many financial apps require access to your online banking information. This is how many budgeting apps work; you sync up your bank accounts and the app tracks your spending and deposits for you automatically.

That can make running your financial life easier when you’re stressed over COVID-19, but it could put your information at risk if you’re authorizing access for apps that aren’t secure or are at risk of being compromised. While your bank may be perfectly safe and taking steps to secure your online information, the payment or shopping app you’re using could be a target for hackers.

A simple way to minimize risk is to avoid using untrusted financial apps altogether. At the very least, it’s important to check the various layers of security protection a financial app offers. You also can apply that same rule to other apps that aren’t associated with mobile banking.

Banking trojans are apps that look like one thing—a game, tool, streaming service, etc.—but they’re designed to track your movements online. When you launch a legitimate banking app on your device, for instance, these trojan apps can record your login credentials without your realizing it. Again, being cautious when downloading apps is a way to protect yourself against such bad actors.

And don’t overlook the features and functions your bank’s mobile app offers. For example, many banks now offer their own person-to-person payments, so you don’t need to download another app to send and receive money. Other banks may offer budgeting tools that you can access online to keep tabs on spending. Bottom line, if you’re worried about banking security during COVID-19, less can be more when authorizing third-party apps.

Don’t Fall for Phishing Scams

During a crisis like the coronavirus, email, phone and text phishing scams often abound. For example, the FTC has identified at least one phishing scam involving fake emails that appear to be from the World Health Organization.

Phishing scams can have different aims. Some, like the WHO scam, attempt to get you to click on a link within the body of the email. When you click the link, you unknowingly download malware or tracking software to your device that allows scammers to steal your information.

Other scams can take a more direct approach to try and get at your money. For example, you might get an email or text from a seemingly legit charity asking for donations. You’re asked to provide your debit card number or bank account number to make a donation. Feeling charitable, you go along with it, only to find out after the fact that it was a scam.

Also, be on the lookout for emails or other communications from your bank that aren’t the real thing. A common tactic scammers use to phish is sending out emails from an address that at first glance makes it seem like it came from your bank. You assume it’s safe and click a link or reply with information that’s requested in the email. But it turns out that you’ve just shared your details with a scammer.

If you get any emails or texts from your bank that ask for personal or banking information, hit the pause button on replying. Instead, contact your bank directly to ask if they sent out the email. If the bank seems oblivious, that’s a clue that you’ve been targeted by a phishing scam. If you suspect a scam, report it to the FTC and the Anti-Phishing Working Group. And keep an eye out for suspicious emails going forward, to stay safe with online banking.

Let Your Bank Help You

As early as March, banks began adding individual coronavirus help pages to their websites—and displaying COVID-19 info banners on their mobile apps—to give their customers a definitive source for accessing the help they need.

In many cases, what started as a basic expression of concern (with or without a few contact phone numbers) has turned into a detailed repository of both bank-specific and health-specific information resources for banking customers, which can help safeguard you, your family and your money—both during the COVID-19 crisis and beyond.

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3 Actions to Take Now to Improve Your Account Management

During the new realities of the current economic crisis, financial marketers are wondering how to mitigate delinquencies and defaults in order to preserve their consumer credit portfolios

By Jay Wooley During the new realities of the current economic crisis, financial marketers are wondering how to mitigate delinquencies and defaults in order to preserve their consumer credit portfolios. As you may already know, account management programs help keep you...

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During the new realities of the current economic crisis, financial marketers are wondering how to mitigate delinquencies and defaults in order to preserve their consumer credit portfolios. As you may already know, account management programs help keep you ahead of risk and find opportunity inside your customer portfolios. But you may not be aware of some specific ways to use solutions to proactively manage portfolio performance.


With increasing unemployment during COVID-19, it’s worth looking more closely at two significant key indicators: change in employment or income. This can help better evaluate a consumer’s ability to pay their debt obligations.

Employment data offers the quickest way to tell if you have customers who have lost their job or are on a reduced salary.

Near-real-time employment data can be infused into your decision-making to help you gain a broader perspective. By assessing consumer stability you’ll gain deeper insights about their ability to pay their debt. This can help inform credit line management, loan or payment modification, contact prioritization and credit reissue decisioning.

Our Customer Portfolio Review includes employment and salary income information from The Work Number, a proprietary database owned by Equifax. The database houses payroll information from hundreds of thousands of employers nationwide. Including Fortune 500 companies, as well as small, regional and local employers.

Adding this layer of review allows you to stay on top of one of the most important factors of your customers’ financial situations.


With the pandemic causing fast-changing market conditions, it’s critical to increase the frequency of your account reviews. You want to be sure you have the most current updates on your customers’ status and segments of your portfolio. You’ll want more frequent credit data points to know what your customer is experiencing and their capacity to withstand undulation.

Doing reviews annually, semi-annually or even quarterly may not be often enough.

We strongly recommend that companies increase the frequency of their portfolio reviews to monthly.

You can easily configure your Customer Portfolio Review to give you tailored, highly specific details as COVID-19 plays out. This data can reveal everything from current credit status and debt-to-income ratios to even the potential for future bankruptcy. Custom attributes, account management models and scores can also be added for a more tailored solution.

To get even more granular information and trends in near-real-time, add some Account Management Triggers to your reviews. These alerts can tell you when people stop paying their financial obligations, such as a mortgage, auto loans or other debts. They can also help identify consumers with recent changes in credit activity, near-term risk of default or late payments.

Additionally, you should consider implementing a monthly or weekly trigger program that flags just those accounts that are at risk. This can save you from having to perform an entire portfolio review every month or quarter. Because triggers are also customizable, they allow you to focus on the types of delinquencies that matter to you. Delinquency types include mortgage, personal finance, retail, HELOC, student loan, auto loan and credit card.


Despite what you may read in the news, many people are still resilient and will ride out the turbulence just fine.

It will be important for lenders to understand their customers and prospects’ differing levels of resilience. We recommend using a resilience measure such as the Equifax FICO Resilience Index. This helps credit marketers rank order consumers with respect to their resilience or sensitivity to an economic downturn. Higher resilience consumers tend to have fewer credit inquiries, fewer active accounts and lower total revolving balances.

This can help answer questions such as, “which ‘680’ consumers are more likely to go seriously delinquent during economic stress?”  And such measures can help you potentially avoid taking broad measures that impact insensitive or more resilient consumers unnecessarily.

Remember, you don’t have to be a big, sophisticated enterprise to take advantage of these customer account management techniques. For organizations who may want more simple solutions requiring fewer resources to implement and manage, those options are also available.

See how you can use these solutions to maximize performance in your portfolio while you ride out these turbulent times.

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Equifax: Delinquency ‘not as high as it could be’

Younger customers are navigating their budget challenges created by the coronavirus pandemic better than their older contemporaries.

Equifax shared its latest look at auto-finance delinquency based on data available through April 28. While experts said their overall delinquency reading is “not as high as we were anticipating it could be,” Equifax did find younger customers are navigating...

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Equifax shared its latest look at auto-finance delinquency based on data available through April 28. While experts said their overall delinquency reading is “not as high as we were anticipating it could be,” Equifax did find younger customers are navigating their budget challenges created by the coronavirus pandemic better than their older contemporaries.

According to the data sent to SubPrime Auto Finance News this week, delinquent contracts surpassed 3.17% of all outstanding auto financing. During a four-week stretch from April 7 through April 28, the number of delinquent accounts grew from 2.58 million to 2.63 million. The balance attached to those contracts also rose from $33.58 billion to $33.89 billion.

Equifax pointed out that April typically represented a cyclical decline in delinquency because some customers use their tax refund money to bring their accounts back to current. Jennifer Reid, vice president – automotive marketing & strategy leader – U.S. information solutions (USIS) at Equifax, touched out analysts’ suspicions about what the auto-finance delinquency data might be before gathering it and then their reaction when they uncovered the figures.

“Overall, we were generally expecting delinquency to increase given the unprecedented impacts from COVID-19. However, I think what was interesting is that it is not as high as we were anticipating it could be,” Reid said.

“While we recognize that it is still early, it appears that consumers are still paying their debt,” she continued. “We are anticipating delinquency to stay relatively lower, at least in the near term, due to enhanced unemployment benefits, stimulus and accommodations being made by lenders under the CARES Act which will keep positive accounts reporting positive.

“We will need to continually watch these trends closely to see if any additional economic impact from COVID-19 is realized,” Reid went on to say.

Equifax’s latest data also indicated that younger consumers are maintaining their contracts at better rates than older customers. Equifax indicated customers who fall into Gen Z (23 and younger), millennials (age 23-39) and Gen X (40-54) have seen their delinquent balance stay nearly steady during the reporting period at 2.04 million accounts.

But for customers age 55 and older, the number of delinquent contracts rose from 556,000 to 582,000 with the outstanding balance involved growing from $6.99 billion to $7.25 billion.

Reid offered a reason why thus far younger demographics have better delinquency performances currently as opposed to older populations.

“Typically, the younger demographic has less overall financial obligations, with the exception of student loan debt. In response, we saw the CARES Act provide relief in the way of suspending student loan payments until Sept 30, and this in conjunction with the other forms of assistance,” she said.

While the delinquency data might not be as dire as Equifax initially suspected, there appear to be consumer ingredients in the marketplace that could lead to more deterioration.

Also released this week, LendEDU published its third survey of 1,000 adult Americans, tracking how the pandemic is impacting finances. Among the newest highlights:

• 26% of eligible respondents have still not received their stimulus checks, while 52% of those who have been laid off have filed for unemployment benefits but 54% have yet to receive those unemployment benefits.

• Amongst those individuals who haven’t yet received unemployment benefits, 79% have already had to use funds from a savings account to cover expenses, 86% are worried about running out of money and 42% have had to take on more credit card debt then desired.

• 62% are concerned about their retirement savings, which is down from 72% on April 1. The drop could be due to the strong performance of the market as of late.

• The average American has spent $987 on food and supplies since the pandemic started here in the U.S. This is up 56% from the second survey and 194% from the first survey.

• Once lockdown measures are lifted, 26% of respondents said it will take them between one and three months to begin going out again and spending money as consumers like they used to, while 18% said it will take them 3-6 months, and 16% said between two weeks and one month. 13% said between six months and one year, 10% said immediately, and 7% said over one year.

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