Fiserv teams with TransUnion for loan origination system
Financial services company Fiserv and credit reporting agency and risk information provider TransUnion have joined forces, reports Julie Muhn at Finovate (Banking Technology‘s sister company).
Under the agreement, Fiserv will integrate TransUnion’s CreditVision Link to increase precision of scoring and risk modeling in its Automotive Loan Origination System.
Specifically, Fiserv will leverage data from TransUnion to identify high-risk and high-potential borrowers, including thin-file applicants, based on an evaluation of their credit application. This addition helps serve the underbanked population, raising Fiserv’s reach to potential underserved borrowers to 60 million. The additional data has also boosted the “super prime” customer base by 23 million.
Steve Chaouki, executive vice-president and head of TransUnion’s financial services business unit, says the integration “enables lenders to score approximately 95% of the US adult population”.
CreditVision Link uses alternative data sources that include 30 months of data on factors such as address stability, checking account history, microloans/ alternative lending, and property ownership.
TransUnion made a move to bolster the service last month when it acquired FactorTrust, a company specialising in alternative credit data, analytics, and risk-scoring. The terms of the deal were not disclosed.
