LexisNexis Risk Solutions Launches RiskView Optics and RiskView Spectrum: A New Era in Alternative Credit Scoring

Rhea-AI Summary

On February 9, 2021, LexisNexis Risk Solutions launched two new alternative credit scores, RiskView Optics and RiskView Spectrum. These scores utilize a comprehensive view of consumer credit risk to enhance financial inclusion, effectively scoring over 90% of applicants without traditional credit scores. RiskView Optics combines non-credit life events with alternative credit inquiry data, while RiskView Spectrum integrates this with traditional credit data. The new tools aim to improve creditworthiness assessments, allowing lenders to offer competitive terms and reduce risk exposure.

Positive

• Enhances financial inclusion by scoring over 90% of no-file consumers.
• Combines traditional and alternative credit data for a comprehensive credit assessment.
• Helps lenders issue more competitive offers, potentially increasing acceptance rates.

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• None.

ATLANTA, Feb. 9, 2021 /PRNewswire/ -- LexisNexis® Risk Solutions today unveiled LexisNexis® RiskView™ Optics and RiskView™ Spectrum, two alternative credit scores supported by a comprehensive view of consumer credit risk culminating from years of innovation and research.

RiskView Optics and RiskView Spectrum are three-digit FCRA-compliant credit scores that provide a broader view into consumer credit worthiness to deliver a more predictive assessment for a higher percentage of new applicants. RiskView Optics delivers predictive credit scoring that combines non-credit life events and alternative credit inquiry data while RiskView Spectrum utilizes those insights in combination with traditional tradeline credit data.

These new tools can significantly boost financial inclusion by uncovering more creditworthy no-file consumers. RiskView Optics and RiskView Spectrum can score more than 90% of applicants who do not have a traditional credit score – often referred to as credit invisibles – with a high degree of predictive strength. The scores also allow creditors and lenders to issue more competitive offers to consumers. RiskView Optics and RiskView Spectrum find more near-prime and prime applicants whose credit worthiness are often under or overestimated by traditional credit scores alone to help creditors and lenders maximize application acceptance rates while reducing risk exposure.

For the first time in the credit risk industry, LexisNexis Risk Solutions is able to capture the three most essential pillars of consumer credit behavior in a single score:

1. Traditional tradeline credit data helps creditors and lenders better understand consumer creditworthiness
2. Alternative tradeline data builds a more expansive view of consumer credit responsibilities
3. Alternative non-tradeline credit data (life event, asset ownership, property records and others) fortifies understanding of consumer credit stability and ability to pay

"Many creditors and lenders are committed to the principles of financial inclusion and want to help consumers. With increasing competitive pressures, declining tolerance for financial losses and mounting regulatory and fair-lending scrutiny, credit risk professionals require access to more complete pictures of applicant creditworthiness, in order to minimize risk and better serve their customers," said Ankush Tewari, vice president of credit risk assessment at LexisNexis Risk Solutions. "Organizations need the broader risk visibility attainable through alternative credit data. The more insight, the greater the advantage. With our RiskView Optics and Spectrum solutions, lenders can make better credit decisions on nearly every U.S. consumer."

Visit RiskView Optics and RiskView Spectrum for more details on how creditors and lenders can better evaluate consumer risk. Attend a webinar on Mar 2, 2021 at 2:00 pm ET hosted by American Banker with Aite Group analyst Leslie Parrish and LexisNexis Risk Solutions senior director of credit risk strategy Kevin King: Surveying the Landscape of Alternative Data. 

About LexisNexis Risk Solutions 
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com. 

Media Contact:
Marcy Theobald
678.694.6681
Marcy.Theobald@lexisnexisrisk.com 

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SOURCE LexisNexis Risk Solutions

FAQ

What is the significance of LexisNexis Risk Solutions' RiskView Optics and Spectrum?

RiskView Optics and Spectrum offer a broader assessment of creditworthiness, scoring over 90% of applicants without traditional credit scores.

How do RiskView Optics and RiskView Spectrum improve credit scoring?

They combine non-credit life events and alternative data with traditional credit information, providing a comprehensive view of an applicant's credit risk.

When were RiskView Optics and RiskView Spectrum launched?

They were launched on February 9, 2021.

What is the impact of these new credit scores on lenders?

They allow lenders to make better credit decisions, reduce risk exposure, and offer more competitive rates.

Who is the parent company of LexisNexis Risk Solutions?

LexisNexis Risk Solutions is part of RELX.