TransUnion Introduces TruVision Alternative Bank Risk Score to Help Lenders Better Assess Consumers with Limited Credit Histories

Rhea-AI Summary

TransUnion (NYSE: TRU) has launched the TruVision Alternative Bank Risk Score, a new solution aimed at helping lenders better assess consumers with or no credit histories. The score, powered by TransUnion's OneTru™ platform, evaluates banking activities to predict financial behavior and loan default likelihood.

The solution comes at a critical time when only 35% of households earning less than $50,000 report having sufficient access to credit. According to FDIC data, one in six households lacks mainstream credit, with higher percentages among lower-income, less educated, and minority households.

The TruVision score can be used independently or alongside existing risk assessment tools, offering lenders a more comprehensive view of potential borrowers' financial behavior, particularly beneficial for evaluating thin-file or subprime borrowers.

Positive

• Introduction of new revenue stream through TruVision Alternative Bank Risk Score product
• Expansion into underserved market segment with significant growth potential
• Enhancement of existing product suite leveraging OneTru™ platform

Negative

• None.

New solution is enabled by the company’s OneTru™ platform and aims to increase transparency for lenders

CHICAGO, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Despite a strong employment picture, some consumers are still struggling financially due to elevated inflation and higher than normal interest rates. The lowest income households (those earning less than $50,000) face another challenge, with only 35% indicating they have sufficient access to credit and lending products.ⁱ In an effort to provide lenders with a clearer picture of thin- or no- file consumers, including those who may not be gaining sufficient access to credit, TransUnion (NYSE: TRU) introduced today the TruVision Alternative Bank Risk Score.

This score includes checking and banking data applicable to the short-term lending space and can be used to enhance lenders’ existing underwriting scores. It offers a more holistic view of a consumer’s financial behavior and enhances the accuracy of credit risk decisions. The TruVision Alternative Bank Risk Score is enabled by TransUnion’s OneTru™ solution enablement platform, which now houses the company’s short-term lending data.

This solution evaluates a consumer’s banking activities to assist in predicting their future financial behavior, particularly their likelihood of defaulting on loans or other credit obligations. The score complements the existing suite of tools that TransUnion already provides to lenders to help them in determining credit risk. It can be used with existing risk scores or as a standalone tool for underwriting.

“The addition of the TruVision Alternative Bank Risk Score to TransUnion’s existing Alternative Lending suite of credit risk scores offers lenders a deeper look at potential borrowers who may otherwise have no, or very limited, credit history, as well as subprime borrowers,” said Liz Pagel, senior vice president of consumer lending at TransUnion. “It can aid in improving the predictive power of risk models, helping to identify potential risks that might be missed when relying on a single data source.”

In addition to helping lenders make more informed decisions, this score can potentially offer some consumers with limited credit histories an alternate pathway to credit, by providing a more comprehensive view of their financial behavior, identifying those creditworthy consumers who may lack a traditional credit history but demonstrate responsible banking behavior.

A recent report from the Federal Deposit Insurance Corporation (FDIC) revealed that one in six households had no mainstream credit, and this percentage was significantly higher among lower-income households, those with a lower educational ceiling, and minority households. The report also indicated that those households without mainstream credit likely did not have a credit score with credit bureaus, making it that much harder to obtain credit moving forward.

TransUnion’s Q4 2024 Consumer Pulse found that lower-income consumer households have a much more difficult time accessing credit.

Lower Income Households Do Not Feel They Have Sufficient Access to Credit and Lending Products.

	Low (<$50K)		Medium ($50-99K)		High ($100k+)
Have Sufficient Access	35%		64%		80%
Neither Agree nor Disagree	31%		21%		11%
Do Not Have Sufficient Access	34%		15%		8%

Source: TransUnion Consumer Pulse, November 2024

“TransUnion has long provided lenders with access to a wide range of tools, resources, and data with which informed lending decisions can be made,” said Jason Laky, executive vice president and head of financial services at TransUnion. “In this increasingly complex economic environment, many consumers, lower income or otherwise, are seeking credit with limited or non-existent traditional credit histories. The use of a broad suite of alternative credit data tools offers lenders a new and important tool in assessing risk among these consumers.”

To learn more about how TransUnion gives lenders a Tru picture of consumers - helping them better assess creditworthiness and expand access to credit, click here.

For consumers looking to learn more about how to build their credit, click here.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

http://www.transunion.com/business

ⁱ Q4 2024 TransUnion Consumer Pulse study

Contact	Dave Blumberg
	TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

FAQ

What is TransUnion's TruVision Alternative Bank Risk Score and when was it launched?

TruVision Alternative Bank Risk Score is TransUnion's new credit assessment tool launched on February 5, 2025, designed to evaluate banking activities and predict financial behavior for consumers with or no credit history.

How does TRU's new Alternative Bank Risk Score benefit lenders?

The score helps lenders make more informed lending decisions by providing a holistic view of consumers' financial behavior through banking data, enhancing the accuracy of credit risk decisions for thin-file or no-file consumers.

What percentage of low-income households have sufficient access to credit according to TRU's Q4 2024 data?

According to TransUnion's Q4 2024 Consumer Pulse, only 35% of households earning less than $50,000 reported having sufficient access to credit and lending products.

Can TRU's TruVision Alternative Bank Risk Score be used as a standalone tool?

Yes, the TruVision Alternative Bank Risk Score can be used either as a standalone tool for underwriting or in conjunction with existing risk scores.

What market gap is TRU addressing with the new TruVision score?

TRU is addressing the gap in credit access for the one in six households that lack mainstream credit, particularly among lower-income, less educated, and minority households, as reported by the FDIC.