TransUnion Introduces TruVision Alternative Bank Risk Score to Help Lenders Better Assess Consumers with Limited Credit Histories
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.
TransUnion (NYSE: TRU) ha lanciato il TruVision Alternative Bank Risk Score, una nuova soluzione pensata per aiutare i prestatori a valutare meglio i consumatori con o senza storie creditizie. Il punteggio, supportato dalla piattaforma OneTru™ di TransUnion, valuta le attività bancarie per prevedere il comportamento finanziario e la probabilità di insolvenza del prestito.
Questa soluzione arriva in un momento critico in cui solo il 35% delle famiglie con un reddito inferiore a $50.000 riporta di avere accesso sufficiente al credito. Secondo i dati della FDIC, una famiglia su sei non ha accesso al credito tradizionale, con percentuali più elevate tra famiglie a basso reddito, meno istruite e appartenenti a minoranze.
Il punteggio TruVision può essere utilizzato in modo indipendente o insieme agli strumenti di valutazione del rischio esistenti, offrendo ai prestatori una visione più completa del comportamento finanziario dei potenziali mutuatari, particolarmente utile per la valutazione di mutuatari con file sottili o subprime.
TransUnion (NYSE: TRU) ha lanzado el TruVision Alternative Bank Risk Score, una nueva solución destinada a ayudar a los prestamistas a evaluar mejor a los consumidores con o sin historial crediticio. La puntuación, impulsada por la plataforma OneTru™ de TransUnion, evalúa las actividades bancarias para predecir el comportamiento financiero y la probabilidad de incumplimiento de préstamos.
La solución llega en un momento crítico, ya que solo el 35% de los hogares que ganan menos de $50,000 reportan tener acceso suficiente al crédito. Según datos de la FDIC, uno de cada seis hogares carece de crédito convencional, siendo las tasas más altas entre hogares de bajos ingresos, con menos educación y de minorías.
El puntaje de TruVision se puede utilizar de forma independiente o junto con las herramientas de evaluación de riesgos existentes, ofreciendo a los prestamistas una visión más integral del comportamiento financiero de los posibles prestatarios, siendo particularmente beneficioso para evaluar prestatarios con archivos delgados o subprime.
TransUnion (NYSE: TRU)은 TruVision Alternative Bank Risk Score를 출시했습니다. 이는 대출자들이 신용 이력이 없거나 적은 소비자를 더 잘 평가할 수 있도록 돕기 위한 새로운 솔루션입니다. 이 점수는 TransUnion의 OneTru™ 플랫폼에 의해 지원되어, 은행 활동을 평가하여 재정적 행동과 대출 불이행 가능성을 예측합니다.
이 솔루션은 연소득이 $50,000 이하인 가구 중 단지 35%만이 충분한 신용 접근성을 보고하는 중요한 시점에 등장합니다. FDIC 데이터에 따르면, 여섯 가구 중 한 가구는 주류 신용을 가지지 못하고 있으며, 저소득, 낮은 교육 수준 및 소수자 가구에서 비율이 더 높습니다.
TruVision 점수는 기존의 위험 평가 도구와 함께 또는 독립적으로 사용할 수 있어 대출자들에게 잠재적 대출자의 재정적 행동에 대한 보다 포괄적인 시각을 제공합니다. 이는 특히 얇은 파일이나 서브프라임 대출자를 평가하는 데 유용합니다.
TransUnion (NYSE: TRU) a lancé le TruVision Alternative Bank Risk Score, une nouvelle solution visant à aider les prêteurs à mieux évaluer les consommateurs avec ou sans historique de crédit. Le score, alimenté par la plateforme OneTru™ de TransUnion, évalue les activités bancaires afin de prédire le comportement financier et le risque de défaut de paiement.
La solution arrive à un moment critique où seulement 35 % des ménages gagnant moins de 50 000 $ rapportent avoir un accès suffisant au crédit. Selon les données de la FDIC, un ménage sur six n'a pas accès au crédit traditionnel, avec des pourcentages plus élevés parmi les ménages à faible revenu, moins instruits et issus de minorités.
Le score TruVision peut être utilisé de manière indépendante ou en complément des outils d'évaluation des risques existants, offrant aux prêteurs une vue plus complète du comportement financier des emprunteurs potentiels, ce qui est particulièrement utile pour évaluer les emprunteurs avec un dossier mince ou subprime.
TransUnion (NYSE: TRU) hat den TruVision Alternative Bank Risk Score gestartet, eine neue Lösung, die darauf abzielt, Kreditgebern zu helfen, Verbraucher mit oder ohne Kreditgeschichte besser zu bewerten. Der Score, der von TransUnions OneTru™-Plattform unterstützt wird, bewertet Bankaktivitäten, um das finanzielle Verhalten und die Wahrscheinlichkeit von Kreditausfällen vorherzusagen.
Die Lösung kommt zu einem kritischen Zeitpunkt, da nur 35% der Haushalte mit einem Einkommen von weniger als 50.000 USD angeben, einen ausreichenden Zugang zu Kredit zu haben. Laut FDIC-Daten haben einer von sechs Haushalten keinen Zugang zu herkömmlichem Kredit, wobei die Prozentsätze unter einkommensschwachen, weniger gebildeten und Minderheitenhaushalten höher sind.
Der TruVision-Score kann unabhängig oder gemeinsam mit bestehenden Risikobewertungstools verwendet werden und bietet den Kreditgebern eine umfassendere Sicht auf das finanzielle Verhalten potenzieller Kreditnehmer, was insbesondere für die Bewertung von Kreditnehmern mit dünnen Akten oder Subprime-Krediten von Vorteil ist.
- 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
- None.
Insights
TransUnion's introduction of the TruVision Alternative Bank Risk Score marks a strategically significant move in the $15 billion credit reporting market. This product addresses a critical market gap, targeting the estimated 37 million U.S. households with or no credit history, representing a substantial untapped revenue opportunity.
The timing is particularly strategic given current market conditions:
- Rising interest rates and inflation have created increased demand for alternative credit assessment methods
- The FDIC's report highlighting one in six households lacking mainstream credit provides regulatory tailwind
- Growing emphasis on financial inclusion aligns with ESG priorities valued by institutional investors
From a competitive standpoint, this launch strengthens TransUnion's market position against rivals Experian and Equifax. The integration with the OneTru platform creates a technological moat, potentially driving higher margins through operational efficiency and cross-selling opportunities.
However, key considerations for investors include:
- Implementation costs and timeline for lender adoption
- Regulatory compliance requirements under the Fair Credit Reporting Act
- Potential impact on loan default rates and model validation periods
- Competition from fintech companies offering alternative credit scoring solutions
The product's success could materially impact TransUnion's revenue growth in the consumer lending segment, particularly in the expanding alternative credit market. The focus on banking data analytics also positions the company favorably for future expansion into adjacent financial services markets.
Market analysis reveals compelling growth potential for TransUnion's new scoring solution. The addressable market is substantial:
- Approximately 65% of households earning under $50,000 report insufficient credit access
- The alternative lending market is projected to grow at a CAGR of 15-20% through 2027
- Financial institutions are actively seeking solutions to expand their customer base while managing risk
The product's market positioning is strengthened by several factors:
- Integration with existing underwriting processes reduces adoption barriers
- Focus on banking data provides a more reliable alternative to traditional credit scores
- Flexibility to use as a standalone tool or complement to existing scores enhances market appeal
This launch positions TransUnion to capture a larger share of the alternative lending market, particularly in the growing short-term lending segment. The timing aligns with increasing demand for alternative credit assessment methods amid economic pressures on traditional lending criteria.
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
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 (< | Medium ( | High ( | ||||
| Have Sufficient Access | ||||||
| Neither Agree nor Disagree | ||||||
| Do Not Have Sufficient Access | ||||||
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 | |
| david.blumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
What is TransUnion's TruVision Alternative Bank Risk Score and when was it launched?
How does TRU's new Alternative Bank Risk Score benefit lenders?
What percentage of low-income households have sufficient access to credit according to TRU's Q4 2024 data?
Can TRU's TruVision Alternative Bank Risk Score be used as a standalone tool?
What market gap is TRU addressing with the new TruVision score?
