Experian (Costa Mesa, Calif.) has launched three new predictive credit scores that it says will enable members of its Small Business Credit Share program to identify financial accounts that are the most likely to become delinquent, according to a press release. The three scores are the Commercial Credit Card Score, Retail Credit Card Score and the All Financial Score, which identifies business likely to go delinquent on a financial account with 12 months.
The new portfolio risk scores are supported by Experian's business data and advanced analytics capabilities and aim to help clients reduce costs and maximize revenue by allowing them to address accounts that could pose future risks to the business.
"We developed the new scores utilizing product-specific performance information based on recent economic conditions to optimize predictability. In fact, based on key statistical measurements, the new scores have outperformed other scoring models by as much as 60 percent in performance validations on financial portfolios," Allen Anderson, president, Experian's Business Information Services, said in the release.
Experian says that the portfolio risks cores will provide greater insight into financial portfolios, enabling members of the Small Business Credit Share to reduce costs associated with the manual review of marginal accounts. The credit share is a cooperative database that enables clients across multiple industries to contribute more detailed commercial payment information than is typically provided.