TransUnion Expands Credit Access to More Americans with Acquisition of FactorTrust
November 14 2017 - 6:15PM
TransUnion (NYSE:TRU) announced today the acquisition of
FactorTrust, a provider of alternative credit data, analytics and
risk scoring information that empowers lenders to make more
informed decisions, and increases financial inclusion to a wider
population of consumers.
The acquisition reinforces TransUnion’s position as a provider
of consumer reporting models that capture a wide range of positive
payment behaviors. The addition of FactorTrust’s short-term and
small dollar lending data to TransUnion’s suite of credit solutions
gives lenders the information they need to offer responsible
borrowers a broader range of credit products, supported by
TransUnion’s robust data security, technology and customer service
infrastructure.
Short-term and other small dollar loans are the largest category
of consumer credit obligations not currently part of nationwide
credit reporting agency databases. In many cases, historically
underbanked consumers have selected short-term loans because an
insufficient credit history left them with few options. The breadth
of data offered through TransUnion’s purchase of FactorTrust will
provide lenders with a more comprehensive view of consumers’
financial obligations and payment performance, expanding consumer
choice.
“Access to credit is the building block of a strong American
middle-class economy,” said Jim Peck, TransUnion’s president and
chief executive officer. “With the acquisition of FactorTrust, we
will be able to capture a wider variety of positive data that can
be a stepping stone to building consumers’ credit profiles, helping
people access credit and, ultimately, improve their standard of
living.”
Adding small dollar loan data to its credit reporting framework
also positions TransUnion to help customers streamline compliance
with the Consumer Financial Protection Bureau’s new small dollar
lending rule. The rule is designed to protect consumers from
securing short-term and balloon-payment loans without the ability
to repay according to the terms of the agreement. With visibility
into consumers’ traditional and alternative credit obligations,
TransUnion will be able to provide all of the data lenders need to
comply.
TransUnion has a long history of market innovations that promote
financial inclusion. A pioneer in trended data, TransUnion’s
CreditVision Link Scores are the only scores in the market that
combine directional trended data and alternative credit data, such
as payment history and small dollar lending. CreditVision Link
Scores allow lenders to score over 60 million more people versus
traditional models, and are proven to accurately score more than
90% of applicants typically returned as no-hit or thin-file.
FactorTrust’s short-term and small dollar loan data extends this
inclusiveness.
“FactorTrust is a strong addition to TransUnion’s business,”
said Steve Chaouki, executive vice president of TransUnion’s
financial services business unit. “FactorTrust’s approach to
complete tradeline reporting aligns with TransUnion’s business
model, and the inclusion of more alternative data in financial
institutions’ credit and underwriting decisions will enable our
customers to better segment risk, allowing them to serve a broader
set of customers across the credit spectrum.”
“Joining TransUnion is a great match for FactorTrust,” said Greg
Rable, of FactorTrust. “We share a commitment to serving consumers
and customers with the highest ethical and compliance standards.
Our products complement TransUnion’s slate of online and batch
solutions, and our combined data will expand options for consumers
and lenders.”
The acquisition closed on November 14, and financial terms were
not disclosed. About FactorTrust Since 2006,
FactorTrust has provided the alternative credit data, analytics and
risk scoring information that lenders need to make informed
decisions about the consumers they want. The company is
relentlessly dedicated to “more” through proven analytics and clean
credit information that provides lenders opportunities to grow
revenue, meet compliance regulations and serve consumers looking to
build better lives with more credit options. The Atlanta-based
company utilizes an internal team of predictive analytics experts
and statisticians combined with a deep, proprietary database of
underbanked consumer loan performance and best-in-class data
sources.
About TransUnion (NYSE:TRU) Information is a
powerful thing. At TransUnion, we realize that. We are dedicated to
finding innovative ways information can be used to help individuals
make better and smarter decisions. We help uncover unique stories,
trends and insights behind each data point, using historical
information as well as alternative data sources. This allows a
variety of markets and businesses to better manage risk and
consumers to better manage their credit, personal information and
identity. Today, TransUnion has a global presence in more than 30
countries and a leading presence in several international markets
across North America, Africa, Latin America and Asia. Through the
power of information, TransUnion is working to build stronger
economies and families and safer communities worldwide.
We call this Information for
Good. http://www.transunion.com/business
Contact Dave
Blumberg
TransUnion
E-mail
dblumbe@transunion.com
Telephone 312-985-3059
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