Credit

Order Form

    This individual Report Credit Scoring as a Competitive Differentiator is available for purchase. This Report is available to members of Mercator Advisory Group’s Credit Advisory Service. Please be advised that this Report is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Report contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).

    While the Report represents significant analyst time invested, there is no means of our ascertaining if it will fully meet your specific intended purposes. Typically, these Reports form the basis for future discussions with our clients where we are able to fine-tune additional information that we have gathered in the construction of the series of Reports (or locate new information rapidly due to our exclusive focus on gathering information in the payments industry) for specific member needs.

    Unfortunately, in fairness to our paying members, we are not able to offer this level of support for a single Report purchase. We will, however, credit any Research Document purchase against the future purchase price of the service should you become a member within 30 days of purchasing the document.

    The price for individual Report purchases is $2450 per document. 

     

    Use the form below to request this individual Report purchase or

    Click here for a fax-back order form

     

     

     

Credit Scoring as a Competitive Differentiator

Alternative models of credit scoring: new options, new risks

Mercator Advisory Group’s new research report examines innovations in credit scoring and alternative lending.

Automated credit scoring, an innovation pioneered by FICO during the 1950s, serves the global credit card business well, but saturated markets need to develop new customer streams to fuel growth and offset attrition.

New methods to discover potentially creditworthy new customers outside the bounds of traditional credit scoring are emerging for both consumer credit and small business credit. Credit cards have a particular need to reach beyond traditionally saturated customer segments such as high net worth and mass affluent. Small businesses with limited credit history also have an urgent need for credit.

Mercator Advisory Group's latest research report, Credit Scoring as a Competitive Differentiator, discusses how traditional score functionality adapts to the current market and the potential of disruptive models.

"In order to maximize lending opportunities, lenders must stay at the forefront of credit scoring innovation," comments Brian Riley, Director, Credit Advisory Services, Mercator Advisory Group,  author of the report. "Some innovations are exciting but have not been proven through stressful business cycles, so be certain to balance risk and reward."

This report contains 28 pages and 15 exhibits.

Organizations mentioned in this research report include: Barclaycard US, Branch.co. Consumer Financial Protection Bureau (CFPB), Equifax, Experian, Federal Reserve Bank of Philadelphia, Federal Trade Commission (FTC), FICO, Capital One, Discover, Lending Club, Lenddo, LexisNexis, Mintel Comperemedia, On Deck Capital, Prosper Marketplace, Small Business Financial Exchange (SBFE), Social Finance (SoFi), TransUnion, U.S. Department of the Treasury, ZestFinance.



Highlights of the research report include:

  • Alternative lenders posing retention issues for traditional institutions
  • Reaching underserved customers
  • Alternative methods for determining creditworthiness
  • A new approach to customer engagement
  • Using credit scoring to build deeper customer relationships