Real Results from Real Partnerships

COREMETRIX worked together with a credit card issuer to improve access to conventional credit among the neglected consumers that did not met the standards of the current credit policy. We support the Client’s primary goal of increasing market share by increasing the applicants’ acceptance rate without affecting the company’s level of risk. Our team created a hybrid model that combines the traditional score provided by a Credit Bureau and the psychometric score. The COREMETRIX solution identified a significant proportion of rejected customers who were within the appetite of Customer’s risk. By applying psychometric data, the Client experienced an increase in access to their services without incorporating any additional risk, and even reducing it in some new segments to be incorporated.

For car insurances, it can be clearly seen that the link between personality traits, behavior and lifestyle influences driving behavior, and thus, determines the likelihood and severity of claims. COREMETRIX can model this risk by measuring key psychometric traits such as optimistic bias, the seek of strong thrills, irritability and awareness to model the risk. We demonstrated the ability of the psychometric score to separate the population of clients with high probability and low probability of claims.

The client is a credit card issuer looking to rapidly expand its loans by targeting individuals with little or no track record in the traditional Credit Bureau. Its internal risk modeling department wanted to have a score capable of classifying and segmenting the population of individuals to be able to select those with a good profile of compliers to be incorporated.

The Results

The final score model was implemented and allowed to approve 11% of clients with no credit history and 9% of individuals with a low score from the Credit Bureau. These new populations represent approximately 60% of the new requests, therefore the impact on new approved requests is significant. It allowed to grow the approval rate up to 35%, with delinquency rates significantly lower than those of the approved portfolio of individuals who had credit history. The incorporation of Coremetrix, achieved the double objective of achieving a significant increase in the general volume of loans, while maintaining, and even improving, the risk profile of the overall portfolio.

Previously Implemented Model

Model Implemented by Coremetrix