The Banking Industry & VantageScore

Save yourself from unnecessary risk and assess potential borrowers more accurately

9 of the 10 largest banks used VantageScore credit scores in 2019

Banks and financial institutions use VantageScore credit scores more than any other industry category. From pre-screening applicants to underwriting and pricing new loans to managing existing accounts, their implementation spans credit decisions across the lifecycle of consumer loans.

The VantageScore Value

The mathematical underpinnings of the VantageScore platform allow banks to score customers and manage their portfolios with more confidence, because it can:

  • Better predict the likelihood of future serious delinquencies on any type of account, allowing lenders to make better credit decisions and evaluate risk.
  • Generate credit scores that are more consistent across CRCs – regardless of which one provides the score – so that score differences are minimal and can be attributed to differences in credit file information.
  • Provide credit scores to millions of previously “unscoreable” consumers.
  • Produce scores that are more stable across fluctuations in the market and consumer spending habits.

Banking Industry Performance

According to annual model validation results, VantageScore remains a highly effective consumer credit risk management tool, strong in all three performance dimensions relevant to lenders today:

  • Predictive Accuracy – The VantageScore model delivers superior predictive accuracy among prime and near-prime consumers, typically the most desirable segment for any lender. That performance increase boosts lenders’ ability to assess potential portfolio risks.
  • Universe Expansion – The VantageScore 4.0 model can score approximately 37 million more people than traditional models by analyzing consumers with no credit activity within the past six months. This allows the model to score millions of creditworthy people who have been unable to get a score before and have therefore been challenged in getting credit.
  • Consistency – The true tri-bureau model produces nearly identical risk assessments when pulling scores from multiple credit reporting companies (CRCs). This assures lenders get a more consistent picture of a consumer’s credit payment behavior, regardless of which CRC provides the score.

More Insights & Resources

See all the performance data and insights on VantageScore’s advantage in the banking industry.

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