Lender usage of VantageScore models is wide-reaching and mainstream.
A recent study conducted by Oliver Wyman indicates that VantageScore usage spans all credit industries (except the mortgage market) and across all functions where credit scores are used, including customer acquisition/marketing, credit decisioning, portfolio management and in capital markets.
According to the report, the VantageScore models accounted for approximately 12.3 billion of the credit scores used between in the period between July 2018 – June 2019.
More specifically, Oliver Wyman’s study of VantageScore market adoption also includes the following findings:
- More than 2,500 unique users of VantageScore credit scores, including 2,200 financial institutions.
- Credit card issuers and banks and thrifts accounted for over half (52%) of all usage of VantageScore credit scores.
- Nine of the 10 largest banks and 29 of the 100 largest credit unions used VantageScore credit scores in one or more lines of business.
- Over 3 billion VantageScore credit scores have been provided to consumers to empower them to practice good credit health habits. Nationwide, most consumers use VantageScore credit scores as a proxy for how a lender might interpret their creditworthiness.
Adoption in secondary capital markets:
- Secondary Capital Markets’ Most Sophisticated Institutional Investors
- Major ratings agencies recognize and accept VantageScore in the ratings of securities (ABS)
VantageScore is recognized by the top federal regulators across all major credit industries
All VantageScore models are empirically-derived as well as demonstrably and statistically-sound; using proven testing methods that are central to our own analytical approach.
Accordingly, VantageScore regularly engages with the prudential financial regulators to educate them about our models, including the U.S. Treasury Department, Office of Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), National Credit Union Administration (NCUA) and the Federal Reserve Board, among others. Regulatory recognition is further shown by the thousands of regulated lenders who use our models millions of times each day.
VantageScore models are also specifically used or referenced by a number of key financial regulators:
- Consumer Financial Protection Bureau (CFPB) – Federal Housing Finance Agency (FHFA) Mortgage Database
- 2021 Specifications for submitting Home Mortgage Disclosure Act (HMDA) data to the Federal Financial Institutions Examination Council (FFIEC)
VantageScore is also embedded in other major industry platforms:
- Mortgage Industry Standards Maintenance Organization (MISMO) 3
- Nationwide software systems enabling lender/credit bureau communication
Get In Touch with Us
Would you rather speak with someone directly? Have additional questions? Please get in touch with us here.