Oliver Wyman Analysis Shows 18% Growth in VantageScore Model Market Adoption
Stamford, CT (August 2, 2022)— An analysis of marketplace use of VantageScore models shows that the overall usage grew to approximately 14.5 billion credit scores by over 3,000 companies, which represents an approximately 18% increase since 2019 when a similar study was conducted.
The analysis was conducted by global management consulting firm Oliver Wyman, which examined how many VantageScore credit scores were used in a 12-month period between 2021 and 2022. The research also outlined which types of consumer lenders and other entities use VantageScore credit scores.
The Oliver Wyman analysis confirms that VantageScore credit score usage was widespread across consumer lending categories, including credit card, auto finance, and personal loans, as well as in functions where credit scores are often used, including pre-screen, marketing, origination, underwriting and portfolio management.
Among the specific findings:
SURGE IN USE FOR UNDERWRITING/ACCOUNT OPENING DECISIONS: VantageScore credit score use for underwriting/account opening decisions increased by 620MM or by 132% compared to the 2019 study*.
DEEP PENETRATION IN BIG BANKS: 9 of the top 10 banks, and 30 of the top 50 banks use VantageScore credit scores.
NON-BANK USE ALSO SURGES: VantageScore’s continued focus on consumer transparency and education is underscored by its growing use by consumer websites, which used approximately 4.8 billion VantageScore credit scores (approximately 1.7 billion more than 2019).
“The continued double-digit growth in usage of VantageScore by lenders and other users of credit scores is a testament to the model’s ability to both provide best in class predictive performance to facilitate access to mainstream financial services products and help enable financial inclusion,” said Silvio Tavares, President & CEO of VantageScore. “The Oliver Wyman data shows that lenders are demonstrating a continued willingness to test and adopt innovative data analytics that drive positive business and consumer outcomes.”
To download and review the full report, visit here.
*1 In the study, VantageScore credit scores used by companies (excl. consumer websites) in real-time/online method are assumed to be associated with underwriting/account opening decisions.