VantageScore Solutions has been awarded two new patents for its credit scoring model: one for its unique approach to segmentation, and another for how it delivers consistent credit scores using data from different Credit Reporting Companies (CRCs).
“The VantageScore model is the embodiment of innovation, and we are extremely pleased to be able to protect that innovation and allow lenders to take advantage of new advancements in the area of predictive analytics,” said Barrett Burns, president and CEO of VantageScore Solutions. “Providing the highest level of accuracy, consistency and segmenting consumers appropriately enables lenders to have the highest level of confidence in their risk and credit decisions.”
The first, called “Methods and Systems for Segmentation Using Multiple Dependent Variables,” recognizes model characteristics that amplify performance associated with the origination of credit accounts. More specifically, the patent focuses on the composition of behaviors in each segment, which are optimized such that performance for originations has improved over and above conventional methods. The patent was issued in October.
Issued in July, the second new patent, called “Methods and Systems for Multi-Credit Reporting Agency Data Modeling,” joins four previously granted patents in protecting VantageScore Solutions’ approach to delivering more consistent credit scores using data from all three national Credit Reporting Companies (CRCs). Traditional credit scoring models use varying definitions of trade data across CRCs, which contributes to inconsistent credit scores. VantageScore Solutions’ patented approach allows its model to be applied universally across all three CRCs, resulting in more consistent scores. VantageScore Solutions offers the only true tri-bureau models in the marketplace.
These new patents, combined with VantageScore’s earlier ones, provide intellectual property protection for the company’s unique scoring model, and encapsulate the VantageScore model’s ability to generate more consistent credit scores.
“Our now-patented approach allows lenders to minimize risk at the outset rather than trying to manage exposure once it’s on the books,” said Sarah Davies, senior vice president of VantageScore Solutions for analytics, product management and research.
VantageScore Solutions also has several other technologies that are patent-pending.