New and Enhanced CreditVision? New to Credit Score (NTC)

Assess New-to-Credit borrowers with confidence

Expand your reach with precision scoring for New to Credit consumers

The Indian retail credit landscape is evolving at a very high pace. The credit literacy across geographies has improved immensely over last few years. With improved credit literacy, demand for credit among first-time borrowers i.e. New to Credit borrowers has increased significantly. New to Credit borrower (NTC) segment contributes a little over 20% of the total inquiries. However, approval rates and the quantum of loans sanctioned to NTC segment is significantly lower compared to existing to credit (ETC) consumers. Primary reason for low approval rates is unavailability of information that can be utilized to gauge structural risk associated with the NTC consumer.

What is CreditVision? New To Credit (NTC) Score?

TransUnion CIBIL’s new and enhanced CreditVision? New To Credit (NTC) Score equips financial institutions with a cutting-edge tool for evaluating the risk associated with New-to-Credit consumers. This enhanced NTC score utilizes a sophisticated lookalike model, identifying more nuanced segments than the previous version. By integrating trended data from the credit bureau – such as payment histories, balances, and inquires, it accurately predicts the likelihood of a borrower defaulting on their first loan on a score ranging from 101 to 200.

The new and enhanced NTC score empowers lenders to confidently tap into new opportunities while maintaining robust risk management practices. With the enhanced NTC score, financial institutions can make informed lending decisions, expanding their customer base without compromising on risk. The score not only facilitates more precise risk assessments but also supports strategic business expansion in the competitive financial landscape.

Key highlights of the new and enhanced CreditVision? New To Credit (NTC) Score:

• Expand access to affordable financial services for unbanked and underserved populations
• Improve campaign efficiencies and reduce acquisition cost
• Increase approval rates within the lenders’ current risk tolerance, providing enhanced financial inclusion opportunity while managing risk and hence increased profit
• On-board NTC customers early in their financial journey

The new score demonstrates superior predictive capabilities compared to the existing score, offering enhanced accuracy and reliability. This improvement is attributed to advanced algorithms and finer segmentation, resulting in more precise forecasts and better decision-making support.

• The new score captures higher number of bads in low score buckets
• In the bottom 30% of the population, the new score captures ~57% of all bads compared to 40% by existing score
• The new score has only 6.8% of all bads in top 20% of the population, whereas the existing score has 11.9% of all bads

How the New NTC Score Works?

• Across-the-board characteristic mathematical tools were used to identify the most predictive data available in consumer credit files and develop a powerful risk model. The score effectively predicts the risk of a New to credit borrower - whether a borrower is likely to default (90+ DPD) on tradeline in the next 12 months.
• The score has a range of 101 - 200, with higher score indicating better (lower) credit risk.

To know more watch this video: https://www.dhirubhai.net/feed/update/urn:li:activity:7222548812588806145

Visit our website to know more about New and Enhanced CreditVision? New To Credit Score:

https://www.transunioncibil.com/product/creditvision-new-to-credit-score

https://www.transunioncibil.com/content/dam/transunion-cibil/corporate/documents/ntc-score-asset-sheet.pdf

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