Tag: TransUnion

TransUnion CIBIL, launched CreditVision NTC Score, a credit scoring solution that will enable credit institutions to determine the eligibility of new-to-credit (NTC) customers who have never taken out a loan or a credit card from a bank or financial institution. TransUnion CIBIL, is a knowledge and insights company that maintains credit files of individuals and businesses which aggregates consumer borrowing. Over the last two decades, insights and solutions from TransUnion CIBIL have facilitated opening of 8.10 crore loan accounts of first-time borrowers.

TransUnion reported, credit institutions are often cautious when lending to NTC consumers as there is no credit history to assess their probability of default on the loan. CreditVision NTC incorporates an algorithm that employs an adaptive machine learning system to continuously track the behaviour of related data subjects to detect any significant changes in trends or variables. The score provided by Creditvision NTC ranges from 101 to 200, with higher values suggesting lower credit risk and a lower likelihood of the borrower defaulting. Only financial institutions and banks have access to this scoring model, which is used to measure the credit risk of NTC customers.

Rajesh Kumar, Managing Director and CEO TransUnion CIBIL, at the launch, said, “The majority of India’s population is under 40 years of age, and this group is most likely to approach banks and financial institutions for their first loan or credit card. To tap profitable growth and promote financial inclusion, lenders must investigate the unique potential of using data analytics and solutions to recognise and service the credit needs of this broad customer segment. We reaffirm our commitment to India’s credit industry with the launch of CreditVision NTC Score, which helps foster confidence in the lending ecosystem while enabling access to economic opportunities for deserving new-to-credit consumers.”