evaluating business owner wealth in risk models
TRANSCRIPT
1 © Experian [Public] • 6/14/17 • Wealth Insight Services
2 © Experian [Public] • 6/14/17 • Wealth Insight Services
Hot topic: Why wealth matters?
3 © Experian [Public] • 6/14/17 • Wealth Insight Services
What is Commercial Loan Stacking ?
4 © Experian [Public] • 6/14/17 • Wealth Insight Services
Results of risk modeling
16.3
23.3
0.0
5.0
10.0
15.0
20.0
25.0
KS
Demographic only – thin file population
IPV2 Custom IPV2 and WOS
43% lift
5 © Experian [Public] • 6/14/17 • Wealth Insight Services
Results of risk modeling
0%
2%
4%
6%
8%
10%
12%
1 2 3 4 5 6 7 8 9 10
Inte
rva
l b
ad
ra
tes
Demographic only – thin file population
IPV2 Custom IPV2 and WOS
6 © Experian [Public] • 6/14/17 • Wealth Insight Services
Introduce trended solutions
0
10,000
20,000
30,000
40,000
50,000
60,000
0
5
10
15
20
25
30
35
Ave
rag
e p
lastic
sp
en
dPe
rce
nt o
f p
op
ula
tio
n
Estimated wealth
Gender based ownership
Women Owned Male Owned Women Owned Avg Plastic Spend Male Avg Plastic Spend
7 © Experian [Public] • 6/14/17 • Wealth Insight Services
Modeling results for marketing
10.74%10.66%
9.84% 9.77%
9.48%
8.5
9.0
9.5
10.0
10.5
11.0
$0 - $15,000 $15,001 - $40,000 $40,001 - $100,000 $100,001 - $150,000 $150,0001 - $90,000,000
In th
e m
ark
et ra
te %
Estimated wealth
Rank ordering by wealth
8 © Experian [Public] • 6/14/17 • Wealth Insight Services
Which industries to target?
20
25
30
35
40
45
50
55
60
65
70
0
2
4
6
8
10
12
14
16
Finance,Insurance and
Real Estate
PublicAdministration
Retail Trade Services Construction ManufacturingTrans, Comm,Electric, Gas,
Sanitary
Agriculture,Forestry and
Fishing
WholesaleTrade
Mining
In the market for credit and risk
In th
e m
ark
et ra
te p
erc
en
tage
Ave
rag
e IP
V2
9 © Experian [Public] • 6/14/17 • Wealth Insight Services
Which industries to target?
0%
2%
4%
6%
8%
10%
12%
0
2
4
6
8
10
12
14
16
Finance,Insurance and
Real Estate
PublicAdministration
Retail Trade Services Construction ManufacturingTrans, Comm,Electric, Gas,
Sanitary
Agriculture,Forestry and
Fishing
WholesaleTrade
Mining
In th
e m
ark
et ra
te p
erc
en
tage
Ba
d ra
te
10 © Experian [Public] • 6/14/17 • Wealth Insight Services
Where to target?
0
5
10
15
20
Pe
rce
nt o
f p
op
ula
tio
n
Estimated wealth
Top “three in the market” SIC
Agriculture, Forestry and Fishing Wholesale Trade Mining
11 © Experian [Public] • 6/14/17 • Wealth Insight Services
Why to target here?
37.134.5
32.930.3
28.1
44
46
48
50
52
54
56
58
0
5
10
15
20
25
30
35
40
45
50
0-$225,000 $225,001-$350,000 $350,001-$600,000 $600,001-$3,000,000 $3,000,001-$90,000,000
Ave
rag
3 IP
V2
sco
reM
icro
-bu
sin
ess r
ate
(%
1-2
em
plo
ye
es)
Estimated wealth
Micro-businesses and wealth
©2017 Experian Information Solutions, Inc. All rights reserved. Experian and the Experian marks used herein are trademarks
or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the
trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any
form or manner without the prior written permission of Experian.
Experian [Public. Confidential. Internal. Restricted. – please choose the appropriate category]
www.experian.com/b2b