This new redevelopment is built using the FICO 8 blueprint. It is designed to help lenders mitigate losses on existing accounts while improving the quality of credit assessments to promote responsible lending for new account applications in the spirit of South Africa’s National Credit Act.
In developing the score, FICO leveraged enhancements in TransUnion’s credit report data for the country, including additional installment, micro-finance and leasing reporting, to provide a detailed and thorough picture of consumer credit usage and risk.
The score is intended to improve lenders’ decisions on applicants with little or no prior credit history.
Brian Cooper, senior director of scores for FICO, said: “Our new score at TransUnion leverages the enhancements we have made to FICO scores internationally through the use of our FICO 8 blueprint, tailoring them to the unique characteristics of individual markets.
“It analyzes the full breadth and depth of TransUnion’s credit data on the market, resulting in the most powerful models yet for South Africa on both existing customers and new credit applicants.”
Robert Duque-Ribeiro, vice president and general manager of scores for FICO, said: “We are committed to developing the most predictive scores globally, taking into consideration local needs and data to deliver solutions that address each country’s business priorities.
“At a time where the South African economy is showing signs of recovery, FICO’s 15 year experience developing scores in this country, our strong local partnership with TransUnion, and the use of the FICO 8 blueprint make the new FICO score an excellent choice for helping South African lenders and consumers.”
