TransUnion UK launches Trended Affordability data

Integrated into TransUnion’s Affordability Report, the new feature enables clients to predict with greater accuracy the future affordability of consumers, enabling more accurate assessments and improved credit risk performance.

Trended Affordability builds on the lessons of TransUnion’s TrueVision product, which provides a trended view of traditional credit risk attributes, incorporating new algorithms, attributes, and a new score that can help clients understand the unique pattern of each customer’s affordability position over time.

Improving lending decisions with data

By providing additional insights based on a customer’s affordability position over the last 12 months, Trended Affordability can help lenders to make more informed predictions on consumers’ future financial behaviour and stability. This can improve credit risk assessments and enhance affordability evaluations, helping lenders make responsible lending decisions with fair outcomes for both the business and consumer.

The enhanced Affordability Report combines trended and traditional credit and affordability data to create a new set of trended algorithms and a Trended Affordability Score. By predicting a consumer’s future affordability position, the feature typically delivers an uplift in applications accepted whilst maintaining the same bad rate.

Officials from TransUnion said Trended Affordability is one of the biggest developments in affordability reporting in recent years, setting a new standard for financial decision-making and reinforcing their continued investment in innovation. As one of the first to provide trended data on affordability that delivers a more robust view of a consumer’s affordability position, they’re enabling their clients to stay ahead in the market by making more accurate assessments of affordability, whilst mitigating risk.