TransUnion and Edgar, Dunn & Company Launch The Revolver Model
Chicago - February 12, 2008
Contacts:
Clifton M. O’Neal Dianne Douglas
TrausUnion Douglas Communications
coneal@transunion.com dianne@douglaspr.com
(312) 985-2540 (415) 584-4906
TransUnion and Edgar, Dunn & Company Launch The Revolver Model to Help Financial Institutions More Effectively Market Their Credit Card Products
Chicago, Feb. 12, 2008 – TransUnion and Edgar, Dunn & Company today launched the Revolver Model, the second scoring model to identify predictive credit behavior characteristics using survey-based data from the PaymentDynamicssm 2007 Preferred Payments Study. The Revolver Model helps financial institutions determine how consumers prefer to manage their credit card balances and enables banks to develop custom marketing offers accordingly.
“The unique nature of the PaymentDynamics product suite is that it is based directly on consumer preference, which can provide unique insights versus traditional usage models that rely on past behavior with a single issuer,” said Mary Ann Blotzer, senior consultant for TransUnion. “Financial institutions can effectively use the Revolver Model in active credit card portfolio management and in cross selling additional products to specific consumer segments that usage-based models might miss.”
By understanding consumer balances management preferences and credit card use, marketing managers at financial institutions can improve product marketing efforts by segmenting prospects and customers and providing relevant offers and messages to each group. For example, high revolvers might be interested in services such as balance transfers, or low APR offers, while non revolvers are more likely to be interested in special rewards or features.
“The reality for financial institutions is that consumers have an increasing number of payment options available to them and understanding their preferences is key in creating product offers, promotions and messages that resonate with them”, said Beth Costa, director at Edgar, Dunn & Company. “The Revolver Model can help financial institutions address these issues by providing audience segmentation and communication strategies that can improve customer acquisition, cross-sell and retention efforts.”
About the Payment Preference Model
The Revolver Model joins the Payment Preference Model as part of the PaymentDynamics Suite which was introduced in July 2007. The suite is designed to allow retail banks, financial services companies, credit card issuers, and card associations to maximize and prioritize direct product offer strategies across the full payment spectrum of cash, check, debit cards and credit cards.
About the PaymentDynamicsSM 2007 Preferred Payments Study
The PaymentDynamics 2007 Preferred Payments Study jointly conducted by TransUnion and Edgar, Dunn & Company, is the first such study to combine consumer credit risk characteristics with consumers' choices of all payment options. This study helps payment providers better understand how consumers prefer to pay for goods and services, and how consumers' payment behaviors and preferences shift based on their credit risk profiles.
About Edgar, Dunn & Company
Edgar, Dunn & Company (EDC) is an independent global financial services and payments consultancy. Founded in 1978, the firm is widely regarded as trusted advisors in the payments industry providing a full range of strategy consulting services, expertise and market insight through in-depth industry and consumer benchmarking. Global capabilities include strategy, risk management, marketing, profitability improvement, operations, and new products and technologies. EDC's offices are located in San Francisco, Atlanta, London, Frankfurt and Sydney, serving clients in over 30 countries on six continents. More information can be found at http://www.edgardunn.com
About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs more than 4,000 employees in more than 30 countries on six continents. www.transunion.com/business
Graphics and/or photographs to accompany this release can be obtained by members of the media by contacting Cliff O'Neal (coneal@transunion.com) at 312-985-2540 or Dave Blumberg (dblumbe@transunion.com) at 312-985-3059.
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