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Category Credit
SUB CATEGORIES Credit Bureaus  |  Credit Insurance |  General | 

TransUnion Launches Debt Index Solution

24 February 2009 TransUnion

TransUnion has launched Debt Index for the South African market. An innovative tool, Debt Index segments consumers in terms of risk around the consumer capacity to pay their monthly commitments. The Debt Index takes an individual’s past credit behaviour into account and identifies the ratio of monthly instalments to monthly gross income as well as the slope of indebtedness retrospectively for the past twelve months. This forms the basis for estimating the future behaviour and successfully highlights an individual’s risk in taking on additional credit.

“The ever-changing economy is dramatically changing the way consumers manage their credit and the way credit grantors view risk in their portfolios. There is a heightened need to grant and extend credit to consumers, in a very different manner than to that of the past. TransUnion’s Debt Index is an essential tool in that regard. It allows credit grantors to consider past behavioural issues resulting in non-payment and to take into account the future financial state of the average consumer,” said John Fourie (pictured), Executive Director Solutions and Decisioning.

The Debt Index utilises bureau data and creates sophisticated risk intelligence. This effective tool enables companies to manage their risk throughout the customer life cycle including acquisition and in particular, in the account management and collections stages.

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