TransUnion develops risk management solutions in Hong Kong

TransUnion’s Analytic and Decision Services in South Africa extended its global reach with the successful implementation of two risk management solutions for the Hong Kong consumer credit market. The first in class solutions are a Personal Loan Risk model for unsecured loans, and a Generic Payment Behaviour model for credit cards. The uniqueness of the solutions lies in the use of a set of sophisticated payment behaviour variables. Launched in June, several banks have already started the validation process to utilise the scores within their operations.

The Personal Loan Risk model assists companies in calculating the credit risk associated with individuals applying for personal loans. Companies’ risk exposure is mitigated by the model’s ability to predict the likelihood of a 60+ day delinquency on a newly opened unsecured loan.

The Generic Payment Behaviour model predicts credit card payment behaviour allowing creditors to identify over-committed consumers.

“We are confident that the Personal Loan Risk model for unsecured loans and the Generic Payment Behaviour model for credit cards will streamline our customers’ decision making process” said Lawrence Tsong, MD of TransUnion Hong Kong.

“As with any successful deployment, a truly integrated and collaborative approach was used to develop these optimal risk management solutions. The Personal Loan Risk model and Generic Payment Behaviour model will assist companies to more effectively manage their risk” said Thamir Hassan, CEO of TransUnion Analytic and Decision Services, South Africa.