OneScore Alternative Data Credit Risk Assessment

This document is a technical report that outlines the testing of OneScore, a multi-data credit score that incorporates alternative data, to enhance default risk segmentation for a financial institution's origination models. The objective was to determine if this alternative risk score could outperform traditional credit scores in predicting delinquency rates. The analysis revealed that OneScore could achieve an over 80% lift in predicting delinquencies, particularly benefiting near-prime and deep subprime segments. The report details how OneScore utilizes alternative consumer credit data, including payment histories from various service providers, and is powered by Equifax AmplifyAI™ technology. The results indicated significant improvements in the ability to segment consumers based on their likelihood of delinquency, with notable increases in performance metrics across different consumer categories. The findings suggest that employing OneScore could enable the financial institution to approve more consumers for credit and identify new opportunities within its applicant pool.