Non-Prime Issuing Opportunities: Setting Multiple Bars for Diverse Segments

Table of Contents

TABLE OF FIGURES

Introduction

I. Defining The Non-Prime Opportunity

• Definitive Scores = Unclear Boundaries
• Just Part of a Long Term Trend

II. The Best/Worst of Times for Subprime

• Always Under the Microscope
• Which Way Is The Wind Blowing?
• Picking The Best Subprime Prospects

III. Thin File Comes Of Age

• FICO Expansion Score
• LexisNexis RiskView
• Link2Credit

IV. No-File Prospects: The Tough Get Tougher

• A Diversity of Circumstances
• A Payday In Payday Lending?
• Tapping The Power of Payroll Deduction

V. The Future Frontier

TABLE OF FIGURES

• Figure 1: Definitive Scores = Fuzzy Boundaries
• Figure 2: Non-Prime Segments
• Figure 3: Subprime Opportunities Were Being Tapped 15 Years Ago
• Figure 4 Even Before Thin-File Technologies, Issuers Were Moving Down-Market
• Figure 5: Issuers Supported New Cardholders' Lower Wealth and Income
• Figure 6: Overall Portfolio Management Trends Have Been Positive
• Figure 7: ABS Subprime Portfolio Trends Have Been Positive Through Mid-Year
• Figure 8: Improving FICO Expansion Score Scorability Results
• Figure 9: RiskView Data Sources
• Figure 10: Link2Credit Provides Thin-File/ No-File Prospect File Compilation and Marketing Applications
• Figure 11: A Qualitative Segmentation of Today' s No-File Consumers