TransUnion Teams Up with EXL for CECL Compliance

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Credit reporting agency and risk solutions provider TransUnion is taking steps to help lenders to comply with the new Current Expected Credit Loss (CECL) accounting rule. The company is partnering with operations management and analytics company EXL to facilitate the change.

The partnership will allow TransUnion to create a CECL Credit Loss Calculator to help lenders forecast losses under CECL, since the new guidelines change the methodology used to calculate loan loss allowances. The tool combines EXL’s analytics capabilities with TransUnion’s de-personalized credit data to create a platform that complies with all CECL reporting guidelines, which alter how banks calculate loan loss.

“Many players in the industry are describing CECL as the biggest change to bank accounting standards in years,” said Jason Laky, SVP and consumer lending business leader at TransUnion. “While large banks have more resources at their disposal to adapt, we believe the majority of small to mid-sized lenders will not have the ability or capacity to comply internally and may face challenges as they prepare for the rollout of this new rule.”

Using the Credit Loss Calculator, lenders can leverage their own portfolio data or automatically import data reported by TransUnion. The tool allows lenders to adjust for macroeconomic scenarios, apply overlays, and adjust the models for different credit products, including mortgages, auto loans, and revolving credit.

Founded in 1968, TransUnion is headquartered in Chicago, Illinois with office locations in Hong Kong, Mumbai, Toronto, Johannesburg, Colombia, and Brazil. At FinovateFall 2016, TransUnion showcased Prama, a suite of analytics tools that helps lenders gain market intelligence and acts on insights to drive growth and build a risk policy. Last month, the company acquired device intelligence firm iovation. TransUnion is a public company with a market capitalization of $13.4 billion, trading on the NYSE under the ticker “TRU.”

Finovate Alumni News

On Finovate.com

  • Wonga Raises $13 Million in New Funding.
  • TransUnion Teams Up with EXL for CECL Compliance.
  • RightCapital Adds Student Loan Functionality to its Platform.

Around the web

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

TransUnion Acquires iovation

Just two months after announcing plans to acquire CallCredit for $1.4 billion, credit reporting agency and risk information provider TransUnion has finalized its purchase of device intelligence company iovation.

TransUnion announced its plans to acquire iovation in May and received authorization from the FTC last month. The terms of the deal were not disclosed.

Today’s acquisition will expand TransUnion’s global reach and customer base, and is expected to give the company a boost in the fraud and identity management space. TransUnion’s current fraud offerings include credit protection, identity management, identity verification and authentication, fraud detection and prevention, and data breach services. The company will leverage iovation’s device reputation database, which offers insight into almost 5 billion devices from more than 35,000 brands across 50+ countries, for its IDVision suite of fraud and identity solutions.

“The completion of this acquisition allows us to begin efforts to seamlessly integrate iovation’s device identity and consumer authentication capabilities into IDVision, TransUnion’s suite of innovative fraud and identity solutions,” said Jim Peck, TransUnion’s president and chief executive officer. “The combination of our solutions will create an unmatched network of offline and online identities that will benefit both our business customers, and ultimately, consumers who are transacting with them.”

TransUnion was founded in 1968 and has corporate headquarters in Chicago, Illinois. The company has office locations in Hong Kong, Mumbai, Toronto, Johannesburg, Colombia, and Brazil. At FinovateFall 2016, TransUnion showcased Prama, a suite of analytics tools that help lenders gain market intelligence and act on insights to drive growth and build a risk policy. Last month, TransUnion teamed with MIB to allow MIB’s 400 U.S. life insurance member companies to receive customer identity verification services through a new integration with TransUnion’s Identity Verification solution.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alums Take Top Honors at FinTech Breakthrough Awards

Dedicated to recognizing “the top companies and products in the financial services and technology industry today,” FinTech Breakthrough has announced its FinTech Breakthrough Award Winners for 2018. This marks the second year the independent organization has sponsored the fintech awards event, recognizing fintech startups and veterans from a wide variety of categories including payments, lending, investing, and regtech.

“The FinTech Breakthrough Awards serve as a testament to the passion, skill and vision of individuals and teams that are truly setting the standard for innovation in the global FinTech industry,” Managing Director for FinTech Breakthrough James Johnson said in 2017 during the Awards’ inaugural year. “We are thrilled to recognize all of the FinTech Breakthrough Award winners for their well-deserved industry recognition as they drive the global FinTech market forward.”

This year featured 20 Finovate alums earning top honors from FinTech Breakthrough. The names and Finovate demo dates for each winning alum – as well as the category they won – are featured below. For a complete list of 2018 FinTech Breakthrough Award Winners, visit the company’s awards announcement page.

Leadership

Consumer Lending

  • Innovation Award for Consumer Lending – Text for Credit by Experian (FF17)

Business Lending

Wealth Management

Payments

Investments

Consumer Banking

Financial Research and Data

Fraud Prevention and Transaction Security

This marks the second time both eMoney Advisor and ThreatMetrix have been honored by the FinTech Breakthrough Awards. Among last year’s winners were a significant number of Finovate alums including: Sindeo, BizFi, DriveWealth, Quovo, Jumio, Trulioo, Qumram, and Xero.

TransUnion to Acquire Callcredit for $1.4 Billion

Credit reporting agency and risk information provider TransUnion announced this week it agreed to acquire Callcredit, the second-largest consumer credit bureau in the U.K. The deal is expected to close in the second or third quarter of this year for $1 billion.

With today’s acquisition, TransUnion aims to boost its international presence. The U.S.-based company already does business in 33 countries and offers consumer products in India, Hong Kong, South Africa, and Canada. TransUnion also markets regional-specific products, as well as a global suite of solutions, including:

  • CreditVision, which leverages credit performance trends, behaviors, and analytics to help banks gain a better understanding of consumers and make more informed lending decisions.
  • IDVision, a suite of solutions that offers a more accurate picture of consumer identities to help mitigate and manage risk during the consumer verification and authentication process.
  • DecisionEdge, a suite of decisioning solutions that help businesses turn data into actionable decisions.
  • Prama, which TransUnion showcased at FinovateFall 2016, is a suite of analytics tools that help lenders gain market intelligence and act on insights to drive growth and build a risk policy.

Jim Peck, TransUnion’s president and CEO, noted that the companies have “strong synergies” across their business models and solutions and that they both “share a commitment to using information to benefit consumers and global economies.” He added, “Callcredit is an outstanding acquisition for TransUnion, and together, we’ll be a powerful force to deliver value to shareholders, customers, and consumers across all the markets we serve.”

David Neenan, president of TransUnion’s International business commented on the company’s international strategy, highlighting Callcredit’s role as a major player in the world’s second-largest credit market. “And, with the growing trend of multi-bureau usage in the U.K., we believe this is the right time to introduce TransUnion into the market,” Neenan said.

Callcredit was founded in 2000 and was acquired by private equity firm GTCR in 2014. The company has 1,200 employees and offices across the U.K. as well as in Lithuania, Japan, Dubai, and Denmark.

TransUnion was founded in 1968 and has corporate headquarters in Chicago, Illinois. The company has regional headquarters in Hong Kong, Mumbai, Toronto, Johannesburg, Colombia, and Brazil. Last December, Fiserv leveraged TransUnion’s CreditVision to create better risk models for its Automotive Loan Origination System.

Finovate Alumni News

On Finovate.com

  • TransUnion to Acquire Callcredit for $1.4 Billion.
  • Mortgagetech Company Mr. Cooper Appoints Tony Ebers as COO. Come check out Mr. Cooper’s live demo at FinovateSpring next month.

Around the web

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  • La Voz de Galicia profiles Spanish mobile banking startup, Fintonic (in Spanish).
  • Ovum names OutSystems a Market Leader in for Enterprise Mobile Application Development platforms.
  • TransUnion to acquire Callcredit in deal valued at £1 billion ($1.4 billion).
  • Ovum names Kony a leader in mobile app development platforms.
  • Cardlytics Chief Legal Officer named Atlanta Business Chronicle’s Corporate Counsel of the Year.
  • Uniken CEO recognized as a top 100 Most Innovative Business Leader.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.

Fiserv Teams with TransUnion to Enhance Automotive Loan Origination System

Financial services company Fiserv and credit reporting agency and risk information provider TransUnion have joined forces today. Under the agreement, Fiserv will integrate TransUnion’s CreditVision Link to increase precision of scoring and risk modeling in its Automotive Loan Origination System.

Specifically, Fiserv will leverage data from TransUnion to identify high-risk and high-potential borrowers, including thin-file applicants, based on an evaluation of their credit application. This addition helps serve the underbanked population, raising Fiserv’s reach to potential underserved borrowers to 60 million. The additional data has also boosted the “super prime” customer base by 23 million.

Shaimaa Elk, Chief Information Officer, Lending Solutions for Fiserv said, “The partnership between Fiserv and TransUnion enables lenders to provide borrower-focused customer service and better optimize profitability, cost reductions, and efficiencies.”

CreditVision Link uses alternative data sources that include 30 months of data on factors such as address stability, checking account history, microloans/ alternative lending, and property ownership. TransUnion made a move to bolster the service last month when it acquired FactorTrust, a company specializing in alternative credit data, analytics, and risk-scoring. The terms of the deal were not disclosed.

Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit, said that understanding clients is critical not only for decision making, but also for building customer relationships and loyalty. Chaouki added, “Our integration of CreditVision Link trended and alternative data sources into Automotive Loan Origination System enables lenders to score approximately 95 percent of the U.S. adult population.”

Founded in 1984, Fiserv most recently presented at FinDEVr New York 2017, where the company’s Sr. Product Manager, Jon Zimmermann, and VP of Electronic Payments, Paul Diegelman, addressed the audience in a presentation titled Payments Processing: Bank-Grade Standards, Now Available to Anyone. Earlier this year, Fiserv agreed to acquire Monitise for $89 million. The deal was finalized in September.

At FinovateFall 2016, TransUnion debuted Prama Insights, a suite of solutions that leverage data to offer lenders market intelligence. Prior to TransUnion’s acquisition of FactorTrust last month, the company acquired eBureau to enhance its versatile data and analytics capabilities. TransUnion is a publicly-traded company (NYSE: TRU).

Finovate Alumni News

On Finovate.com

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  • Prosper to launch seventh generation of credit model, switches from Experian to TransUnion.
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This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.