Ability to Pay Index (ATP Index)
Rank Customers Based on their Ability to Pay
ATP Insights
- HHs that are severely delinquent (60+DPD) in their mortgages are 52 times more likely to be in the bottom 10% of IXI’s Ability to Pay Index than in the top 10%. (June 2010)
- 48% of mortgages that are in severe delinquency (60+DPD) are in the bottom 20% of IXI’s Ability to Pay Index, as of June 2010.
Testimonials
- “ATP allows us to improve risk mitigation strategies across all levels of delinquency and across various products, making the use of IXI’s data an enterprise necessity.”
Source: A top financial institution
Case Studies:
- How Consumer Ability to Pay Optimizes Collections Analytics and Operational Efficiency
- By utilizing IXI’s ability to pay measure, a leading collections firm was able to identify over $14 million in collections, representing close to 40% of all outstanding balances from just 21% of delinquent accounts. View the complete case study. Source: Backend analysis for a collections firm
The Ability to Pay (ATP) Index is a modeled scoring system that ranks customers based on their likely ability to pay financial obligations. It enables financial executives to rank customers using a continuous score of 1 to 1,000.
The ATP Index can help credit issuers, mortgage lenders, portfolio valuation firms, buyers of debt, insurance firms, and other institutions prioritize collections efforts, apply risk management resources, enhance credit decisioning, manage delinquent accounts, develop appropriate payment plans, and value debt portfolios. The ATP Index is available for use in both offline and online applications.
Key Differentiators of the Ability to Pay Index
1. Based on Foundation of Anonymous, Direct-Measured Assets
- Leverages factored asset scores derived from IXI’s proprietary financial assets database
- Only IXI’s foundation of anonymous, measured assets can provide the most critical of variables to enable financial executives to determine which customers are likely to have the ability to meet their financial obligations
2. Incorporates Relevant Variables to Offer Industry-Specific Rankings of Ability to Pay
- The index also includes estimated total income (income from wages plus income from assets) and additional industry specific metrics to form a customized industry specific index
- Varies the weight of each input to ensure maximum differentiation and predictive ability to meet unique goals
- Supplements in-house and traditional credit scores to enhance existing processes
3. Offers a Continuous Modeled-Score
- Provides a continuous modeled score ranging from 1 to 1000, with a score of 1000 being the most likely to be able to pay financial obligations
4. Effectively Differentiates Customers
- Helps financial services executives differentiate between two customers that look the same in terms of payment history, credit scores, income, and demographics, but in fact, have considerably different ability to meet future financial obligations
5. Easy to Apply
- Ability to Pay Index scores can be appended to any customer or prospect file to rank households based on their financial ability to pay. It can also be used for online applications
1 The products described herein were neither developed nor intended to be used for the extension of credit to any individual, nor may they be used for purposes of determining an individual’s creditworthiness or for any other purpose contemplated under the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.