Population Dynamics of the Underbanked
A Research Report

Presenters:

Steve Seoane, Vice President Analytics, LexisNexis Risk & Information Analytics
Jim Christiansen, Chief Scoring Officer, LexisNexis Risk & Information Analytics

LexisNexis has completed a two-year study of the population dynamics of the underbanked universe, comparing the differences between credit bureau history and other sources of public record and publicly recorded information. Many in the underbanked universe are first publicly reported by agencies other than financial institutions, and the content of those reports is relevant for assessing future credit worthiness.

This session will provide information on the number of people with limited or no credit history, and the depth and breadth of non-credit information they have on record at LexisNexis. It will track the population dynamics over a two-year period, describing which segments become credit active, what is the typical first tradeline, and how the populations perform on their first credit accounts. Different sub-populations are identified based on asset registrations, professional and other licensure, criminal convictions, address stability and other non-credit records to show the differences in subsequent credit performance.