Equifax Increases Power of Telco Risk Assessment Tool

Atlanta, September 16, 1997-- Recognizing the rapidly changing telecommunications marketplace and anticipating the effects of further deregulation, Equifax today introduced TELCO '98, a new and improved risk assessment model to help telcos build market share while reducing risk.

TELCO '98 delivers numeric scores that rank-order risk more precisely than ever before, allowing the companies to require deposits only from high-risk customers (when applicable) and determine the most appropriate treatment strategy. TELCO '98 can be used for cross-selling additional services to low-risk customers. Predefined action messages can be returned through Equifax's MultiVision platform at the point of sale.

Val Perry, senior vice president and general manager, Equifax Telecommunications and Utilities Solutions, said, "Consumer behavior regarding telecommunications services has changed dramatically over the past few years. Equifax has analyzed actual local and long distance telecommunications nationwide performance data to create the most powerful risk model available to the industry."

TELCO '98 keeps on serving the customer throughout the entire credit life cycle, from account acquisition through account management to recovery and collections, if necessary.

• Account Acquisition. The model makes a credit risk evaluation on each new service applicant and can determine the need for and amount of a deposit (if applicable). It delivers a numeric score that provides an intuitive probability of payment, an assessment of credit worthiness and a forecast of payment performance. Customers are classified by score ranges and through several predefined action messages displayed on a screen, can be offered additional services while signing up for basic service. For example, the service provider may offer the customer long-distance or Internet service at the point of sale.
• Account Management. Accounts can periodically be "rescored" for increased or decreased likelihood of delinquency, resulting in a modified deposit requirement, refund, or a different treatment strategy. Rescoring also may increase retention of low-risk customers through aggressive repricing.
• Collections Management. TELCO '98 can flag the "most collectable" accounts and help providers prioritize their collection efforts. Delinquent accounts are identified sooner, enabling fast action to reduce losses. Risk is reduced since the model rank-orders late stage revenue recovery efforts, whether managed in-house or by a collection agency.

For overall account management, TELCO '98's precise scoring segments applicants more accurately than other models, allowing for specific strategies for targeted groups when setting deposits, monitoring accounts or cross selling.

TELCO '98 is available now. For more information, please contact Tracy Yarmolich, senior product development manager at 404-885-8176.

Equifax is a world leader in providing financial information and processing solutions, with global operations in consumer and commercial credit information services, payment services, software, modeling, analytics and consulting and direct-to-consumer services. The company serves many industries including banking, finance, retail, credit card, telecommunications and utilities and health care. Equifax was founded in 1899 in Atlanta and today has 10,000 employees around the world. It operates globally in 17 countries, with sales in 40 countries. Equifax (NYSE: EFX) revenues for the 12 months ended June 30, 1997, were just under $1.3 billion.