Equifax Card Solutions and HNC Software Inc. have announced an agreement to make HNC’s ProfitMax cardholder profitability management system available to card issuers who process through Equifax.
! ProfitMax uses neural networks, expert rules bases and HNC’s cardholder behavior profiling technology to analyze each cardholder account and predict its future profit. Three neural network-based models — Credit Risk, Revenue Potential and Attrition Risk — are used along with historical data to give a well-rounded picture of the expected profitability of each account in an issuer’s portfolio on a transaction-by-transaction basis.
ProfitMax has a modular design that facilitates its use with the FBS Card Management system that ECS clients use to manage their cardholder accounts. Equifax clients will have the option of using ProfitMax with either custom or “consortium” models. A consortium model enables economies of scale by allowing issuers to share a model built on their combined data.
Larry Towe, senior vice president and general manager, Equifax Card Solutions, said, “Equifax Card Solutions is making ProfitMax available because clients have learned to expect innovative decision solutions from us. The power of ProfitMax to predict profitability opens new doors to how our clients can make decisions about their card portfolios.”
“In working with Equifax in our recently announced strategic alliance, I’ve grown to appreciate their serious commitment to the announced goal of being a company whose information, processing and knowledge-based solutions are increasingly instrumental in shaping global commerce,” said Allen Jost, vice president of business development at HNC. “HNC is pleased to be part of the Equifax solution.”
Equifax is a leading provider of information, processing, consulting and software solutions that facilitate and enhance buyer-seller transactions worldwide. The company serves businesses in the banking, finance, retail, credit card, telecommunications and utilities, and health care administration industries.
Equifax is changing the shape of global commerce through growth and innovation, driven by technology and people. It operates globally in 17 countries, with sales in 40 countries. Founded in 1899 in Atlanta, Equifax (NYSE:EFX) today has 10,000 employees around the world. Revenues for the 12 months ended Sept. 30, 1997, exceeded $1.3 billion.
With headquarters in San Diego, HNC Software Inc. (NASDAQ:HNCS) is a world leader in the development and delivery of predictive software solutions in client/server environments. HNC provides innovative predictive software systems in the financial services, retail, insurance information and electronic commerce markets.