TransUnion, Edgar, Dunn - PaymentDynamics 2006 Study

The study will not only provide financial institutions with a complex understanding of their customer's payment needs, but it also will include the predictive and profiling tools necessary to drive profitable growth across their product portfolios.

"Today's American wallet is in constant flux with shifting consumer payment preferences, ever challenging economics for financial institutions and increasing exploration of new technologies, which makes the path to growth and profitability for the payments industry anything but obvious," said Ronald G. Mazursky, director, Edgar, Dunn & Company. "PaymentDynamics 2006 is the first turnkey approach that takes analytics to a new level of actionable insight, providing financial institutions with intelligent tools and models to target the right customer with the right payment product for retention, profitability and growth."

PaymentDynamics 2006 is a continuation of EDC studies on consumer payment preferences, attitudes and behavior conducted in 2000, 2004 and 2005. This marks the first year EDC will partner with a large credit reporting entity, like TransUnion, to incorporate consumer credit information into the findings and market profilings. The 2006 study is the first to combine both in-depth consumer attitudes and perceived behavioral research from more than 10,000 consumers, along with de-personalized credit data, into actionable marketing and customer management insights that will benefit product development, targeting, forecasting and profitability.

"The power of combining consumer behavior and attitudes with TransUnion's credit information will allow us to quickly validate responses or understand and account for the degree of differences between responses and real-world credit behavior," said Tim Claytor, director of Market Intelligence Solutions for TransUnion. "With hundreds of millions of marketing dollars on the line each year in the payments field, understanding and quickly adapting to these differences could not only result in significant cost savings on a particular campaign, but an increase in the number of qualified responses."

Additional services related to the study for financial institutions, card associations, co-brand and affinity partners, merchants and other payment providers include:

• Comprehensive report and ad-hoc queries using Primary Market Data on consumer attitudes and preferences for all payment options - including cash, check, card (both credit and debit), person-to-person, prepaid and electronic - overlaid with current, anonymous credit information;
• Predictive models developed by TransUnion and EDC, which could be used to forecast payment preferences, responsiveness to new product offers, responsiveness to loyalty programs, likelihood of cross-sell and fit of existing product;
• Targeted consumer lists which have been developed by TransUnion and EDC using proprietary predictive models to improve targeting and customer adoption, and;
• Proprietary portfolio consulting by EDC with payment providers to identify and develop profitable growth opportunities and strategies in their market.

For additional information on PaymentDynamics 2006 or to subscribe to the research, contact Ronald G. Mazursky at Edgar, Dunn & Company at Ronald.Mazursky@edgardunn.com or Tim Claytor at TransUnion at tclayto@transunion.com.