Red Deer, Alberta, November 1, 2018: Rifco Inc. (TSXV: RFC) (“Rifco” or the “Company”) the largest publicly-traded alternative auto finance company in Canada, announced today that it has successfully implemented its ‘next generation’ custom scorecard, which incorporates Equifax® data including Payment Dimensions PlusTM for the adjudication of auto financing applications.
The new scorecard incorporates a significantly higher level of complexity and sophistication than Rifco’s previous scorecards. In development of the new scorecard, several thousand borrower and contract attributes were considered and analyzed against a loan sample set of 30,000 auto loan records. Those attributes that were determined to be the most predictive of credit performance outcome were incorporated into a multi-step decisioning engine in order to determine a predictive risk outcome. These risk outcomes will be used to determine Rifco’s credit adjudication decisions.
Rifco leads the industry in utilizing trended attributes from Equifax Canada Co.’s Payment Dimensions PlusTM in an auto lending scorecard. These attributes will allow Rifco to evaluate credit quality using trended credit bureau history information rather than only the traditional static point-in-time information. This value-added data and a multi-faceted approach have been integrated in the new scorecard that is forecasted to produce more predictive results than standard scorecards using only traditional attributes.
The overall objective of the custom scorecard is to allow Rifco to adjudicate credit applications with greater precision to allow for better financial returns and targeted growth.
The utilization of these trended credit attributes and next generation adjudication scorecards is consistent with Rifco’s strategy to leverage data and analytics and will move Rifco to the forefront of the indirect auto lending industry.
“We believe this approach is an important and significant step forward in our strategy to leverage data and analytics to make better credit decisions and will position us as leaders within the industry,” stated Bill Graham, CEO of Rifco. “We feel we can use this scorecard and subsequent data and analytics projects to create a competitive advantage in the industry.”
Rifco has rolled out the new credit scorecard with the objective of an immediate improvement in the quantity, and profitability of new loan originations.
Rifco Inc. is focused on being the best alternative auto finance company through its wholly owned subsidiary Rifco National Auto Finance Corporation. Our mission is to help deserving Canadians own automobiles. Rifco is Canada’s largest publicly traded alternative auto finance company.
Rifco seeks to create sustainable long-term competitive advantages through personalized partnerships with dealers, innovative products, the use of industry-leading data and analytics, and leading collections practices. Rifco’s corporate culture fosters employees that are highly engaged, innovative, and performance driven.
Rifco is committed to creating value for all stakeholders through profitable growth and predictable credit performance, while pursuing its long-term vision of $500M in annual loan Originations.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol “RFC”. There are 21.60 million shares outstanding and 23.46 million (fully diluted) shares.
Equifax is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs 10,400 employees worldwide.
RIFCO Forward-Looking Statements
Certain statements contained in this document constitute forward-looking statements or information made by RIFCO (collectively “forward-looking statements”) within the meaning of the “safe harbour” provisions of applicable securities legislation. Forward-looking statements are typically identified by words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: the timing of the implementation of the model, improvements in loan originations, and the effectiveness of the new credit model.
With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things: the increase in the quantity and quality of loan originations and the effectiveness and accuracy of the new credit model. In addition, many of the forward-looking statements contained in this document are located proximate to assumptions that are specific to those forward-looking statements, and such assumptions should be taken into account when reading such forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.
The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.