Annual consumer spending

Estimate a consumers total annual credit card and charge card spend with Experian TAPS

Use consumer spending data

Experian TAPS^SM - How It Works

Algorithm Development - Annual Consumer Spending

Experian TAPS^SM is the first commercially available algorithm that uses credit data to calculate annual consumer spending.

Algorithm calculates the last 12 months of total card spend
Validated on the accounts of multiple card issuers and network trade lines
TAPS is complementary to Vantage Score, credit line strategies and utilization and thus can rank within sub-segments.

Development

Does it work? Predicted Consumer Spend vs. Actual Consumer Spend

An independent validation sample was scored and compared with actual consumer spend over 10 vintages of 12 months: R²= .78
A similar validation on a different issuer was also conducted: R²= .87
R²or “Coefficient of Determination” is a measure of the proportion of variability that two variables share, or in other words how much one can be explained by the other.
The Coefficient of Determination above of .87 means that approximately 87% of the variability of each variable is shared with the other.

Annual Consumer Spending - Predicted vs. Actual Spend

Accurately captures annual consumer spend

The TAPS algorithm discriminates consumer spend, accurately and independent of balances, with R²of 0.75-0.85

Annual Consumer Spending - Algorithm Performance

Validation

Complements income models

TAPS varies significantly within Income Insight bins

Annual Consumer Spending - Income Insight Bins

Will allow targeting across multiple risk bands

VantageScore is not correlated with consumer spend. TAPS is a necessary complement to a risk score.

Annual Consumer Spending - Average VantageScore

Use with bank products

Deposit balances are significantly correlated with TAPS.

Annual Consumer Spending - Deposit Balances

HELOC

HELOC balances are also correlated with TAPS.

Annual Consumer Spending - HELOC Balances

Get More Information

Call us or complete the form below to learn more.

First Name *

Last Name *

Company *

Phone *

Email *

Comments

Validated by Experian Data Quality

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Product Sheet Download

Download the Product Sheet PDF

How does Experian TAPS work?

Predicted spend vs. actual spend

Download a presentation with additional features and details about this industry-unique algorithm.

Download the presentation

White Paper Download

The Key to Achieving Profitable Growth

Learn how changes in the economy have impacted consumer credit behavior.

Download the white paper