Zoot and ID Analytics Partnership Strengthens Demand Deposit Account Opening

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Combined real-time capabilities reduce losses, operational expenses

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Zoot’s partnership with ID Analytics provides real-time decisioning and seamless data integration to achieve significant decreases in credit and fraud losses.

Zoot, a leading provider of advanced instant credit decisioning and loan origination solutions, today announced effective demand deposit account (DDA) opening solutions for today’s lending environment at the CBA LIVE 2012 Banking on the Future conference. Zoot’s zInitiate℠ solution integrates ID Analytics, Inc.’s credit and identity risk score to improve the accuracy of banks’ decisions at account opening. The companies’ real-time capabilities support more profitable DDA opening by reducing losses and improving offer acceptance.

In the past 12 months, as regulatory bills such as the Durbin Amendment began to take effect, the profitability model for DDA banking changed dramatically. With key revenue streams eliminated or heavily constrained, banks are being challenged to mitigate the impact of these new regulations by reducing both operational expenses and overall losses. Today, gauging risk at DDA opening requires more accurate methods for optimizing products while avoiding fraud and credit losses.

“Employing multiple solutions to reduce losses from poor performing accounts and fraud isn’t a new concept in the DDA space—banks have employed both credit bureau data and closed-for-cause files for some time,” said Steve Seoane, vice president, enterprise solutions for ID Analytics, Inc. “Our solution, ID Score®-Action, takes advantage of a wider set of cross-industry data and delivers more accurate insight into the risk of a DDA applicant. For a large bank, ID Score-Action identified ten percent of low-risk prospects that rejected a basic offer, but would have accepted a more appropriate premium offer.”

The DDA is typically the first relationship consumers establish with their bank. By helping banks optimize their ability to extend the right offer to potential new customers while minimizing the number of poor performing new accounts, Zoot and ID Analytics support healthy growth, opportunity for cross-selling and bank profitability.

Zoot’s zInitiate℠ account opening solution utilizes an open marketplace of unique, predictive data providers, including ID Analytics, to optimize the evaluation of all consumers during DDA opening. The solution’s functionality includes a rules engine that facilitates instant decisioning, cross-sell and the ability for business users to make modifications to logic quickly as the market changes. Additionally, leveraging ID Analytics’ industry-leading fraud and alternative credit solutions, delivers the maximum lift needed to soften the blow of regulation through significant loss reduction.

“In 2011 Zoot launched our zInitiate℠ account opening solution to support financial institutions ability to improve profitability in the midst of regulatory reform that restricted revenues on debit card and overdraft fees,” said Dennis Dixon, president of Zoot Enterprises. “Zoot’s partnership with ID Analytics provides real-time decisioning and seamless data integration to achieve significant decreases in credit and fraud losses. The ability to utilize non-traditional DDA data sources optimizes the credit evaluation of consumers resulting in higher approval rates with less risk.”

Zoot executives will be available to discuss DDA opening solutions at booth number two at the CBA Live Conference, March 19-21, 2012 at the Hilton Austin in Austin, Texas.

About Zoot
Bozeman, Mont.-based Zoot Enterprises, Inc. provides comprehensive credit decisioning, loan origination and credit risk management solutions to enable clients’ unique business objectives, leading to long-term relationships with top U.S. and international financial institutions. Zoot’s rapid, high-volume processing environment has the capacity to process billions of transactions per year. Visit http://www.zootweb.com or call 406.556.7555 for more information. Zoot thought leaders are now featured on zootweb.com/blog.

About ID Analytics, Inc.
ID Analytics is transforming consumer risk management with patented analytics, proven expertise, and real-time insight into consumer behavior. By combining proprietary data from the ID Network®— one of the nation's largest networks of cross-industry behavioral data—with advanced science, ID Analytics provides unprecedented visibility into identity risk and creditworthiness. Every day, the largest U.S. companies and critical government agencies rely on ID Analytics to make risk-based decisions that enhance revenue, reduce fraud, drive cost savings, and protect consumers. Please visit us on the web at http://www.idanalytics.com.

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