How a lender safely increased credit lines with Enigma’s data
Better coverage of the client’s SMB portfolio
Richer data about business growth and revenues
Leading indicators of business decline and distress
25% Increase in risk model accuracy
70,000+ New high-value businesses identified
$30M Expected incremental revenue
Safely increase credit lines
A top 10 SMB lender wanted to grow revenue without increasing loss ratios. Safely increasing credit lines was a core part of this strategy. Throughout 2020, the risk team saw increased volatility in their small business portfolio. Without clear visibility into their portfolio’s health, they were missing opportunities and taking on unnecessary risk.
The risk team assigns a risk score to every business in their portfolio and uses it to segment customers into three buckets: decrease, maintain, or increase credit lines. Accuracy is vital with the risk score, which gets refreshed each month. The team’s models previously relied upon internal data, as well as data from bureaus and the Small Business Financial Exchange. The team sought more timely data with signals about a business’s financial health to improve their models’ accuracy and overall customer management.
Add timely data to improve customer segmentation
The team introduced Enigma’s Merchant Transaction data into their models and backtested against historical data. They found Enigma’s data increased their models’ accuracy by around 25% for about one third of their portfolio.
In particular, Enigma’s data about presence of transactions, transaction stability, and three-month growth rates led to the strongest increase in predictive power of their model. More accurate models meant the team could improve customer segmentation, both reducing risk and uncovering new opportunities.
Aligned to strategy, credit line increases made up a large share of the team’s new revenue generation. With these risk model data improvements, the team identified around 5% of their portfolio that was eligible for incremental credit line increases. During the first year of implementation, the team expects these adjustments will generate $30,000,000 in incremental revenue.
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Add-on
Description
Price
Pro
Max
Enterprise
Console Access
Access to the Enigma Console for search and exploration
Aggregated card transaction data including revenue estimates and spending patterns
Included
✓
✓
API Access
Programmatic access to Enigma APIs
Complete historical card transaction data for trend analysis
Included
✓
✓
MCP Integration
Model Context Protocol integration for AI workflows
Address validation, geocoding, and deliverability scoring
$200/mo
—
1 Seat
Additional MCP Seats
Extra seats for MCP users on your team
Business contact details including phone and email
$200/seat/mo
—
Add-on
SSO Integration
Single Sign-On for enterprise authentication
Real-time registration and good standing status
$5,000/yr
—
—
Workspace Management
Team workspace tools and permissions management
Historical government filings and corporate records
$10,000/yr
—
—
Contact Data
Professional contact information
Business contact details including phone and email
$0.10/contact
—
—
Contact Data
Professional contact information
Business contact details including phone and email
$0.10/contact
—
—
Registration Status
Current filing status per state
Real-time registration and good standing status
$1.00
—
✓
Gov Archive
Government filing archives
Historical government filings and corporate records
$2.00
✓
✓
TIN Verification
Verify EIN against IRS records
Validate employer identification numbers
$1.00
—
✓
SSN Verification
Verify SSN for sole proprietors
Social security number validation for sole props
$1.00
—
✓
Watchlist Screening
OFAC and sanctions screening
Screen against OFAC, sanctions, and watchlists
$1.00
—
✓
$0.15 per match
Core identity and contact information to connect with businesses
$0.50 per match
Deeper firmographics and people data for comprehensive outreach
$0.90 per match
Enhanced + operating risk signals for deep diligence
$1.00 per match
Confirm business identity and validate basic legitimacy
$2.00 per match
Full regulatory verification and compliance checking
Safely increase credit lines
A top 10 SMB lender wanted to grow revenue without increasing loss ratios. Safely increasing credit lines was a core part of this strategy. Throughout 2020, the risk team saw increased volatility in their small business portfolio. Without clear visibility into their portfolio’s health, they were missing opportunities and taking on unnecessary risk.
The risk team assigns a risk score to every business in their portfolio and uses it to segment customers into three buckets: decrease, maintain, or increase credit lines. Accuracy is vital with the risk score, which gets refreshed each month. The team’s models previously relied upon internal data, as well as data from bureaus and the Small Business Financial Exchange. The team sought more timely data with signals about a business’s financial health to improve their models’ accuracy and overall customer management.
Add timely data to improve customer segmentation
The team introduced Enigma’s Merchant Transaction data into their models and backtested against historical data. They found Enigma’s data increased their models’ accuracy by around 25% for about one third of their portfolio.
In particular, Enigma’s data about presence of transactions, transaction stability, and three-month growth rates led to the strongest increase in predictive power of their model. More accurate models meant the team could improve customer segmentation, both reducing risk and uncovering new opportunities.
Aligned to strategy, credit line increases made up a large share of the team’s new revenue generation. With these risk model data improvements, the team identified around 5% of their portfolio that was eligible for incremental credit line increases. During the first year of implementation, the team expects these adjustments will generate $30,000,000 in incremental revenue.
