Update: Since this post's original publication, Enigma has retired the Business Closures attribute. We have since introduced the Transactions Stability attribute, which can also be used to identify closed businesses.
What kind of signal does Enigma Business Closures Data provide?
Business Closures data is a leading indicator of business risk or distress. Since the data reveals whether or not a business is operating week to week, this is going to be an early signal that a business may be at risk.
There are three key factors:
Enigma has trained a number of natural language processing (NLP) models to detect indicators of a business’s permanent closure across online and third-party data sources. Each week we analyze a variety of sources to get the most up-to-date and accurate operating status for each business.
Business Closures data has proven to be essential for portfolio risk monitoring, particularly during this period of economic volatility caused by COVID-19. Our customers are using this data to flag any businesses within their portfolios that transition to a “closed” operating status. With this data, financial institutions can react to potentially at-risk businesses more quickly and confidently monitor their overall risk exposure.
Marketing teams have also leveraged Business Closures data to increase campaign ROI by cleaning prospect lists and ensuring they’re only targeting open businesses.