Experian TAPSSM - How It Works

Algorithm Development - Annual Consumer Spending

Experian TAPSSM 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.
  • Does it work? Predicted Consumer Spend vs. Actual Consumer Spend
  • Annual Consumer Spending - Predicted vs. Actual 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.
  • HELOC balances are also correlated with TAPS.

    Annual Consumer Spending - HELOC Balances


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How does Experian TAPS work?

Predicted spend vs. actual spend

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