3 Approaches to Using Administrative Data To Measure Financial Health
This brief examines three approaches for measuring financial health using administrative data and how three Financial Health Leaders – LendingClub, Credit Karma, and Commonwealth Bank of Australia – used them to inform their products, programs, and strategies.

Alejandra Ruales, Senior Manager, Financial Health Network
Helen Robb, Senior Manager, Financial Health Network

Top Takeaways

Organizations can analyze administrative data using different approaches. Choosing the best approach to implement will depend on a company’s proposed use case, available data types, and resources available for analysis.

Tracking individual administrative metrics is recommended for companies with products targeting specific outcomes or with access to data on few financial health indicators.

Aligning with a survey-based model of financial health is best for companies that have broad data and baseline survey results.

Creating an independent measure of financial health based on administrative data is best for companies heavily invested in research.

Data Spotlight

See what three Financial Health Leaders discovered using administrative data:  

  • LendingClub found that more than 50% of customers who used its Balance Transfer product increased their FICO scores.  
  • Credit Karma used 35,000 members’ administrative and survey data to create a customer segmentation model.
  • Commonwealth Bank of Australia made it easier for customers to connect with almost $500 million in government rebates and benefits.

Featured Leaders

The insights in this brief were developed with strategic contributions from LendingClub, Credit Karma, and Commonwealth Bank of Australia. The opinions expressed in this report are those of the Financial Health Network and do not necessarily represent those of our featured leaders.