Batch Prescreen Definition
Batch prescreen is a process wherein a credit offer is made by a lender to certain customers who are prequalified. The pre-qualification status is based on the lender’s credit criteria and risk management policies. This process is done in a batch using a customer list acquired from a credit reporting agency or national credit bureau, according to the Securities and Exchange Commission (SEC). The SEC is a U.S federal agency that aims to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
Batch prescreen allows financial institutions to save money on marketing and solicitations costs through the elimination of unqualified prospects. By focusing on the qualified prospects using batch prescreen, marketing efficiency and conversion rates increase. This process helps financial institutions reach prequalified prospects through target marketing campaigns.