Analytics Capabilities
If your requirements go beyond generic, bureau-based solutions, you are well situated to take advantage of our custom empirical models, strategy optimization tools, custom analyses, consulting services, research, and project management.
Solutions for practically any size institution
- Larger institutions—See how we can help you improve your analytical skills in score development. We can help you create custom scores and other specialized products, as well as set you up with DecisionCentre® to quickly implement scores and strategies.
- Mid-size institutions—We can introduce best practices for incorporating credit bureau characteristics into decisioning models. We can set you up with DecisionCentre to enhance your own analytics capabilities.
- Smaller institutions—In addition to supporting you in analytics and model development, we can help you integrate best practices in credit risk management and credit scoring.
Flexible custom model development
Depending on the resources and information you have available, you can take advantage of an expert or empirical model:
- Expert model, based on experience in credit management and best practices (when there is not enough information to generate a statistical model)
- Variables explain the credit and risk behavior of a specific portfolio; each variable is assigned a weight and correlation with risk
- Represented by a table of scores that determines the level of risk and the cut-off score for approving credit
- Should be monitored monthly and adjusted if necessary
- Empirical model, based on socio-demographic information, credit bureau data and internal performance
- Uses statistical methods for selecting the sample and developing the model
- Should be monitored quarterly and adjusted if necessary
Put our solutions to work throughout the customer lifecycle:
- Account acquisition—Risk scores (generic and custom) and bureau credit characteristics enable complex and sophisticated underwriting strategies. Our easy-to-implement solutions help reduce risk and operational costs related to manual reviews and processing.
- Portfolio management/Batch processing—Consumer credit risk profiles are in a constant state of flux, a risk shared by all lenders with exposure to a given consumer. Periodically reviewing customer profiles enables you to identify possible ways to mitigate dynamic risks. In large markets, monthly reviews of the entire portfolio are now considered a best practice.
- Line management—Better credit line management begins with deepening your knowledge of each customer and each customer segment. Monitoring cardholder usage behavior can help you understand how they may handle initial line assignments and subsequent line increases. Statistical methods can also help you target segments with the highest propensity for card usage, while reducing losses.
- Retention—In an increasingly competitive market, relationships are essential for customer retention. Portfolio reviews enable you to see beyond your own limited lending relationship with particular individuals and give you insight into each consumer’s overall financial profile. This can help you uncover changes in performance, so you can make pre-emptive changes and tailor treatment strategies to improve retention of profitable accounts while mitigating the impact of unprofitable ones.
- Increasing usage—Increase profitability and loyalty and raise usage by identifying the most desirable customers within the portfolio. Target them with the most appropriate and attractive incentives to expand their relationship with your institution.
- Fraud prevention—Validate applicants and reduce fraud by using identity verification and authentication solutions. Safeguard your business and your customers by taking the right measures at the right time. Throughout the customer lifecycle, you can verify that identifying information is correct and that the right customers are accessing their own accounts. You can also plan ahead to react quickly and effectively to data compromises. Our solutions help you improve profitability, reduce losses and operational costs, and strengthen customer confidence for better relationships.
- Collections—Collect more and spend less by determining which accounts you are most likely to collect from, focusing resources more effectively. You can better segment accounts based on likelihood of recovery and dedicate more resources to these highly collectable accounts, recovering more dollars while spending less time pursuing debtors who cannot or will not pay.
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