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Delphi for Customer Management

What can it do for me?

Delphi for Customer Management is an event monitoring service that identifies changes in the credit behaviour of your existing consumer credit customers, then, using highly intelligent scorecards, provides a continually updated risk assessment of your consumer credit portfolio.

DCM can be used for a range of customer account management activities, including:

  • Credit Limit management
  • Credit risk screening for cross-selling new products and services
  • Collections / recoveries management
  • Predicting propensity for additional borrowing
  • Basel II reporting.

 

Key Benefits of Delphi for Customer Management

  • Better customer credit management decisions - Access to Experian’s data assets and analytics enables you to make the right account management decisions to grow your business, but at the same time, control bad debt, business risk and exposure.
  • Cost effective – We provide constantly updated risk scoring through a managed service, saving you the time and cost of maintaining your own custom credit scorecards.
  • Saves time - By identifying only those customers with a significant credit event who require action.
  • Tailored to business requirements - Where needed, additional characteristics can be added for specific organisations or market sectors to ensure the overall scoring solution meets every business requirement.
  • Better information - Incorporates shared data from many other lending organisations into the score, giving a true ‘single customer view.’

Delphi for Customer Management:

  • Simplifies the interpretation of complex credit bureau data by delivering a simple suite of predictive credit scores
  • Powerful enough to be used as a stand alone scorecard
  • Returns the underlying events in the last period for each account so you may act on it as required
  • Returns over 200 variables, summarising every aspect of credit information
  • Provides multiple scores to target each specific area of customer management
  • Is regularly rebuilt to reflect the latest data and economic conditions
  • Ensures compliant use of all elements of Experian’s consumer database.

Experian is provided with the names and addresses of all the accounts / customers to be monitored. These can be supplied from data extracted for the regular monthly Credit Account Information Sharing (CAIS) update file, or from a bespoke input file.

These names and addresses are added to the Delphi for Customer Management system, along with updates to Experian’s consumer database – such as new CCJs, CAIS status changes, searches, aliases and linked addresses. Together, these updates are known as significant events. Examples include:

  • Missed payments
  • Registration of new judgments
  • Individual Voluntary Arrangements
  • Bankruptcies
  • Sudden increases in credit activity
  • Changes of address.

Every week, Experian monitors the customer file for significant events. If one is detected, the customer is re-scored using the Delphi for Customer Management scorecards. A file is then passed back from Experian containing the events and the new scores on either a weekly or monthly basis.

The Delphi for Customer Management events and scores can then be incorporated into all the relevant management processes in your organisation.

With Delphi for Customer Management, Experian has developed a family of models for application in credit risk, collections and marketing.

These are as follows:

  • The Account and Arrears Management (AAM) score remains the leading scorecard used on monitored customer accounts. The AAM score predicts the likelihood of the customer going bad within the next 12 months, based on the combination of the existing credit relationship and the data shared concerning the customer’s other credit relationships.
  • The Consumer Indebtedness Index (CII) provides an assessment of those customers that have high levels of indebtedness and may experience delinquency as a result. The CII is a score in the range of 1 to 99, where scores over 40 highlight customers that should be carefully managed. Customers with multiple credit and store cards with high revolving balances frequently achieve such scores and need additional management, no matter what their current repayment status.
  • The Debt Collections score identifies the likelihood that a customer will make a payment on their delinquent account in the next three months. This score is key, especially early in the delinquency cycle, as it gives an indication of general repayment issues and helps to manage the initial strategies that the debt collections team adopt.
  • The Credit Risk Screening score is used to screen marketing campaigns targeting existing customers and is aligned to Experian’s Delphi for New Business scorecard. It screens the marketing campaign recipients for creditworthiness, saving money on targeting customers with inappropriate products.
  • The Credit Propensity model predicts the likelihood that a customer will take on new credit over the next six months. This will highlight customers that are credit hungry and you can either use this to minimise your exposure, or to up-sell in order to maintain loyalty.
  • Basel II - Experian has introduced three core Basel II scores into Delphi for Customer Management:
  • Probability of default – this predicts the likelihood that an account will default over the coming twelve months. This score is more accurate than an internal assessment as it accounts for the customer’s external credit behaviour.
  • Probability of default (mortgages) – this predicts the likelihood that a mortgage account will default over the coming twelve months.
  • Exposure at default – this estimates the outstanding balance on an account when it goes into default

Related Information

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Testimonial

"Both this product, and our ongoing relationship with Experian, have proven productive and successful."
Iain Lang
Chief Credit Officer, Santander Retail Bank.

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