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Turn compliance into competitive advantage
Do you need to review your scorecard?
- Responsible lending in an ever-evolving world
- Have your customers changed over time?
- Accurately predict your customers' credit needs and to lend responsibly
- Do know which of your customers are likely to move home – and when?
- Does new market have to equal new risk?
- What’s the score with fraud underwriting?
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Scorecard strategy development
Imagine being able to quickly and easily plug into a vast array of market-leading data, analytics tools, software and expertise to enable you to make fast, accurate decisions.
You will be able to win, retain and grow the very best mix of customers by targeting, matching and approving the right customers with the most appropriate credit products and services offerings, while turning away fraudulent, suspicious or riskier applications.
By developing tailor-made customised scorecards from historic data, on-going reviews and optimisation can be maintained throughout the customer lifecycle to maintain profitability and peak performance.
Experian provides its clients with access to a market leading breadth and quality of data which can be linked in with our unique range of analytics tools, software and expertise to create intelligent data models and highly predictive scorecards (that incorporate customer and market information and future micro and macro trends).
These resources help organisations to maintain the very best balance of targeting and then approving profitable applications from the largest numbers of the right sorts of customers most suited to particular product and service offerings (e.g. credit) - whilst avoiding unprofitable ones more likely to require expensive management interventions (e.g. collections or even write-offs) further down the line.
We also develop customised scorecards using historical data you supplied and tuned to the client’s specific customer profile and risk attitude as well as periodic reviews to maintain optimum scorecards performance.
- Target and win the most relevant customers with suitable offers made at the right time.
- Get a clear picture of risks to help underpin operational efficiency.
- Maintain long-term portfolio growth.
- Ensure regulatory compliance, competitiveness and avoid reputational damage.
- Creative expertise combined with tried and tested methodologies to make best use of available data and deliver effective solutions.
- A quality assured process, guided by our expert consultants who are senior members of the Experian team to ensure the successful delivery of a scoring solution.
- Tailored to the client’s business objectives, risk attitude and portfolio to optimise lending decisions.
- Provide effective knowledge transfer to the client team responsible for deployment and monitoring of the solution.
- A completely transparent process which is fully documented at each stage of the development.
- A flexible approach – working with clients’ preferred methods and working onsite at key milestones where required.
- Ensuring that clients’ internal governance standards are met as well as any legislative and compliance requirements.
Using our market leading data and analytical resources, application scoring in the origination process is used to predict how a potential customer will behave in the future.
With this information, decisions can be made whether to accept or decline an applicant.
This view of each individual can help develop a picture of the value of an accepted applicant, to inform decisions about the products and terms offered.
Behavioural scoring is used throughout the life of a customer relationship to inform management strategies for each customer, whether managing bad customers or extending the relationship with good customers.
As well as credit risk, scoring and strategy objectives are also developed to predict:-
- Indebtedness – how will the individual’s level of indebtedness affect their ability to honour this credit commitment?
- Bankruptcy – will this applicant/customer become bankrupt?
- Attrition – will this applicant/customer stop using this credit facility in the future?
- Propensity – will this applicant/customer take out more credit in the future?
- Cross sell/up-sell – which candidates are the best candidates for offers of other products or services?
Behavioural scoring is also used to prioritise collections activities and reduce collections costs.
An understanding of the customer drives collections and debt recovery activity in terms of:
- Risk and delinquency – will this customer continue to be delinquent and how much is at risk
- Customer value – how valuable is this customer to the organisation and what is the most appropriate action to maintain the relationship?
- Potential recovery value – how much could be recovered from the account and will it cover the costs of the collections activity?