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What is benchmarking?
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Today’s market place is constantly changing.
As an organisation’s business strategies evolve it is imperative to understand the impact these changes are having on the customer base. Detailed in-house monitoring of portfolios is invaluable – but are the results reflective of a change in strategy or macroeconomic factors and overall market trends?
Business Intelligence is a consultancy service from Experian which offers full CAIS members the opportunity to take advantage of the data held by Experian to gain a detailed view of their position in the UK financial market. It allows you to view your performance against competitors in key areas and can also show the impact of strategy changes and market conditions.
Here is an overview of the services we provide:
How well prepared are you for base or standard variable rate rises?
Whether you are a mortgage lender or not are you aware of the potential impacts to your customers?
By combining the customer affordability position with economic scenarios, an understanding of a person's ability to absorb increased monthly payments is provided.
Market & Portfolio Insight
Providing the market context against which your portfolio performance can be benchmarked across a number of objectives from new lending through to collections and recoveries delivering a comprehensive review of the effectiveness of your strategies against your peers.
Forecasting determines the likely future position of both your portfolios and the general market trends.
The combination of your customer profile, lending policy and economic impacts upon your portfolio are used to forecast a range of outcomes.
Concentration Risk provides a view of geographic, demographic and risk concentrations within a portfolio and the market.
It uses a combination of a relative lending policy to the market and economic forecasts to produce recommendations for future risk appetite.
Loss Forecasting provides a 2-3 year horizon loss forecast combining sophisticated modelling by lending risk profile and local economic forecasts tailored to the specific portfolio.
These are refreshed quarterly considering new lending, the latest portfolio arrears figures and micro-economic forecasts.
Interest Only Mortgages – maturity analysis
In addition to understanding market and specific portfolio concentrations of Interest Only Mortgages, Experian combine a number of data assets - including Experian’s National Property database - and models to provide market and portfolio specific predictions of equity position at point of maturity
For new entrants into a vertical or geographic market, this analysis provides an understanding of the lending climate, levels of demand and potential loss associated with the targeting and risk appetite of a new product.
Where a lender is already established, the market opportunity looks at segments of under penetration which represent profitable new business in-line with lending policy. Such insight is invaluable when designing new products, reviewing lending policy or looking for areas for growth.
Collections and Recoveries In-depth Analysis
Understanding relative collections performance against a benchmark is always difficult due to differing profiles of business entering collections.
This analysis provides a drill down into your collections performance by balance and risk profile, identifying areas of strength and opportunities to improve return on collections investment against a backdrop of increased demands on household incomes.