Scorecard Health-Check - Ensure your scorecards are still fit for purpose.
We all work in a constantly changing market place and an evolving economic climate.
Staying one step ahead of emerging trends with on-going analysis of your scorecards and decision-making policies will help ensure that you safeguard your customers, protect your business and your cash flow.
Our scorecard health check service will provide you with a clear view of the efficiency and cost-effectiveness of how your scorecard is used within your current decision making process. It provides critical insight that indicates your exposure to risk, the strengths of your strengths of current decision process and efficiencies that will help you stay one step ahead of the competition.
Maximise business profitability by ensuring that accept/decline decisions on new credit applicationsare based on scorecards.
Secures a competitive edge by accepting the best customers for your product/service offers and declining unprofitable customers that are likely to require costly management intervention further down the line.
Experian’s scorecard health check review will report and highlight where your current decision-making tools are performing well and where improvements could be made. Typical business challenges highlighted and addressed through this review include:
Are your scorecards discriminating as strongly now as they did when they were initially deployed?
Were your scorecards built on applications from a different economic climate?
Are your cut-off policies aligned to the current and future economic conditions?
Is the current demographic profile of applicants similar to the scorecard development sample?
Are you making best use of data assets and scores that could be available to you?
Are you maximising customer value by ensuring that your customers have the right product offering?
Are you targeting the right individuals to enhance collection efficiencies?
Are your scorecards still attuned to your current business policies and risk appetite?
An Experian scorecard health check is tailored to the specific requirements of the business. It can be applied where any level of decision-making occurs through the credit lifecycle – from acquisition to collections. The comprehensive report incorporates a benchmarking summary of your strengths and weaknesses in comparison to your market peers.
- Up-to-date insight and data to support accurate and timely decisioning
- Understand strengths, opportunities, weaknesses and threats through a detailed analysis of your current scorecard suites
- Tailored report to focusing on your business objectives
- Holistic review across the customer lifecycle
- Benchmark against your competitors and market peers
- Identify business challenges and address them effectively
- Clear improvement strategy reflecting priority and ease of implementation
Experian will work with your organisation to tailor a scorecard health-check report that will highlight potential opportunities to enhance your decision-making. There are four key stages to the Health-Check service:
- Benchmarking against market peers - Provides insight into how your portfolio compares to your peers within the market. This could highlight where to focus actions as part of the overall road-map.
- Is your scorecard performance optimal? Review how scorecards are performing against business goals and expectations.
- Can policy and strategy rules be enhanced? Ensure that your current policy and strategy rules are being applied effectively and taking into account current market conditions which may impact scorecard discrimination and decision-making. Enhanced policy rules can help to focus underwriters on applications where they can have the most benefit.
- Assess potential opportunity from new data sources - Review of where potential uplift could be obtained through provision of new / different data assets.
Given early signs of economic growth recent emphasis has been on increasing approvals through acquisition strategy. Experian has been able to illustrate that re-developing acquisition scorecards coupled together with the usage of new data assets could deliver in excess of a 5% increase in approvals for no predicted impact to your exposure to risk.