Move forward into dynamic decisioning with the company you’ve long trusted for credit risk expertise
For more than 30 years, Experian Decision Analytics has been managing and enriching customer data to help organisations like yours make better credit risk decisions. Our powerful decisioning products and services combine data intelligence, analytics, software, reporting and consulting to turn insights into actions that improve your business' performance.
PowerCurve™ Customer Management
Effective customer management
Competition over profitable customers is fierce and unrelenting. To win, you need more insight into the true nature and full value of your customer relationships. You need the means to develop the relationship in an ever-more-profitable direction, and you have to do that in a changing business environment while reducing risk and cost.
Profitable customer data management
PowerCurve™ Customer Management from Experian gives you unmatched capabilities for turning customer-level analytic insights into a coordinated set of account-level treatment strategies, rapidly deployed and consistently executed across product lines and channels. The platform creates a unique profile for each customer, encompassing their entire relationship with the organisation. This dynamic profile can include scores and metrics for risk, profitability, propensity to pay and lifetime value. The platform makes it easy to incorporate new data sources that further enrich the profile. This comprehensive profile is the key to accurately identifying your most valuable customers and those with potential to become more valuable. It’s also the key to creating powerful segmentation schemes.
Rapid test-and-learn cycles
Business users quickly deploy new and updated strategies, without the need for IT assistance, including designating them for Champion/Challenger testing. They can also control performance monitoring by simply selecting from a range of dynamic report styles, which self-configure to match the segmentation characteristics and key performance indicators (KPIs) in the strategy. Because performance reports are viewable within the design environment, users quickly see what is working well and what isn’t. Gaps between expectations and results point to opportunities for improvement as well as early signs of market and economic changes affecting customer behaviour.
PowerCurve Customer Management
• Easily incorporate new decisioning capabilities into your existing environment
• Drive higher decisioning performance and return on investment throughout your organisation
• Accelerate time to market while boosting overall productivity
• Adapt and manoeuvre in ever-changing markets
How the PowerCurve platform enables these capabilities
• Open, modular framework
• Shared data, analytics, software and capabilities across the customer lifecycle
• More focus on a decision-centric approach than current solutions
• Seamless integration and shared capabilities across the customer lifecycle
• Creation and inclusion of new and innovative products
Automated customer-level management, data management, and predictive analytics create a complete proposition for customer management.
- Reduce bad debt levels and manage overall exposure
- Increase take-up rates with relevant offers
- Free staff to focus on sales and customer retention
- Focus resources on highest value customers
- Ensure consistency of decisions and communications
Holistic customer profiles for accurate, holistic segmentation
PowerCurve™ Customer Management creates a unique profile for each customer, encompassing their entire relationship with the organisation. This dynamic profile can include scores and metrics for risk, profitability, propensity to pay and lifetime value. PowerCurve™ makes it easy to incorporate new data sources that further enrich the profile. This comprehensive profile is the key to accurately identifying your most valuable customers and those with potential to become more valuable. It’s also the key to creating powerful segmentation schemes that drive differentiating treatments in all of the customer’s interactions.
Now you can apply customer-level differentiation to a wide range of account-level decisions:
Pricing — Price account services at competitive levels while better controlling risk and maintaining margins by assessing profitability at the customer level.
Limit management — Make proactive and reactive limit increases and decreases based on overall customer and shadow limits. Automatically authorise extended credit limits for good customers, based on not only risk, but also overall profitability and projected lifetime value.
Cross-sale and up-sale — Identify opportunities to meet a wider range of customer needs while distributing residual credit and risk exposure across accounts. Improve targeting and coordination of outbound marketing campaigns. Respond to inbound requests in a manner that demonstrates you know whom the customers are and value their business.
Utilisation — Proactively reach out to customers who have accounts with potential untapped value. Customer-level segmentation helps you assess whether the products they currently have are the best ones to serve their needs. Offer alternative products they’re more likely to use in a manner that is profitable for your organisation.
Customer retention — Reduce attrition by identifying customers at risk and assigning account-level incentives (rewards, limit increases, balance transfer offers, etc.) to retain them. Proactively reach out to dormant accounts with potential untapped value.
Debt control — Carry out regular customer reviews to detect early signs of increasing risk. Take carefully targeted pre-collections action to help customers avoid delinquencies. Consider the value of the entire relationship when assigning focused collections treatments
A common design environment for all Customer Life Cycle decisioning areas
This new Studio has all of the graphic design, validation and simulation tools you expect from Experian, plus these new features:
• Time-saving drag-and-drop strategy "building blocks." Users quickly build out strategies by dragging and dropping reusable elements, such as a risk scorecard, segmentation by marital status or a standard calculation for ability to pay, from a common repository.
• Dynamic strategy-driven performance monitoring. The Studio puts control of strategy monitoring in the hands of business users. They no longer have to pull data sets and ad hoc reports or turn to IT to get monitoring set up or changed on host systems. Instead, they simply select from a range of dynamic report styles, which self-configure to match the segmentation characteristics and key performance indicators (KPIs) in the strategy. Once the strategy is deployed, performance monitoring results are displayed inside the Studio, making it easy to see which parts of strategies are working well and which need improvement.
• Analytics for help in building better strategies. PowerCurve™ component-based architecture enables companies to flexibly add enhanced capabilities, such as Assisted Strategy Design. Assisted Strategy Design provides interactive analytic guidance and can also generate decision trees automatically based on user-specified parameters. With this assistance, users without analytics expertise are empowered to build higher-performing strategies, and those with analytics expertise can accomplish more in less time.
Common repositories for shared access to reusable decisioning resources
At the heart of PowerCurve™, common repositories for credit risk decisioning resources help companies share and reuse work and manage strategy versioning and deployment into operations. Implemented in a centralised or distributed architecture, PowerCurve™ platform repositories comprise:
• Decision solution elements. Anything contained in a decisioning strategy can be stored as a reusable "building block" in a shared solution repository. This includes not only scorecards and standard calculations, such as income estimation, but also summary population characteristics based on data from multiple sources. It might also include segmentation criteria, such as a split (number of credit cards plus limit utilisation) developed for a loan eligibility strategy that might also be useful for a pre-collections strategy.
• Strategy templates. Companies can help their users get a jump-start on strategy design by providing them with ready-made content. This content may include complete strategy templates, infused with Experian knowledge, for specific types of credit risk decisions, such as initial credit line assignment. It could also consist of decision sub-trees (parts of strategies) or even a single cut-off point (e.g., number of credit cards plus limit utilisation). Users can copy and modify Experian templates to create new templates, as well as develop their own templates.
• Performance reporting. Performance monitoring outputs are stored as reports in this repository, from where they can be easily accessed and viewed within the Studio's graphical environment. Report content is specific to the segmentation and KPIs for each strategy and the dynamic report style selected by the strategy designer. Some report styles are specific to a life cycle decisioning area (e.g., delinquency roll rate reports for credit card collections). Others are more generally applicable (e.g., a referral rate analysis report, which could be applied to originations strategy performance monitoring for both credit card and loan portfolios).
What is PowerCurve™?
The PowerCurve™ platform helps companies make the right decisions, across the Customer Life Cycle, in dynamic business environments. This breakthrough decision management platform provides new levels of flexibility, insight, control and agility so you can:
- Easily incorporate new decisioning capabilities into your existing environment. Add just the software and analytics components you need to solve targeted business challenges.
- Drive higher decisioning performance and return on investment throughout your organisation. Share decision-ready data, best practices templates, reusable strategy building blocks and connectivity standards across product lines and Customer Life Cycle functions.
- Accelerate time to market while boosting overall productivity. Put powerful yet intuitive analytics and tools for strategy design, deployment and performance monitoring in the hands of business users. Empower them to assume a larger role in decision management while freeing IT and analysts for other priorities.
- Adapt and manoeuvre in ever-changing markets. Make use of the integrated test-and-learn framework to immediately assess how well customer decisioning is working. Quickly reconfigure strategies as business conditions change.
A unified platform for strategy design and execution, PowerCurve™ connects the analytic and operational environments for all customer decisions. The multi-tiered, component-based architecture, built with industry standard technologies, greatly increases your decisioning power:
PowerCurve™ cost-effectively fits your needs, from tightly focused to large-scale. Quickly implement what you require to solve a specific business challenge, such as credit card limit management or risk-based pricing. Extend into other product lines and Customer Life Cycle areas when needed, deriving more value from common technologies and shared, reusable decisioning elements as you go.
PowerCurve™ enables you to gain more value from internal and external data. Your users don’t have to mine raw data for insights. They simply drag and drop them from a common repository into their strategies. Enhanced strategy design capabilities analyse population characteristics in the data and list them by their predictive power. An integrated data enrichment feature connects to multiple external sources, combining their data to create decision-ready summary characteristics. Strategy templates, infused with Experian knowledge and industry best practices, also reduce the time from data to actionable insights.
PowerCurve™ puts control over decision strategy design, deployment, performance monitoring and updating in the hands of business users. For example, they no longer have to pull data sets and ad hoc reports or turn to IT to get monitoring set up or changed on host systems. Instead, they simply select from a range of dynamic report styles, which self-configure to match the segmentation characteristics and key performance indicators (KPIs) in the strategy. They also can change monitoring as needed during strategy updates and refinement.
PowerCurve™ gives you the means to make your customer decisioning more alert, nimble and competitive in dynamic markets. Performance monitoring reports correspond exactly to each customer segmentation strategy and KPIs. Gaps between expectations and results provide early alerts to changing market conditions and opportunities for greater gain. Easy-to-use analytics suggest ways to refine segmentation and improve performance.
Consulting is at the heart of every Decision Analytics delivery by Experian. Consultants work with clients at every stage of the project, first to fully understand the business and strategic direction, and then to help design and implement systems and processes that deliver objectives.
Following implementation, Experian consultants work with clients through a structured and regular review program to continually evolve and enhance strategies, so that organisations continue to gain maximum value as their needs change and the business grows. Experian creates a partnership with clients to deliver products and services that address their business challenges for today, and in the future. Bringing a fresh approach and independent viewpoint to every business, it delivers practical solutions that deliver measurable results.
Strategic customer management for small and medium sized enterprise portfolios
The Strategic Customer Management white paper explores small and medium enterprises (SME) customer management and the benefits that can be realised from introducing a strategic approach. In this paper we cover topics such as the nature and type of SME that is suited to automated decision making and the many data sources that add value in SME decision making. The use various models, segmentation techniques and strategy setting for SME's are also key themes, as well as the benefits that early adopters have already achieved having implemented a strategic approach.
Strategy optimisation: The next step in credit customer decisioning
Over the past 25 years we have moved from credit scoring, to strategy management and now we approach a new third phase; strategy optimisation. In order to keep up with the leaders, many organisations will need to change. Strategy optimisation is the ‘next step’ in customer decisioning. The benefits of strategy optimisation Strategy optimisation is being applied across the credit lifecycle; for new business, customer and account management decisioning through to collections and recoveries.
The issues of customer management for retail banking
Retail banks are continually striving to improve their risk adjusted return on capital. Bank profitability is driven by revenue, costs and bad debt losses whilst maintaining high levels of customer satisfaction and regulatory compliance. All of these are directly influenced by the daily decisions made in managing relationships with customers.
Responsible Lending and Affordability
The paper starts by examining recent trends in indebtedness and provides an overview of the main factors driving the responsible lending debate in the UK. It then describes how an automated responsible lending solution can be delivered using a new generic mechanism for estimating disposable income and assessing consumer affordability. Illustrations of how this new responsible lending mechanism works are provided for both mortgage lending and unsecured lending in the prime sector.
Modelling personal bankruptcy in the UK
This paper outlines the impact of this increase in individual insolvencies, the research undertaken by Experian and the solutions derived from the research, which are now being adopted by UK lenders to identify and reduce losses from personal bankruptcies.
Over indebtedness and responsible lending
The paper outlines the indebtedness issue in the UK and details the results of the research, which has led to the development of a number of initiatives from Experian to support the responsible lending practices that are now being pursued by many UK lenders.