Advantage Finance and the challenge of scorecards

Overview: Advantage Finance and the challenge of scorecards

A forward-thinking approach to developing scorecards for an innovative motor finance provider

Advantage Finance, a motor finance company from Grimsby,  had been monitoring the accuracy and performance of their existing scorecard, which had been in place for several years.

At a time when the overall sales of vehicles are falling, staying competitive is vitally important.

Given the current environment with the rising costs of living, economic uncertainty and the rapid pace changes are taking place, Advantage Finance needed to be confident that their decisions were the right ones and continued to reflect a consumer’s circumstances accurately. To respond, and reflect the economy, Advantage Finance saw a need to assess the performance of their scorecards.

Car dealer giving key to client

Challenge overview

With the current economic uncertainty, rising costs of living and the rapid pace changes taking place, Advantage Finance needed to be confident that their decisions were the right ones that accurately reflect a consumer’s circumstances.

The company were unsure if the scorecards they have suit their risk appetite and growth plans, whether this was the right time to rebuild the scorecards or if this new model would perform better and ensure greater value.

Challenges
  • Assess whether the scorecards they have are suited to their risk appetite and growth plans
  • A rebuild needed to be able to demonstrate a significant enough improvement on previous performance
View Advantage Finance Profile
Company Bio:

Advantage finance are a Grimsby-based motor finance provider, founded in 1999. They provide hire purchase products for both new and used motor cars, vans, motorcycles and caravans and the company has been successful from the start. Operating in an extremely competitive market, Advantage Finance continuously look for ways to innovate and improve and as a result, has gained a reputation as a standout, ambitious and forward-thinking motor finance provider.

Founded: 1999
Number of employees: 200+
Industry: Financial Services (Auto)

Solution overview

Advantage Finance wanted to be proactive, versus reactive and be certain that any developments or changes were going to deliver value – resulting in a partnership with Experian. The Experian team were keen to demonstrate to Advantage Finance the value of rebuilding their scorecards now, as well as showcase the power of machine learning in modelling. This led to an investment in Experian’s Ascend Intelligence Services Challenger™.

Through use of AIS Challenger™, Advantage Finance were able to compare their existing model to the new models and quantify the benefits to their business. The outcome has ensured a significant improvement over the existing model which gave Advantage Finance confidence to continue delivering significant value to their business over the coming years.

Advantage Finance were able to quickly deploy the new Machine Learning model offering more accurate, confident decisions. Offering immediate value, as well as ongoing value.
Learn how AIS Challenger™ can help your business
Results
  • 11% improvement in the predictive power through Machine Learning
  • More accurate, confident decisions
  • A 20% reduction in bad rates and gave them greater confidence as they implement their growth plans
Solutions
Advantage Finance and the challenge of scorecards

Advantage Finance: A forward-thinking approach to developing scorecards

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