The economy is fluctuating to such a degree that without the proper data and insight, trying to plan accordingly is nigh on impossibility. How can you help your customers before they become delinquent?
Lenders need to be proactive in planning for potential spikes in arrears. You need the data to be able to allocate resources where they are most required.
Through Experian’s Arrears Foresight tool, we can provide you with a granular view of your portfolio. Using variables such as unemployment indicators (at a regional and sectoral level) and income shock, we can help clients identify vulnerable customers before their financial situation worsens.
Our Arrears Foresight tool brings together unemployment forecasts, the latest credit insights on the UK market, as well as traditional credit risk indicators in the form of Delphi for Customer Management (DCM) scores. We also have an award-winning Economics team available to help you better understand future trends and scenarios.
We segment your portfolio based on a number of variables and then model their risk exposure. This is presented back to you via Tableau where we use a red, amber, green status to visually indicate where your focus should be. This can be done at a portfolio, regional or sector level. You’ll also get an overall probability of default as well as the volume and value of arrears predicted within a given portfolio.
Identify those customers worst affected by a change in income can help shape any pre-emptive action
Emergency payment holidays can be a precursor to delinquency. Identifying these customers can aid communication stratergies
Identify customer segments at risk of unemployment to help clients better forecast potential losses
Be able to see a credit risk score for every customer to tailor your portfilio
Stress testing against possible future economic scenarios will help you better plan and prepare.
Receive insight into who your most vulnerable customers are - at a portfolio, regional or sector level
Allocate resource where it’s most required
Reduce bad debt by taking pre-emptive action before a customer’s financial situation deteriorates