Maintaining a healthy credit portfolio requires insight into borrowers’ current and future financial condition and payment behavior. Behavioral scorecards and credit line strategies help organizations evaluate and optimize the credit they extend.
Rewarding valuable customers and managing unprofitable ones is critical to effective business performance. Organizations that provide the right products and services to customers and invest in the most valuable customer relationships are able to build and retain customer loyalty and benefit from customer referrals.
Angoss predictive analytics software and solutions allow you to:
- Profile profitable customers against unprofitable ones
- Segment customers into behavioral profiles and personas
- Create models based on profit drivers
- Build strategies to balance reward and profit
Angoss software and solutions capabilities for credit risk behavior include, among others:
- Data visualization makes it easy to determine which factors differentiate customer profiles by displaying dozens of graphs within seconds to answer questions such as:
- For credit lenders, what factors will aid in meeting Basel II requirements?
- For telecommunications companies, how do customers on regular billing plans differ from those on pre-paid plans?
- Which behavioral attributes can be used to encourage increased spend for high-value customers without increasing risk?
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Predictive decision tree algorithms are used to segment customers by their behavior. Flexible decision trees allow you to incorporate policies and best practices into the generated decision trees for optimal segmentation.
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Logistic regression models are built to score your portfolio, analyze the effectiveness of models and quickly predict customer behavior. New models can be easily compared and validated against existing models to help ensure customer profitability.
- Strategy Trees allow all of your origination analytics to be stored in a complete suite of predictive analytics software . Include Key Performance Indicators (KPIs) such as charge-off rate, tenure and profit directly within each branch of the strategy tree to balance “what-if” scenarios. Strategy Trees enable you to assign credit limit increases, pricing or cross-sell/upsell treatments to optimize customer retention and spend strategies.