BUSINESS SITUATION
Our client’s Net Loss Rate (NLR) went up by 26 basis points, prompting them to look for regulatory compliant solutions that could significantly reduce the mounting credit losses without impacting good sales
SGA APPROACH
- We developed acquisition scorecards using Bureau, Open Banking, and alternate (Regulatory Compliant features)
- We recommended optimal credit line assignment strategies to improve activation rates or take-up rates
- We provided optimal score cut-off balancing the approval rates and loss rates as per the risk appetite
- We helped our client deploy the ML models in legacy systems by providing the implementation code for legacy systems
ENGAGEMENT
Smart credit underwriting and credit line management for a leading financial institution
BENEFITS AND OUTCOMES
- A total of $151M of charge-off saving was achieved by using our enhanced credit origination models
- $708M Incremental Spend & $17M Incremental Finance Charges at Bad $ Savings of 146M from Line Assignment
KEY TAKEAWAYS
- Our solution beats the benchmark metrics provided by competition
- We deploy latest credit modeling techniques while being compliant with regulations
