Connected Analytics’ Credit Strategy and Policy service is widely applicable across the credit lifecycle and for different portfolios, with the objective of optimising the credit risk decision parameters.
For existing portfolios, this service incorporates the review of the strategies, policies and decisions that are in place in light of the target objectives, followed by identification of how they could be enhanced to maximise the target outcomes (e.g. profitability within risk appetite boundaries). In such exercises, a solid understanding of the current portfolio performance, the competitive landscape, prevailing regulatory frameworks, the reasonable potential improvements and implementation constraints, are all important considerations of any recommendation. Where data is readily available, the exercise can either be data driven or driven by experience and the impact assessed by data validation.
For new portfolios, this service includes the design of strategies and decisions that can support the launch. However, unless there is an appropriate dataset available, which will not always be the case, the exercise typically relies on experience to drive recommendations.
Credit Strategy and Policy is relevant in the following business areas:
- originations
- account and customer management
- collections.
Operationalising collections models and implementing policy rules can be undertaken cost-effectively and efficiently through the deployment of collections software from our partners, Katabat. These services include a bespoke model to manage hardship applications.
This service is often provided as part of the following Solution Sets: