Turn customer and market data into actionable insight to help shape your future business strategy

We all have access to ever increasing amounts of data, but it can only help you meet your business objectives if you can turn it into meaningful insight. Our analytics experts can help you to extract, interpret, segment, benchmark and model your data to create scorecards, propensity models, customer profiles and much more.  Helping you to improve the performance of both your marketing and credit risk strategies by making more informed decisions for your customers and your business.

Why Experian

  • Trust - Solutions that underpin compliance for consumers and businesses with reliability, security and scale
  • Managed Service - Strategic and tactical expertise to support organisations to develop capabilities in this area
  • Analytics & Decisions - Leading analytical capabilities to build the models to support decisions through optimisation
  • More than 30 years of global experience - Providing a wide range of analytics solutions to hundreds of organisations
  • Cross-channel - Configurable API delivers decisions to the appropriate channels. Option for cross-device recognition
  • Flexible Platform - Providing real time decisions to support existing technology stack rather than a full CRM investment
  • Data-to-the-edge - Highly flexible and scalable event driven architecture to drive low latency/high concurrency decisions
  • Risk Analytics - Turn information into insight and insight into action, helping you make the right decisions for customers across the customer lifecycle

    Data is at the heart of everything. It provides the raw understanding that fuels decisions. But, it is what you do with it and where it takes you that counts. We combine advanced tools and techniques with expertise in credit risk to help you bring data to life and turn it from information into insight throughout the customer lifecycle.

    Credit Scorecards and Custom Analytics

    Our customised analytical solutions help you to have a greater understanding of your individual customers’ needs, behaviours and financial wellbeing. Extensive experience in risk analytics means that we can help with solutions throughout the customer lifecycle.

    Bureau Analytics

    Our Credit Bureau scores summarise complex and diverse bureau data to create a clear view of risk and cutomer well-being helping you make the best decisions for your customers and your business.

    Identity and Fraud

    With attempted fraud increasing it is essential to ensure that effective fraud referral processes are in place that both minimise business risk and have minimal adverse impact on the customer experience.

    Commercial Delphi Scorecards

    Accurately predict business credit risks and failure within the next 12 months.

    Credit Scorecards and Custom Analytics

    Customised analytical solutions for your business that help set you apart and drive your strategy forward by making the best use of data

    Analytical solutions designed to meet your specific business objectives.

    Our custom solutions are built using your historical data and are therefore aligned to your customer profile. A customised solution enables all data available at the decision point (for example applicant demographics, credit bureau data, existing account information and geo-demographic information) to be used to predict how applicants and customers will behave in the future.

    Application Scorecards

    Tools that predict the probability that an applicant will behave in a particular way, helping you to make effective automated decisions.

    Behavioural Scorecards

    Helps to retain and grow the right customers for your business

    Collections Scorecards

    Ways to proactively segment your portfolio and manage your collections strategy enabling you to support your customers.

    Commercial Scorecards

    Tools that predict the probability that an applicant will behave in a particular way, helping you to make effective automated decisions.

    Scorecard Health Check

    Helps to retain and grow the right customers for your business

    Loss Forecasting with IFRS 9

    Ways to proactively segment your portfolio and manage your collections strategy enabling you to support your customers.

    Application Scorecards

    Application Scorecards are tools that allow organisations to predict the probability that an applicant will behave in a particular way, helping businesses to make effective automated decisions.

    The most commonly used application scorecard for credit, predicts the risk of a customer paying or not. This supports you as a business to make automated, accurate and consistent decisions on whether to approve, review or decline applicants.

    Application scorecards can help you predict many other different metrics such as:

    • An applicant’s affordability (ability to pay)
    • Potential future profitability
    • The likelihood to churn (attrition) etc.
    • In the case of a credit risk application scorecard the output is usually a numeric score provided for each applicant, with higher scores corresponding to lower levels of estimated risk

    Our application scorecards can enable you to:

    • Automate the application decision processes, reducing the cost of manually underwriting applications
    • Facilitate the ability of businesses to make accurate, consistent, fact-based decisions
    • Flexibly optimise and manage credit risk strategies including:-

    • Portfolio approval and bad debt management
    • Risk based pricing – offering preferential terms (e.g. credit limits, interest rates)
    • Cross-selling – appropriately identified customers can be pre-approved for other products that may be of interest to them

    How it works

    Application scorecards are statistical models typically developed using an institution’s historical data for the relevant product, if sufficient such data is available.

    If relevant historic data is not available, for example if the scorecard is required for a new product, then Experian can provide representative generic data from their extensive data sources.

    After the data has been extracted and verified it is critical to design a modelling data sample that is representative of the target portfolio and allows the resultant scorecard to meet the business objectives. This is achieved through detailed analysis of the available criteria, portfolio stability and behaviour. The model can then be developed using several methodologies, with linear and logistic regression proving to be the most common. Experian has more than 30 years of experience in successfully developing credit risk models for financial institutions.

    In addition to your data, captured at the point of application, the most predictive application scorecard developments include credit bureau data which provides a detailed view of credit history. In addition to scorecards, Experian can provide extensive retrospective credit bureau data to support application scorecard developments.

    Behavioural Scorecards

    Retain and grow the right customers for your business

    Do you know who your most valuable customers are? Are any of your customers struggling to repay their debts with you or elsewhere? If you want to activate the right customers, whilst mitigating the risks, knowing how and where to focus your efforts by maximising the use of all available data and insight in everyday decisions is key.

    How does it work?

    We develop statistical models combining your data with our data alongside expert consultancy to predict how a customer will behave in the future. Behavioural scoring is used throughout the life of a customer relationship to inform management strategies for each customer, whether managing and supporting customers with financial difficulties or extending the relationship with customers through enhanced features or new products.

    Collections Scorecards

    Improve collection and recovery rates

    When accepting a new customer’s application for credit, or agreeing to extend credit for existing customers, assessments should be made to indicate the likelihood that the customer will be able to manage financially and will be able to comfortably repay the amount borrowed.

    In addition, it is important to recognise that customer circumstances may change over time and lenders will need to understand them on an on-going basis in order to offer appropriate support throughout the relationship.

    In today’s climate, the prioritisation of accounts in collections plays an integral part in controlling bad debt, knowing who to prioritise and in treating customers fairly.  For example, how frequently and through which channel to contact them can be difficult balance to strike.

    Commercial Scorecards

    With increasing pressure on lenders to illustrate and stimulate small business lending are you optimally placed to clearly evaluate requests for credit, set appropriate lending terms and make confident lending decisions?

    Commercial scorecards can be used at the point of acquisition to accurately assess risk and help lenders to make decisions on whether to lend to businesses.

    In addition, they can be used within a customer management environment and are often used to support with Basel provisioning.

    Experian have a wealth of data sources and experience in combining these to develop bespoke commercial scorecards that can help you, as a lender, achieve business requirements.

    Our scorecards can help you with:

    • Improved lending decisions
    • Supporting regulatory requirements
    • The potential to offer the right product terms (including decisioning)
    • Managing credit risk
    • Incorporating new data sources into your decisions to increase predictive capability

    In addition, they will:

    • Reflect the latest market conditions
    • Provide an up-to-date profile of your customers – new and current
    • Optimally blend commercial Delphi data, commercial CAIS & consumer data from Directors/Proprietors/Sole Traders (where applicable) along with any additional necessary data
    • Provide a multi-purpose use by supporting Basel provisioning in addition to predicting risk. - There is a proven relationship between Commercial Delphi score and profitability of debt.
    • Reduce the number of referrals and therefore associated underwriting costs
    • Help you make faster decisions that in turn can improve customer experience

    How it works

    A range of modeling algorithms are available including logistic and linear regression modeling techniques.

    Considering all available predictive data items, a scorecard will be produced that combines these to output a score which accurately predicts any associated risk or concern of the applicant based on their profile and your policy and scoring rules.

    Scorecard Health Check - Ensure your scorecards are still fit for purpose

    We all work in a constantly changing market place and an evolving economic climate. Staying one step ahead of emerging trends with on-going analysis of your scorecards and decision-making policies will help ensure that you safeguard your customers, protect your business and your cash flow.

    Our scorecard health check service will provide you with a clear view of the efficiency and cost-effectiveness of how your scorecard is used within your current decision making process. It provides critical insight that indicates your exposure to risk, the strengths of your current decision process and efficiencies that will help you stay one step ahead of the competition.

    Experian will work with your organisation to customise a scorecard health-check report that will highlight potential opportunities to enhance your decision-making.

    There are four key stages to the Health-Check service:

    • Benchmarking against market peers - Provides insight into how your portfolio compares to your peers within the market.  This could highlight where to focus actions as part of the overall road-map
    • Is your scorecard performance optimal? Review how scorecards are performing against business goals and expectations.
    • Can policy and strategy rules be enhanced?  Ensure that your current policy and strategy rules are being applied effectively and taking into account current market conditions which may impact scorecard discrimination and decision-making.
    • Enhanced policy rules can help to focus underwriters on applications where they can have the most benefit.
    • Assess potential opportunity from new data sources - Review of where potential uplift could be obtained through provision of new / different data assets.

    Given early signs of economic growth recent emphasis has been on increasing approvals through acquisition strategy. Experian has been able to illustrate that re-developing acquisition scorecards coupled together with the usage of new data assets could deliver in excess of a 5% increase in approvals for no predicted impact to your exposure to risk.

    Loss Forecasting with IFRS 9

    Do you need support to understand IFRS 9 accountancy standards and how it affects loss forecasting? Our analytics experts can help.

    As of 1st January 2018, IFRS 9 accountancy standards will replace IAS 39. What does this mean for businesses when it comes to loss forecasting? How can we help to support the transition from IAS 39 to IFRS 9?

    The International Financial Reporting Standard (IFRS) 9 will see businesses making significant changes to the way expected credit losses are calculated. As a specialist in loss forecasting and impairment, Experian can work with you on a consultative basis to build and deliver a comprehensive approach to the new standards.

    IFRS 9 – Key Changes

    • Finance and credit risk teams will need to work together to forecast losses
    • Using a loss forecasting approach that leverages credit risk models used for managing the portfolio and embedding economics within these models
    • Determination of what constitutes a significant change in credit risk
    • A move from 12-month to lifetime losses when this has occurred
    • The requirement to build a forward-looking forecast of future economic conditions when identifying significant changes in credit risk and in models for expected credit losses

    How we can help your business?

    We can support you in anticipation of the accountancy standard change with an end to end solution covering four areas. This does vary however, from business to business, because your business is unique and our solutions can be tailored to your business requirements. Your loss forecasting methodology depends on whether you are under Advanced IRB or Standardised accounting standards, whether you have sufficient relevant historical data internally to support modelling lifetime losses and whether your lending policy or collections strategy has changed significantly in the recent past.

    Modelling Expertise

    With experience in building models that incorporate credit risk, we can support your internal modelling teams with acquiring new skills, or support you with a fully outsourced capability.

    Market Data

    It may be that you have a portfolio that is relatively new and has yet to build up the history required for lifetime loss forecasting. Alternatively, it could be that changes have been made to lending/collections policies that have made all, or a proportion of your historical data, inapplicable for future modelling. We can advise as to the best approaches regarding historical data.

    Economic Trends and Forecasts

    Our economists and credit risk analysts work together to understand the relationships between lending policy and the economy, and how it affects credit risk. We provide generic bureau scores with the economic impact embedded. You can use these scores to determine changes in credit risk and include them within lifetime probability of default models.

    Ongoing Evaluation of Forecast and Actual Losses

    Lifetime loss models should be re-assessed quarterly or bi-annually to keep up with changes in loss rates and changes in the economy. We can help with this and benchmark your position against your peers and against market lifetime losses.

    What are the benefits?

    • Enables you to efficiently meet regulatory requirements
    • Helps you make more profitable decisions at both a strategic and tactical level
    • Our extensive data coverage and economic forecasts supplement your internal view to provide robust loss forecasting
    • In addition to providing the initial modelling, we support the implementation and on-going refresh and monitoring of expected credit loss forecasts
    • Allows you to quickly adapt your products and lending policies to changing market conditions through data driven insight into the resilience of your portfolio to alternative economic scenarios

    Find out how we can help your business thrive

    Contact Us