As an organisation’s business strategies evolve it is imperative to understand the impact these changes are having on the customer base. Detailed in-house monitoring of portfolios is invaluable, but are the results reflective of a change in strategy or macroeconomic factors and overall market trends?
This service takes the form of a quarterly consultancy review consisting of three elements:
- Credit Strategy Setting
Benchmarking looks at your portfolios positions in comparison to their peers in the rest of the UK market. Key issues are identified and explored, interpreting the drivers behind trends and highlighting potential impacts. It first sets the macro-economic backdrop to the analysis, studying UK and credit industry economic trends, focusing on credit appetite, delinquency levels, personal bankruptcy and debt servicing ratios.
Forecasting determines the likely future position of both your portfolios and the general markets trends. By drilling down into consumer segments, Experian Decision Analytics’ models and expertise are used to build profiles forecasting risk concentrations and segments vulnerable to indebtedness. This gives an insight into how current strategies may affect your business in terms of:
- Future levels of delinquency extrapolated from vintage analysis
- Forecast write-off and bad debt levels, using roll-rate and cure rate analysis
Credit Strategy Setting takes the benchmark reports and forecast performance and compares each of your portfolios against the rest of the market, identifying variations from industry norms and influencing factors. By overlaying forecasts to predict the impact of past strategies our consultants work in partnership with you to uncover opportunities for changes in performance and develop the optimal actions and strategies on-going to meet your business objectives.