Manage and Maximize Net Revenue

Manage and Maximize Net Revenue Randy Tabor Strategic Relationship Manager

Proposed agenda - Today's Credit Management Challenges - Portfolio Management Solutions - Portfolio Scoring - Portfolio Monitoring - Q&A

Charge-offs & Bankruptcies on the rise

Doing more with less ,[object Object],[object Object],Staff sizes are down Average staff size ,[object Object],[object Object],[object Object],Portfolio sizes are up Median portfolio size in millions

Why should I manage my portfolio? Maximize your net revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],Revenue from good accounts Loss from bad accounts Using account management to identify risks AND opportunities adds to the bottom line at both ends $ Net revenue

Managing your customer portfolio requires periodic analysis and constant monitoring ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Managing customers Portfolio analysis Account monitoring Account treatments ,[object Object],[object Object],[object Object],[object Object],[object Object],Credit profiles change frequently ,[object Object],[object Object],[object Object],[object Object]

Value of third party data Customers paying you current Customers paying you 90 days late Customers paying you 60 days late Customers paying you 30 days late Your portfolio Credit scores Low risk of future delinquency Medium risk of future delinquency High risk of future delinquency These appear to be good customers who will continue to pay on time Based on how your customers have paid others in the past What looks like a low risk customer has a high potential to become a future loss

Portfolio Management Solutions Portfolio Scoring Portfolio Monitor Batch process that applies a statistical risk score to each account in your customer portfolio and returns demographic, credit, and public record attributes System that continuously monitors your customer account portfolio for key derogatory events and delivers you warnings on your accounts Portfolio analysis software A variety of systems that can enable you to segment your customers, perform portfolio analysis, generate reports, view alerts and assign tasks

Portfolio management process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Portfolio Monitor warnings ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Analytical tool

Applications for Portfolio Scoring ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Portfolio Scoring Scoring impacts more than just the credit department ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Portfolio Scoring data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Account Advisor Desktop-based solution to analyze Portfolio Scoring data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Portfolio segmentation examples Some basic segmentation queries: DBT with you < 15 DBT overall > 45 Identifies hidden risk Score > 80.00 DBT with me > 45 DBT overall < 15 Identifies collection opportunities Score > 80.00 DBT with you < 15 Balance < $1000 Identifies up-sell/cross-sell candidates

Portfolio Monitor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

E-mail alert is sent whenever new warnings are reported

Warning detail report on BizApps

Myths vs. truths Myths Truths Credit manager or staff will lose jobs Scoring and monitoring enables credit managers and staff to focus on more strategic activities Scores cannot be trusted Validated scoring models have consistently outperformed subjective human decision-making Scoring and monitoring solutions are expensive Most companies that have implemented Portfolio Management solutions have a strong ROI There is a solution that fits your needs and budget

Manage and Maximize Net Revenue

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