Optimize Portfolio

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MANAGEMaximizing portfolio value and profitability


How does this impact customer management strategies?

Monitor and analyze performance across the portfolio and key segments including capital consumption, liquidity, requirements and economic profit

INCREASE PORTFOLIO VALUE

Optimize capital usage lending to lower risk customers and reduce limits on under utilizers, while continuously improving provisioning

Enhance governance procedures and continuous monitoring of portfolio performance and stability

ENSURE COMPLIANCE AND REDUCE REGULATORY RISK

Leverage data and analytics to generate increased take rates and expand relationships

MAXIMIZE REVENUE WITH HIGH VALUE CUSTOMERS

Proactively retain high potential customers and monitor needs and channels for increased utilization

ENHANCE CUSTOMER SATISFACTION

Identify self-cure customers; rehabilitate potentially good customers; work out broken customer relationships

REDUCE BAD DEBT


Intelligent portfolio management strategies that uncover profitable opportunities within your existing portfolio while efficiently managing risk and potential losses.

HOW CAN WE TAKE ADVANTAGE OF

OPPORTUNITIES WITHOUT ADDING RISK?

WHAT ORGANIC GROWTH OPPORTUNITIES ARE IN OUR PORTFOLIO?

ARE WE CONSISTENTLY MANAGING BAD DEBT?

WHAT MITIGATION STRATEGIES DO WE NEED

TO LIMIT LOSSES?

ARE PORTFOLIO MANAGERS SPENDING TIME

ON THE RIGHT ISSUES?

DECISIONING PLATFORM

Are you maximizing your portfolio’s potential?

DO WE HAVE A COMPLETE VIEW OF OUR PORTFOLIO?


Marketswitch Optimization®

How it works

MARKETSWITCH OPTIMIZATION®

Decision software based on patented mathematical and constraint-based optimization technology that enables organizations to identify the best consumer level decision for complex business problems across the Customer Life Cycle.

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Groups customers according to similar traits

Create macro segments data profile

PROFILING

Rank order customers on a single behavior

Creates broad segments, e.g. good / bad odds

PREDICTIVE SCORING

Matrixes two or three predictive model dimensions

Refined segmentation based on “subjective” trade-off arbitration

BUSINESS RULES

Considers all defined key business metrics

Creates optimal, personalized, customer decisions maximize organizational objective

OPTIMIZATION


Marketswitch OptimizationUnique differentiators

Constraint-based optimization is the key

At it’s core, it is an allocation process which delivers TRULY OPTIMAL DECISIONS based on strict mathematical analysis, by BALANCING MULTIPLE DECISION VARIABLES within the limits established by the constraints

MATHEMATICAL, CONSTRAINED OPTIMIZATION is a specialized approach derived from operations research

Constrained optimization significantly outperforms current best practice approaches by EVALUATING THE ENTIRE SET OF ACTIONS/OFFERS SIMUTANEOUSLY rather than one at a time

Constraint-based optimization is the key


Marketswitch OptimizationUnique differentiators

Offer “A”

Offer “B”

Offer “C”

Offer “D”

Offer “E”

Offer “F”

Mon 5/5

Wed 5/7

Tue 5/13

Mon 6/2

Fri 6/6

Phone

Mail

Internet

Face-to-face

Wireless

Solves for multi-dimensional problems given typical business constraints ─ multiple decisions applied to individual consumer

T Y P I C A L C O N S T R A I N T S

• Lifestyle needs• Contact rules• Competition

• Maximum mail volume

• Inbound capacity• Contact history

• Product profitability• ROI hurdles• Sales targets

• Resource capacity• Budgets• Events

Internet

Face-to-face

Wireless

CUSTOMERSThousands/Millions

CHANNELSMultiple

OFFERSHundreds

TIMINGAny day/time


Decrease losses with early intervention

O P T I M I Z E C O L L E C T I O N S & R E C O V E R Y

H O W W E H E L P Early warning using proactive risk

assessment and monitoring Automate account handling and

treatment strategies Pre-delinquent treatments, in-

collections actions and treatments Consistent, timely and relevant

customer messaging

V A L U E D E L I V E R E D Optimized resource productivity

and effectiveness Fewer and faster recoveries Reduction in operational costs Increased cash flow Higher customer satisfaction and

retention

PREMIER ATTRIBUTESSM

TALLYMAN™

CUSTOM BUSINESS INTELLIGENCE

& ANALYTICS


Custom Business IntelligenceHow it works

• Ability to contrast an organization with the overall market and specific competitor groups

• Unique data perspective that incorporates the use of both credit and demographic information

• Contrast new versus existing customers

• Trend analysis over time

• Profile customers versus prospects

• Analytically derived conclusions

CUSTOM BUSINESS

INTELLIGENCE

A customized, comprehensive, consultative offering that allows Experian Decision Sciences to partner with your organization to better understand your customer base.

C U S T O M I Z E D S O L U T I O N S


Custom Business IntelligenceMarket assessment analysis

MARKET SHARE What percentage of the market does my organization represent?

PROFILING What is the credit and demographic profile of my customer base?

DELINQUENCY How does my customer base perform in terms of delinquency measures?

PRODUCT MIXWhat types of products does my customer base have with other lenders based on the credit line?

CROSS-SELL How many of my customers have multiple products and what are these products?

DEBT MOVEMENT How many of my customers have atrophied and to where?

PRODUCT PRICING What is the average rate, loan terms, etc. of my customer base?


Premier AttributesSM How it works

The credit industry’s most robust, accurate and comprehensive set of tri-bureau leveled attributes, enabling organizations to make more strategic and data-driven decisions across the Customer Life Cycle.

PREMIER ATTRIBUTESSM

Premier Attributes are analytically derived metrics that capture granular consumer views, leading to greater decisioning precision


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Optimize Portfolio