WHAT WE DO / SOLUTIONS BY FUNCTION
Risk Management
Account Management
MAXIMIZE PROFITABILITY WHILE MINIMIZING RISK
For consumer-focused businesses in such as retail lending, telecommunications, and utilities, the more relationships you establish with your most valued customers, the less inclined they will be to leave. The most critical aspect of managing customer relationships is encouraging the good customers to maintain and expand their relationships, while controlling, and if necessary, terminating the relationships with the bad customers. In turn, knowing when a relationship is heading south and applying the appropriate action will provide you greater control over your portfolio.
LatentView can help companies achieve their portfolio management objectives effectively through an analytics-driven adaptive control system, based on behavioral scores.
Develop / Refresh Models: LatentView can develop predictive models for a variety of purposes, including: estimating profitability, understanding creditworthiness, retaining customers, optimizing collections, or reducing fraud. These scores have great predictive power, since, in addition to demographic and credit bureau data, they utilize the customer’s relationship and behavioral data to predict their behavior.
Segmentation: The next step is to segment the accounts into various buckets for differentiated treatment. Key segments are identified, based on past knowledge of managers in marketing and risk management functions. Techniques such as decision trees or clustering can be used to identify key segments. Variables for key segments include demographic or behavioral characteristics obtained from internal transaction or attitudinal data.
Strategy Formulation: In products such as credit cards, LatentView can help managers responsible for strategy formulation make decisions involving over-limits, credit-limit, authorizations, reissues, and cross-sell offers. New strategies can be formulated based on a variety of factors in the account, such as past payment, average balance, response to offers, behavioral score, etc.
Implementation: The strategies are implemented on the respective segments.
Champion / Challenger Testing: LatentView can assist in testing the new strategies against their expected business objectives. The costs of these strategies are evaluated against their expected intended and unintended benefits. These strategies are tested in test and control groups, and their results are compared.
Model Validation: LatentView can help in monitoring and tracking to ensure that scorecard objectives are being met. Monitoring includes evaluating the divergence between development and test samples through characteristic analysis or population stability reports. Tracking involves identifying relationships between the scores and the portfolio performance characteristics, across different sub-segments of the population.
LatentView can help create, refresh, maintain, validate, monitor and stress test your behavioral scoring models. Through our best-in-class development methodologies and flexible engagement models, our team of knowledgeable consultants, statisticians and business analysts focus on your unique needs to craft custom solutions that deliver measurable results.
Talk to us today to maximize the return on your analytic investments!
Risk Management
Account ManagementMAXIMIZE PROFITABILITY WHILE MINIMIZING RISK
For consumer-focused businesses in such as retail lending, telecommunications, and utilities, the more relationships you establish with your most valued customers, the less inclined they will be to leave. The most critical aspect of managing customer relationships is encouraging the good customers to maintain and expand their relationships, while controlling, and if necessary, terminating the relationships with the bad customers. In turn, knowing when a relationship is heading south and applying the appropriate action will provide you greater control over your portfolio.
LatentView can help companies achieve their portfolio management objectives effectively through an analytics-driven adaptive control system, based on behavioral scores.
Develop / Refresh Models: LatentView can develop predictive models for a variety of purposes, including: estimating profitability, understanding creditworthiness, retaining customers, optimizing collections, or reducing fraud. These scores have great predictive power, since, in addition to demographic and credit bureau data, they utilize the customer’s relationship and behavioral data to predict their behavior.
Segmentation: The next step is to segment the accounts into various buckets for differentiated treatment. Key segments are identified, based on past knowledge of managers in marketing and risk management functions. Techniques such as decision trees or clustering can be used to identify key segments. Variables for key segments include demographic or behavioral characteristics obtained from internal transaction or attitudinal data.
Strategy Formulation: In products such as credit cards, LatentView can help managers responsible for strategy formulation make decisions involving over-limits, credit-limit, authorizations, reissues, and cross-sell offers. New strategies can be formulated based on a variety of factors in the account, such as past payment, average balance, response to offers, behavioral score, etc.
Implementation: The strategies are implemented on the respective segments.
Champion / Challenger Testing: LatentView can assist in testing the new strategies against their expected business objectives. The costs of these strategies are evaluated against their expected intended and unintended benefits. These strategies are tested in test and control groups, and their results are compared.
Model Validation: LatentView can help in monitoring and tracking to ensure that scorecard objectives are being met. Monitoring includes evaluating the divergence between development and test samples through characteristic analysis or population stability reports. Tracking involves identifying relationships between the scores and the portfolio performance characteristics, across different sub-segments of the population.
LatentView can help create, refresh, maintain, validate, monitor and stress test your behavioral scoring models. Through our best-in-class development methodologies and flexible engagement models, our team of knowledgeable consultants, statisticians and business analysts focus on your unique needs to craft custom solutions that deliver measurable results.
Talk to us today to maximize the return on your analytic investments!
