Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

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Periodic and ongoing review of decisioning data to include approval and decline rates, scoring trends, overrides and policy violations is critical to maintaining a healthy portfolio. Don’t have an “uh-oh” moment due to unforeseen/preventable occurrences. Time goes by quickly. Without routine tune-ups, your small-business or consumer-lending race car can sputter and stall.

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Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

  1. 1. ©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Have you had a credit decisioning tune up lately? Barry Timm Experian #vision2014
  2. 2. 2©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. I love my job!
  3. 3. 3©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. There has been a significant business shift in client engagements  Ten years ago – 90% were new client implementations  Past three years – 50% of engagements are “configuration tune ups” Why even talk about a “tune up”
  4. 4. 4©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Poor gas mileage  Not running on all cylinders  Engine “noise”  Blowing smoke Need a tune up because of…?
  5. 5. 5©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Client comments  “There has been a significant turnover of senior management and / or power users”  “We are not utilizing the available functionality to maximum potential”  “No changes have been made to the system since it was purchased”  “Repetitive re-keying of data occurs throughout the entire process”  “Policy changes and procedures need to be updated in the solution”  “We need to gain greater underwriting and processing efficiencies to support increased volumes and remain competitive”  “The processes need to be reviewed and updated to support true automated decisioning” You might need a tune up if…
  6. 6. 6©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Configuration tune up What is it?
  7. 7. 7©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. 1. Initial call to understand client needs and objectives 2. Pre-site review of client configurations to include: ► Products, workflows, CPM’s and pricing ► Queue management ► Development of evaluation cutoff review analysis/report 3. One or two day on site visit ► Dedicated time commitment ► Inclusion of “key players” 4. Identification and capture of: ► Configuration changes ► Add-on opportunities 5. Action item report Configuration tune up
  8. 8. 8©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Configuration tune up Sample overview findings  Application volume by product and total  Scorecard and current gray area strategy  Summary of add-ons  Workflow and queue management  Credit policies  Pricing tables
  9. 9. 9©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Sample evaluation cutoff results Configuration tune up
  10. 10. 10©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Configuration tune up Sample evaluation cutoff results
  11. 11. 11©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Configuration tune up Bank2Business® credit policy violations on approvals– all products Violations on approvals Count Percent of total Recommendations Total exposure greater than $50,000 112 16% Assess whether this is a true policy violation or whether it should be demoted to a warning Company has been in business for a short time 53 8% Bankruptcy indicated on the business report 2 0% Delinquent taxes rule 3 0% Principal has a bankruptcy 4 1% Principal has bankruptcy on credit report 5 1% Principal online CB score is missing 1 0% Note: The count reflects total number of CPV but is not on a per product basis. Using the number to calculate CPVs per product or per application will give an overstated result. Percent of total refers to the percent of total approvals in Figure 1.1.
  12. 12. 12©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Configuration tune up Why consider having a tune up?
  13. 13. 13©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Gain overall efficiencies (improve MPG)  Achieve consistencies in the underwriting process (smooth operation)  Enhance turnaround times and client experience (reduce in engine noise) Configuration tune up
  14. 14. 14©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Progress is impossible without change, and those who cannot change their minds cannot change anything “ ”– George Bernard Shaw
  15. 15. 15©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. …I really do love my job
  16. 16. 16©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Q&A
  17. 17. 17©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. For additional information, please contact: Barry.Timm@experian.com Hear the latest from Vision 2014 in the Daily Roundup: www.experian.com/vision/blog @ExperianVision | #vision2014 Follow us on Twitter
  18. 18. 18©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Visit the Experian Expert Bar to learn more about the topics and products covered in this presentation.

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