PIC Solutions Scoring Services

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Scoring services offered by PIC Solutions, the largest established credit risk consultancy in Central Europe Middle East Africa (CEMEA) region.

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PIC Solutions Scoring Services

  1. 1. www.PICSolutions.com © Copyright PIC Solutions 2009 ABU DHABI OFFICE PIC Solutions International Postal Address P.O. Box 107580 Abu Dhabi United Arab Emirates Tel: +971 (0)2 627 7510 Fax: +971 (0)2 627 7510 CAPE TOWN HEAD OFFICE Postal Address P.O. Box 2455, Cape Town, 8000 South Africa Tel: +27 (0)21 680 6000 Fax: +27 (0)21 680-6003 DUBAI OFFICE PIC Solutions International Postal Address P.O. Box 502390 , Dubai Internet City, Dubai United Arab Emirates Tel: +971 (0)4 369 7624 Fax: +971 (0)4 369 7623 JOHANNESBURG OFFICE Postal Address P.O. Box 3350, Parklands, 2121 South Africa Tel: +27 (0)11 759 0300 Fax: +27 (0)11 880 0466 MANAMA OFFICE Postal Address P.O. Box 25461, 6th Floor, National Bank Tower, Manama Kingdom of Bahrain Tel: +973 1721 5564 Fax: +973 1721 5564 Email: Info@PICSolutions.com Web: www.PICSolutions.com 1 Scoring Services Presented by: National Data Consultant (Pvt.) Ltd. - NDC
  2. 2. www.PICSolutions.com © Copyright PIC Solutions 20092 PIC Solutions overview: Who we are  Largest established credit risk consultancy in Central Europe Middle East Africa (CEMEA) region  Offices in Cape Town, Dubai, Johannesburg, Manama and Nairobi  Over 120 professional staff; 150 companies in 30+ countries  Specialists  Turnkey solutions – Consulting / Analytics / Software  Emerging market specialists / developed market expertise  Long term ongoing relationships with clients Consulting •Best practice customer management covering entire life cycle •Product based consulting e.g. TRIAD, Debt Manager Predictive modeling •Scorecard development •Scorecard maintenance •Scorecard HealthChecks Analytics •Profitability models •Affordability models •Provisioning models •Score cutoff analysis •Portfolio MI •Scenario analysis •Risk-based pricing Software •Professional services •Project management •CreditSmart suite of credit systems •FICO Alliance Partner The Credit Academy •Specialist credit risk management seminars PIC Solutions Value Proposition
  3. 3. www.PICSolutions.com © Copyright PIC Solutions 20093 Scoring Services and the Credit Life Cycle Where credit decisions are to be made, scoring solutions empower the answers Marketing Originations Account Management Early Stage Collections Recovery Which customers do we target with which offers? Do we approve this credit application? Do we increase this customer’s credit limit? How do we cure this account effectively? How do we optimise the placement of accounts? Application Scorecards Response Scorecards Behaviour Risk Scorecards Collections Scorecards Recovery Late Stage Collections How do we recover the maximum outstanding balance? Payment Projection Scorecards
  4. 4. www.PICSolutions.com © Copyright PIC Solutions 2009 Account Origination Scoring  Provide objective and consistent results in line with business objectives and risk appetite  Automate Approve / Decline decisions on new accounts  Perform product type decisions - offer the right product to that risk profile of customer:  Pricing  Product term  Credit limit Provides the capability to maximise return whilst managing acceptance and bad debt rates 4
  5. 5. www.PICSolutions.com © Copyright PIC Solutions 2009 Account Management Scoring PIC Solutions’ behaviour scorecards have been used to manage:  Credit risk  Limit and authorisation management - maximise account profitability through limit and authorisations decisions  Repeat business decisions for term products  Marketing  Spend - make proactive offers to encourage spend  Attrition - prevent good customers from becoming dormant or leaving  Collections  Early stage collections – cure overdue accounts efficiently  Late stage collections – recover maximum outstanding balance  Recoveries – optimise account placement Account management scoring enables the right action to be taken at the right time 5
  6. 6. www.PICSolutions.com © Copyright PIC Solutions 2009 Sources of Scoring ROI A few of the sources of return on investment from PIC’s scoring solutions:  Improved ability to distinguish good accounts from bad accounts  Average improvement between 40-80%  Operational efficiency  Reduction in resource costs  Provide control to manage flow of new accounts  Reduction in bad debt  Positive knock-on effect throughout the life cycle  Increased profitability by controlling risk  Credit limit decisions  Authorisations strategies  Collections strategies 6 Project payback within 2 to 6 months 25-30% reduction in head count requirement 30% reduction in bad debt
  7. 7. www.PICSolutions.com © Copyright PIC Solutions 2009 Scorecard Development  Expert Scorecards built:  Based on experience and  Market understanding  Business requirements  No historical data used Ideal for new ventures  Custom Scorecards  Empirically based – built on historical data  Specific to the company  Developed for a specific portfolio Ideal where historical data exists Client Sign-off 1 Startup meeting 2 Data validation 3 Project Specification Meeting 4 Build Known Good Bad Model 6 Inference Process 7 Build All Good Bad Model 8 Delivery Meeting 9 Delivery Document Client Sign-off 5 Segmentation Meeting Client Sign-off Onsite Offsite Custom Applications Scorecard Development Process Client Sign-off 7
  8. 8. www.PICSolutions.com © Copyright PIC Solutions 2009 Scoring Services In addition to building models, PIC Solutions offers services to ensure clients gain greatest benefit from scoring:  Scorecard HealthChecks -Analysis of current scorecard performance and recommendations thereon  ScoreMentor - Training of in-house scoring departments  Scorecard Monitoring - Analytical support for building and interpreting scorecard reports  Scorecard Alignments - Maintaining predictive capability of behaviour scorecards 8
  9. 9. www.PICSolutions.com © Copyright PIC Solutions 20099 PIC Solutions Scoring Credentials  Largest and most experienced scoring team in EMEA  Domain expertise across 20 countries  Best practice scorecard development methodology  Models built on leading technology
  10. 10. www.PICSolutions.com © Copyright PIC Solutions 2009 Questions & Answers © Copyright PIC Solutions 2008 JOHANNESBURG OFFICE Office Address PIC Solutions 5th Floor, JHI House 11 Cradock Avenue, Rosebank Johannesburg, 2196 South Africa Postal Address P.O. Box 3350 Parklands 2121 South Africa Tel: +27 (0)11 759 0300 Fax: +27 (0)11 880 0466 DUBAI OFFICE Office Address PIC Solutions Shatha Tower 19th floor, Office No. 1910 Dubai Media City, Dubai UAE Postal Address P.O. Box 502390 Dubai Internet City Dubai United Arab Emirates Tel: +971 (0)4 369 7624 Fax: +971 (0)4 369 7623 NAIROBI OFFICE Office Address PIC Solutions Office 10, 13th Floor Landmark Plaza Argwings Kodhek Road Nairobi, Kenya Postal Address P.O. Box 8103 Nairobi 00200 Kenya Tel: +254 (0)20 367 3884 Fax: +254 (0)20 367 3232 Email: Info@PICSolutions.com Web: www.PICSolutions.com CAPE TOWN HEAD OFFICE Office Address PIC Solutions Birkdale I, River Park Liesbeek Parkway, Mowbray Cape Town, 7700 South Africa Postal Address P.O. Box 2455 Cape Town 8000 South Africa Tel: +27 (0)21 680 6000 Fax: +27 (0)21 680 6003 MANAMA OFFICE Office Address PIC Solutions 6th Floor National Bank Tower Manama Kingdom of Bahrain Postal Address P.O. Box 25461 6th Floor, National Bank Tower Manama Kingdom of Bahrain Tel: +973 1721 5564 Fax: +973 1721 5564 10www.PICSolutions.com © Copyright PIC Solutions 2009

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