Support for businesses through the application of targeted analytics, expert knowledge and a wealth of experience in retail finance, banking and consultancy.
Consultancy services are aimed at process optimization and cover all areas of the credit cycle for retail exposures. StatDec takes a data driven approach, qualifying findings and recommendations with robust data analysis.
Besides ad-hoc engagements, such as portfolios stress testing, expected loss estimation under scenarios and collections cost analysis, we have designed specific supporting frameworks for areas of increased importance.
Business Health Check- diagnostic analysis of performance trends within the business, highlighting areas of strength and concern throughout the full credit cycle.
New Business Review - reviewing the new business process from a pricing, risk and operational standpoint.
Portfolio Performance Review – past and extrapolated performance trends indicating the changes in the quality of exposures and decisions over time identifying strong and poor performing sectors.
Account Maintenance Review- reviewing the management of existing customers and the optimization of the account relationship through marketing, limit maintenance and customer service with both a risk and operational view..
Collections Review– collections has a pivotal position in both risk management and customer service. This review looks as efficiency and effectiveness of the collection process and strategies from early collections through to write-off.
Policy Alignment Diagnostic (PAD) – an assessment of credit policy structure and re-engineering based on data analysis for improved efficiency and monitoring.
Analyses the interrelationship between all individual components of the approval decision, both objective and subjective.
Quantifies the effectiveness of each individual criterion on the final decisions
Re-engineering to simplify the front-end, minimise manual intervention, streamline or eliminate conflicting and obsolete rules and to increase approval rates
PAD is especially relevant when introducing a new scorecard or scorecard cut-off but will be beneficial at any time.
Analysis of profitability should underlie the determination of most decisions within the credit cycle.
Break-Even Analysis - for the optimisation of the accept/reject decision in setting cut-offs. A business is profitable if profits from ‘good’ accounts exceed losses from ‘bad’ accounts and so when setting the cut-off knowing this ratio is vital.
Decision Cost-Effectiveness - in order to select, compare and measure the effectiveness of strategies in approval, account maintenance, marketing and collections the quantification of the costs and benefits of the decision allows decision optimisation.
Portfolio or Product Profitability - analysis of the lifecycle portfolio profitability allowing the setting of and measurement against performance targets through the cycle. For a portfolio revenue and losses are not constant over time; understanding the expected position at any point of time enhances decision making.
How many restructured clients never make a payment?
What % of restructures default again within 12 months?
Are restructures being restructured more than once? Why?
StatDec has designed a data driven framework for making better decisions when the restructuring question appears.
Based on experience from markets with high volume of restructuring programs, StatDec's framework allows a businesses to objectify, automate and optimize decisions on restructures.