Enhancing Collections Efficiency of Credit Cards
For a Large Asian Bank
CLIENT & PROBLEM STATEMENT
- A leading Asian bank sought to optimize its credit card collection process through advanced analytics and predictive modeling.
- The objective was to enhance efficiency and effectiveness at every step of the collections process, from early delinquency detection to successful debt recovery.
APPROACH
- We conducted comprehensive data extraction, excluding irrelevant information through a Waterfall process while ensuring the integrity of the dataset.
- We created M1 and M2 scenarios to capture different aspects of customer behavior and credit risk.
- We conducted Roll-rate analysis to categorize accounts as High, Medium, or Low Risk, providing a foundation for targeted collection strategies.
SOLUTION & OUTPUT
- Our solution enabled the bank to significantly improve its credit card collection efforts across all stages of the process.
- By leveraging predictive models, we identified customers at risk of delinquency early on, allowing the bank to intervene proactively and prevent further escalation.