"The executive has asked me to provide a report on our overall portfolio performance. The information is to be used as part of a credit pack for analyst briefings as part of the submission of our half-year results, but ....

Are the results I am seeing reflective of a change in our strategy? Or...

Do they illustrate macro-economic factors and overall market trends?"

These are common questions asked by portfolio and credit managers. Experian’s Market and Portfolio Insight provides a unique outside-in view of a client’s portfolio’s performance, enabling all levels of an organisation, from the senior executive down, to assess their market position, evaluate the impact of past strategies and identify future changes to help their organisation to stay ahead of its competitors.

The strategic insights that it offers includes: specific marketing and product campaign analysis, the impact of a new scorecard implementation, the effectiveness of a limit increase strategy and the relative performance of the collections operation.

The Market and Portfolio Insight service consists of a quarterly consultancy service consisting of three elements:

Benchmarking looks at a client’s portfolio positions in comparison to the rest of the UK market. It first sets the macro-economic backdrop to the analysis, studying UK economic trends, focusing on credit appetite, delinquency levels, personal bankruptcy and debt servicing ratios.

Each portfolio is then evaluated using a number of key measures, from customer acquisition, through customer management and collections to write-off and attrition.

Forecasting determines the likely future position of both a client’s portfolio and general market trends. By drilling down into consumer segments, Experian Decision Analytics’ models and expertise are used to build profiles forecasting risk concentrations and segments vulnerable to indebtedness.

Credit Strategy Setting uses the results from above to aid our consultants to uncover opportunities for changes in portfolio performance and develop the optimal actions and strategies on-going to meet a client’s business objectives.

The service is built upon reported bureau account information from CAIS* covering a minimum of 6 years of application vintages and monthly trends over the last 3 years. As the service utilises CAIS data, it is reliable and there are no additional requirements to provide monthly data extracts or reports.

A wide range of key measures and performance data provides comprehensive coverage whilst protecting the confidentiality and competitive position of every contributor, regulated by SCOR.

To supplement the standard offering, an advanced service provides a number of additional features: 

• A bespoke service, whereby reports, analysis, forecasting and consultancy are tailored to your specific requirements and needs, providing a flexible and unique solution.
• Analysis of Mosaic profiles and the prediction of relative default rates against the rest of the market.

A full service will shortly be available for UK credit cards and personal loans. UK Telecoms and Mortgages will follow towards the end of the year. Other portfolios are under consideration as well as extending the service outside of the UK.

Anthony Sumner - Principal Consultant, Experian Decision Analytics

*CAIS is Experian’s Credit Account Information Sharing database, which holds details of the balance and payment status of the vast majority of all credit accounts in the UK.

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