Case Study: Hites
Business Challenge
With applications increasing by nearly 25% in 2006, Hites recognised that its existing application processing operation was being stretched and could not support its current and potential growth. With the planned opening of three new department stores, the retailer wanted to increase its origination capacity to accommodate the increase in applications and maintain a good risk profile in the portfolio by taking on the right customers with the right terms. Hites decided to invest in new technology and processes to achieve these objectives.
The Decision Analytics answer
Hites chose Experian to deliver its New Business SM system to manage origination decisioning across the organisation. The system automates and streamlines the process, consistently applying lending and risk policies to customers for an accurate decision before the credit is extended.
The Benefits
- Increased accept rate by up to 25% with more accurate risk assessment and decisions
- Reduced manual processing and operational costs with a fully automated streamlined application processing system
- Improved risk management significantly reducing losses to less than 0.6% of the portfolio value
- Enabling portfolio growth with applications up by 400% in 2007 compared to 2006
- Reduced bad debt provisioning by 14% with more accurate risk management
“Our ambitious expansion plans required the support of robust systems and processes to enable us to serve our customers quickly and with confidence. The New Business SM system from Experian has enabled us to take on more customers while managing our risk and losses. With a global company offering us the local support and market knowledge, we know we have a long-term partner in Experian.”