Case Study: KPN
Business Challenge
The risk team at KPN faced the challenge of trying to achieve the growth objectives with a registration decisioning process which was being stretched beyond its capacity and capability by the growth the business had seen. The process used many manual elements and could only implement a single registration strategy that was applied to all applicants. The risk team had little control over the decision-making process with a long lead time and high IT costs to make changes.
The Decision Analytics answer
KPN knew Experian as a trusted European-wide supplier with a good reputation and strong customer base in the Netherlands. It recognised that Experian’s leading application processing and decisioning system, Transact SM, offered the functionality and flexibility it required, as well as the technical capability to integrate with the complex operational environment.
The Benefits
- Stable accept rate with a bad debt decrease of 5%
- Reduced manual processing by 90%
- Reduced referral rate by 95% with underwriters only dealing with the most complex cases
- Reduced data costs by 15% with a smart data retrieval strategy
- Centralised control of the lending strategy with the risk team able to make rapid changes
The Credit Risk Manager at KPN commented, “The impact of the Transact SM system has been significant. We have seen the immediate benefits of removing 90% of the manual processes and reducing the data costs by 15%, but we know that the strategic control and flexibility the system gives us is where we will see the biggest impact for many years to come. Experian has delivered a system that exceeds our expectations and will enable us to grow and improve profitability across the business.”