Can we get more information on what the values in the CA collections strategy table ie (RadS0, RadS1 etc) actually translate into in term of actions like in the tables for CC and PL?

In the CA Collections Strategy Table, the values "RadCS0", "RadCS1", "RadCS2" ... etc are simply system fields to flag which "Radio Button" has been selected.

For example, in the "Very Soft" CA Collections strategy, the 2nd Radio Button is selected, so 'CS0' is set to "N", 'CS1' is "Y", and 'CS2'-CS5' are "N"

What does “Simulation Data” mean ?

During the webinars, teams can use 'Simulation' in SDS to analyse the performance of each "node" of each tree. The performance measures that are displayed are the same as those shown in the "Tools" section of the Launch Presentation. This allows teams to find out which parts of their strategy is performing well (ie making more profit this month than last month) and which parts are performing badly. For the 2nd webinar, the data will reflect the position at Month 39; in the 1st webinar, data was only available at Month 36.

For example, if a team sees in performance reports that profit is reducing, SDS Simulation (in the webinar) will pick out which parts of each tree is causing the biggest reduction.

The data that is available in Simulation is the same as that used to produce the portfolio reports.

Please also explain what does mean - “The auditors were quite surprised at the small number of teams that implemented Champion/Challenger strategies” 

(Auditors Observations M40)

The most effective way for a team to find out whether one strategy change (eg Collections strategy or Limit strategy etc) is better than another is to implement a "Champion/Challenger trial", putting half the accounts through each strategy, and then 3 months later, monitoring which one produced a better result. The Auditors found that only a few teams had actually used this method.

Could you explain the split CC Utiln 80,100,120? And also could you explain the status Declined and Never Accepted in the characteristic "Account Status"?  

This split uses the characteristic "06CC PV.Balance to Limit pct", which represents the Current Credit Card Balance as a percentage of the Current Credit Card Credit Limit (the "utililsation" or "takeup" of the Credit Card Account). Accounts in the first interval ('lo - 80') have a Balance that is less than 80% of the Credit Limit (for example, Credit Limit £2000, Balance £1500)

All customers on the Database have a Current Account, and some customers may choose to apply for a Credit Card and/or Personal Loan. If a customer Applied for a Credit Card, but the Originations strategy declined the application, the Account Status for Credit Card would be set to "X". He/she still has a Current Account, so the Customer's record still appears on the Database. In this situation, there will appear a cost (in '08CC PD.Account Opening Costs') for processing the application. For Current Account Customers who do NOT apply for a Credit Card, the field "08CC PD.Account Status" is set to "Z" (Never Applied) [not "Never Accepted"]

When there is an increase in customer complaints, what financial driver does this impact?

Customer Service Costs; each complaint costs £5.

At the webinar will we be looking at tweaking the existing strategies or working on brand new strategies from scratch?

It is totally up to each team whether they want to build on what is in place already, or start afresh with a brand new strategy.

Is any actual data being distributed to help with the strategy development ?

1. No actual data will be distributed, but during the webinars, the teams will analyse the data (held with the SDS system) by looking at the driver’s PC screen.
2. NOTE : In preparation for the 1st webinar, teams can use the screen-prints from the Launch presentation to identify potential strategy problems & opportunities.
3. The screens that will be seen by the teams will be those that were described in the “Tools Available” part of the Launch presentation (showing Financial measures Last Month and This Month, broken down for each node of the tree).

After each webinar phase, the data will be updated based on the impact of the strategy that has been in place. This data will be available on the driver’s PC at the next webinar. NOTE : In preparation for the 1st webinar, teams can use the screen-prints from the Launch presentation to identify potential strategy problems & opportunities.

What time period does each webinar cover?

1. During the first webinar, teams will be analysing data as at the end of ‘Month 36’.
2. For the 2nd webinar, the data will have been ‘rolled forward’ (based on the strategies that are being used), and the data will be as at the end of ‘Month 39’.

Can you explain the weighting?

1. The weighting characteristic simply makes it look as though there are more accounts than there actually are.
2. In actual fact, there are only ~10,000 records that are used initially, but this would not be realistic for a Retail Bank, so each record in the dataset has been weighted up.
3. As explained, the weightings are different for different accounts, but the average weighting factor is ~9.5.

Can credit cards and personal loans be sold to existing current account holders? Can prospects apply for credit cards or personal loans?

Yes.

1. All customers have Current Accounts, but some may apply for a Credit Card and/or a Personal Loan. This may be following an offer that is made by the lender.
2. The offer to be made to a Current Account customer is set with the “CA Cross-Sell strategy” object. This allows the team to specify what (a) Credit Limit is to be offered on a Credit Card, and (b) Loan Value is to be offered on a Personal Loan. The interest to be offered can also be specified.
3. The strategy for this is shown on page 75 of the pdf document that showed the Launch Presentation.
4. The strategy table on page 92 shows how an offer can be made.
5. If a customer is invited to apply for both a Credit Card and Personal Loan, he/she will only apply for one of them.

Is a monthly customer management score predicting risk of default available?

Yes, a behavioural score is available for Credit Cards, Personal Loans and Current Accounts, as well as an overall Customer-Level score. However, teams will draw their own opinions on the effectiveness of each, (during the webinars with their Drivers.)The scores will not be effective at predicting risk if the strategies have been inappropriate.