Achieving growth initiatives with decisioning, data # ...€¦ · Achieving growth initiatives with...
Transcript of Achieving growth initiatives with decisioning, data # ...€¦ · Achieving growth initiatives with...
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Achieving growth
initiatives with
decisioning, data
and analytics
A BarclayCard case study
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Introducing:
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Brett Brandau Barclay’s
Craig Wilson Experian
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NEW
MARKETS
Just Do It!
Use the broad reach of Experian
capabilities to launch a new
product in a competitive
consumer lending environment
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Tri-bureau leveled attributes enabling best-in-class modeling and decisioning
Attribute Toolbox™ to aggregate data and calculate attributes
PowerCurve®
decisioning platform
Income models
Estimated interest calculator
PowerCurve® enabling customer level decisioning
Credit triggers
TrueTrace™ providing robust consumer linking across data to identify and locate customers
Agency allocation
Industry-leading Identity verification platform with single integration
Best-in-class consumer authentication capabilities
Covert fraud risk assessment of devices in digital channels
CIP and underwriting process efficiency
ConsumerViewSM providing robust targeting and segmentation
Audience selection and digital targeting and display capabilities
Cross channel marketing platform
Generic / custom scores
Experian has a full suite of capabilities
for driving new product launch
and sustained growth
Optimization | Regulatory compliance
4
Underwriting Account
management Fraud Marketing
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Industry leading data and attributes
Trended attributes
Total Annual Plastic Spend (Experian TAPSSM)
Estimated Interest Rate Calculation (EIRCSM)
Originations software
PowerCurve®
Industry expertise and consulting
Strategy design
Experian solution set
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Product needed to leverage internal
support and key suppliers to execute
Sizing the market (business intelligence)
Customer application process
Prospect targeting
Enterprise software (PowerCurve®)
Pricing
Disbursement
Leveraging a strategic partnership
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IntelliViewSM – market insights
Sizing volumes of originations and understanding seasonality
► Growth trends year over year
► 1Q volumes below other quarters
Initial market insights
Personal loan
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Innovative data
Taking insights into action
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A new view of the consumer
Payment behavior:
MIN PAY – 2% Annual card
spend:
$7,500
Avg month yield:
$ 74
Average effective APR
16.99%
In the market?
Bankcard
BT Index (0-999)
875 BTs in last 12
months
2
Revolving trades:
4
Transacting trades:
0
Risk Index rating:
Unstable
Utilization in last 6 months:
+ 35%
Credit card bals last 6 months:
+ $8,000
BEHAVIOR
RISK REVENUE
RESPONSE
Trended data allows Experian to reveal a comprehensive view of a consumer’s credit behavior to improve risk, response and profit…
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10
EIRC RevolvingSM
and Experian TAPSSM
New tools for interest paid and spend behavior
How much do your prospects spend? How much interest do they pay,
at what rate?
This detail is now available, providing segmentation that quickly reveals prospects who have the potential to deliver meaningful profitability
2012 <$75
Low
$75 – $500
Medium
>$500
High
<$5,000
Low
830 807 784
$883 $2,255 $2,519
$4 $238 $1,421
$5,000 –
$20,000
Medium
875 857 810
$11,159 $10,946 $10,823
$10 $234 $1,962
>$20,000
High
894 885 848
$51,158 $49,979 $61,180
$9 $246 $2,216
Interest paid on all cards1 C
ard
sp
en
d
Segment
average
VantageScore®
Experian TAPSSM
Interest paid
1 U.S. population distribution VantageScore® >700
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11
Revenue segment distribution
Over 30% of U.S. cardholders produce a little interest or interchange
revenue
Surprisingly, they receive almost as many prescreen offers as other prospects
2012 <$75
Low
$75 – $500
Medium
>$500
High
<$5,000
Low 32% 7% 6%
$5,000 –
$20,000
Medium
13% 8% 9%
>$20,000
High 12% 6% 7%
Interest paid on all cards1 C
ard
sp
en
d
32% of the U.S.
population are
generating limited
revolving interest
revenue or
interchange
revenue from
spend
1 U.S. population distribution VantageScore® >700
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Let data lead the analytics
Custom archives
Premier AttributesSM
Trended attributes
Performance tags
Market sizing
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Originations software
Integrating data and decisioning
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A better customer journey
Driven by confident customer decisions
Decision
execution
Data
access
Integrated
design studio
Unified
platform
Monitoring
and reporting
Modular
framework
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Data / input
(Credit and non-credit data)
Experian Decision Analytics
Technology overview
PowerCurve® platform
Design environment (Studio)
Operational environment (Run time)
Strategy monitoring and reporting
Lifecycle production
Originations Customer
management Debt
Management
Fraud and identity
Shared systems
Data connectivity and enrichment
Strategy ManagementSM
Marketswitch Optimization®
Analytics
(Model development)
Clien
t syste
ms
Request
(Call-in)
Response
(Decision)
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Strategic support
Business intelligence and strategy design
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Experian consulting services approach
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Business intelligence is a customized, comprehensive, consultative offering that allows Experian Decision Sciences to partner with your organization to better understand your customer base
Custom business intelligence
Overview
Ability to contrast an organization to the overall market and specific competitor groups
Unique data perspective that incorporates the use of both credit and demographic information
Contrast new vs. existing customers
Trend analysis over time
Profile customers versus prospects
Analytically derived conclusions
Customized solutions
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Background
Barclays engaged Experian to assist in their venture
into the unsecured personal installment loan market
Analysis and
reporting
24 and 36-month performance periods were analyzed, and reports were created to return to Barclays
Consolidators and
non-consolidators
Based on the difference from month 0 to month 3, consolidators and non-consolidators were identified
Overview of the
entire market
Initial review of the entire personal loan market
Unsecured personal
loan definition
Unsecured personal installment loans were defined using agreed upon enhanced type codes from Experian’s business intelligence definition of an unsecured personal loan
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Strategy design
Methodology
Assess current champion
or challenger strategy
Review 2 Develop new
challenger strategies
Design 3
Ensure operational
deployment
Implement 4
Track performance
against expectations
Monitor 5 Understand results of
strategy performance
Assess 6
Define strategy,
objectives and goals
Plan 1
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Fraud strategy uses many layers of control
PowerCurve® – credit policy
Enterprise negative files Phase 1
Precise ID® – account opening score
Fraud ShieldSM indicators Phase 2
FraudNet – digital risk mitigation and enhancements for open market growth
Phase 3
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Recommendations
Fraud review applications according to red refer cells
Pass fraud review for applications according to green and yellow accept cells
Fraud ShieldSM match codes provide additional controls
Waterfall through BCUS negative file
Review all applications high dollar exposure
Managing fraud risk exposure
Volumes
Performance
Score band
Total
Volume
Fraud
Volume
413-427
Total
Population
Fraud
Population
Score band
Total
Volume
Fraud
Volume
379-412
Total
Population
Fraud
Population
Score band
Total
Volume
Fraud
Volume
369-378
Total
Population
Fraud
Population
Score band
Total
Volume
Fraud
Volume
345-368
Total
Population
Fraud
Population
Score band
Total
Volume
Fraud
Volume
272-344
Total
Population
Fraud
Population
Score band
Total
Volume
Fraud
Volume
0-271
Total
Population
Fraud
Population
Loan Amt
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#vision2016
Many banks are looking for new opportunities
for growth and launching new products is a way to grow loans and acquire new customers
The personal loan market is a dynamic
marketplace opportunity for growing loans and acquiring new customers
Take advantage of strategic partnerships with industry and industry leader in data, software and analytics to execute your growth initiatives
Achieve growth!
The personal loan market has continued to evolve with new market participants
and a changing consumer preferences. Experian can help you develop a go to
market strategy and implement new capabilities to achieve success.
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For additional information,
please contact:
@ExperianVision | #vision2016
Follow us on Twitter:
#vision2016 [email protected]
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