Vision 2014: Have You Had a Credit Decisioning Tune-up Lately
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Transcript of Vision 2014: Have You Had a Credit Decisioning Tune-up Lately
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Have you had a credit decisioning tune up lately?
Barry Timm Experian
#vision2014
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I love my job!
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There has been a significant business shift in client engagements
Ten years ago – 90% were new client implementations
Past three years – 50% of engagements are “configuration tune ups”
Why even talk about a “tune up”
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Poor gas mileage
Not running on all cylinders
Engine “noise”
Blowing smoke
Need a tune up because of…?
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Client comments
“There has been a significant turnover of senior management and / or power users”
“We are not utilizing the available functionality to maximum potential”
“No changes have been made to the system since it was purchased”
“Repetitive re-keying of data occurs throughout the entire process”
“Policy changes and procedures need to be updated in the solution”
“We need to gain greater underwriting and processing efficiencies to support increased volumes and remain competitive”
“The processes need to be reviewed and updated to support true automated decisioning”
You might need a tune up if…
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Configuration tune up
What is it?
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1. Initial call to understand client needs and objectives
2. Pre-site review of client configurations to include:
► Products, workflows, CPM’s and pricing
► Queue management
► Development of evaluation cutoff review analysis/report
3. One or two day on site visit
► Dedicated time commitment
► Inclusion of “key players”
4. Identification and capture of:
► Configuration changes
► Add-on opportunities
5. Action item report
Configuration tune up
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Configuration tune up
Sample overview findings
Application volume by product and total
Scorecard and current gray area strategy
Summary of add-ons
Workflow and queue management
Credit policies
Pricing tables
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Sample evaluation cutoff results
Configuration tune up
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Configuration tune up
Sample evaluation cutoff results
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Configuration tune up
Bank2Business® credit policy violations on approvals– all products
Violations on approvals Count Percent
of total
Recommendations
Total exposure greater
than $50,000 112 16%
Assess whether this is a true policy violation
or whether it should be demoted to a warning
Company has been in
business for a short time 53 8%
Bankruptcy indicated on
the business report 2 0%
Delinquent taxes rule 3 0%
Principal has a
bankruptcy 4 1%
Principal has bankruptcy
on credit report 5 1%
Principal online CB score
is missing 1 0%
Note: The count reflects total number of CPV but is not on a per product basis. Using the number to calculate CPVs per product or per application will give an
overstated result. Percent of total refers to the percent of total approvals in Figure 1.1.
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Configuration tune up
Why consider
having a tune up?
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Gain overall efficiencies (improve MPG)
Achieve consistencies in the underwriting process (smooth operation)
Enhance turnaround times and client experience (reduce in engine noise)
Configuration tune up
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Progress is impossible without
change, and those who cannot
change their minds cannot
change anything
“ ” – George Bernard Shaw
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…I really do love my job
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Q&A
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For additional information, please contact:
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in the Daily Roundup:
www.experian.com/vision/blog
@ExperianVision | #vision2014
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