Although not a new concept, very few lending organisations have deployed a true multi-bureau strategy (MBS). It is however talked about fairly regularly, but often dismissed as “too hard” or “not important enough”. So why should you consider a multi-bureau strategy? What are the key considerations? How do you go about deploying a MBS? This blog hopes to address all these questions.
A scorecard is a mathematical model that is used to predict a certain outcome. In credit this might be the probability of default. The information used in a scorecard can vary, but common fields include demographic characteristics (e.g. age of applicant, number of dependants, time spent in current job) and credit bureau data (e.g. number of personal loans registered to applicant, worst arrears status on all accounts in the last 6 months).
With the large drive in account origination towards digitisation and automation, in our experience much focus has been on bedding down omni-channel capability. But the real unsung hero of an originations’ project is the API hub. In this blog I unpack API hubs and APIs available in originations.
In part 1 of this 2 part series, we looked at the available tools in working accounts optimally as well as tools available in connecting and engaging with the customer.
We all know the importance of technology within the call centre … or do we?
The time is NOW for model validation and adjustment.
One of the major premises used in credit scoring is that “the future is like the past”. It’s usually a rational assumption and gives us a reasonable platform on which to build scorecards whether they be application scorecards, behavioural scores, collection scores or financial models. That is reasonable until something unprecedented comes along. You can read about this black swan event in our previous two blogs here and here.
Payment holidays have been used throughout South Africa and around the world to help alleviate the economic stress during the COVID-19 lockdown. In this blog we look at some of the steps taken internationally and by some of South Africa’s major lenders (specifically in the consumer space).
If 2020 was not hit by the COVID-19 global pandemic, many were touting 2020 as the year of alternative data. In the credit assessment world, data has typically incorporated demographic data and credit bureau data (where available), but now we are seeing alternative data playing more of a role namely in cellular behavioral data and psychometrics.
Principa specialises in providing data driven solutions that will optimise your business’ collections strategy, improve your recovery yields, and increase your business revenue.