Retail & Specialised Lending Sector
For over 22 years, Principa has been helping retail and specialised lenders with credit solutions across the customer lifecycle
We pride ourselves in our ability to offer a full-service solution.
Starting out with consultants that advise on applicable risk strategies, software solutions that operationalise the strategies and finally a comprehensive suite of analytical solutions and execution capabilities, all of which combine to provide your business with leading edge solutions.
Principa credit solutions span across the entire customer lifecycle and are tailored to meet the demands of specific areas in the lifecycle or to provide end to end lifecycle solutions for those companies starting out on the credit journey.
Customer Acquisition Solutions
Principa offers a variety of services to the retail industry to drive new acquisitions. Our Genius Leads solution provide our customers with high quality, opted – in leads that have been profiled and optimised to provide our customers with returns that both improve uptake and most importantly improve risk of future payment. For those customers with existing leads, we provide analytical services to improve response, uptake and risk through our bespoke data sources and machine learning algorithms, again with the goal of improving both response and risk.
We are also able to offer various channels to support your leads campaigns which include SMS, email and more recently Chatbot Ai.
While the abovementioned are all standalone products, our solutions combine a number of these offerings based on specific customer requirements.
Customer Origination Solutions
Principa’s origination solutions incorporate an account originations system that allows for the onboarding of new retail credit customers. Principa’s decision engine, DecisionSmart, enables complex automatic decisioning utilising scorecards, policy rules and terms of business tables amongst other features. Principa’s API hub, BridgeSmart, enables connectivity to webservices both internal to the organisation and external.
Principa’s analytics team for over 20 years have built credit strategies for retailers. This includes credit scorecards, policy rules, affordability calculations and profit-based credit limit setting amongst others.
Principa with Astra Constantine offer psychometric scoring, enabling accurate scoring for, in particular, the credit unaware population and for marginal credit applicants.
Principa’s advisory team has worked alongside most of South Africa’s retailers to create risk and profit-based lending strategies for each key customer segment whilst ensuring the strategy meets all regulatory and governance requirements.
Account Management Solutions
Principa’s account processing system Financier offers retailers an exceptional platform for managing retail credit. Financier has been deployed at a number of global high street stores offering simple and complex retail products.
Principa’s DecisionSmart enables retailers to deploy account management strategies including authorisations, credit limit management, existing customer marketing, predelinquency and collections. DecisionSmart also houses the behavioural scorecards enabling the business to benefit from the foresight gained from the customers purchasing and payment behaviour.
Principa have extensive experience with assisting our retail clients build and manage account management strategies either using profit and risk-based strategy designs or using mathematical optimisation techniques. We are authorities on both credit behavioural data and credit bureau data and for more than 20 years have built countless account management strategies. We also assist in building and managing champion/challenger strategies including the important task of running “randomisation” which incorporates ensuring that champion and challenger groups are similar across all key metrics.
A key challenge for many lenders is to harness customer and transactional data to bring about insight and produce foresight. Principa’s data management platform (DMP) allows lenders to clean data, link the data and then aggregate it from a range of sources. This data is then ready for behavioural scoring or for reporting within a dashboard
Principa’s collections solutions starts with our popular collection management system CollectSmart.
We also offer other software such as our collection’s virtual assistant Agent-X and our self-service collection bot, Atura. As collections becomes more sophisticated so we see many of our customers introducing a large suite of machine learning scores into the collection environment. This includes, probability of default, probability of breaking a promise, probability of RPC, probability of connect, right time to call, escalate to legal, optimal settlement, optimal instalment, etc. Principa’s machine learning platform Stratus enables the deployment and execution of these models supercharging a retail collection strategy.
Another service offered by Principa is our collections current state assessment (CSA). Here we assess all aspects of the collection environment from software, strategy, people, process, analytics and reporting giving you a road map to improve your collections environment.
Industry Benchmarking Reports
A highlight of our services offering is our retail industry benchmarking report, Credit Compass. Here we measure the retailers against each other to determine how they are performing across originations, account management and collections incorporating both behavioural data and bureau data. Retailers can assess whether trends they are experiencing are in line with industry or not, thus providing a unique perspective on the credit book’s performance. This report is important to our clients and has even featured in multiple annual reports.
IFRS9 Modelling Solutions
Principa has assisted and continues to assist a number of retailers in building and managing their IFRS9 provision models. Our services range from model building (including PD, LGW, run-off triangles and economic models), model review, IFRS9 mentorship and audit support. For more information visit our IFRS9 page.