Leveraging analytics to control credit risk & exposure: capitalizing on opportunities while mitigating risk
Looking to proactively manage credit risk and exposure for the consumer segment at various points across the customer lifecycle while maintaining a customer-centric approach, du, with the help of CRIF, turns to data, analytics, and consultancy to revamp its credit management policy, re-engineer its early-stage collection strategy, and introduce scorecards.
- CLIENT: du, the second largest telecom provider in the United Arab Emirates.
- NEEDS: Improve the customer experience; retain good customers; control customer exposure; identify customers at risk of pre-delinquency; reduce rollover of customers into collection; maximize cash flows and revenues; reduce collection costs; and optimize early stage collection strategies.
- SOLUTIONS:CRIF's consulting and predictive analytics teams provided statistical credit scorecards for onboarding and customer management, and detailed policy strategies for credit limit management and early stage collection.
- RESULTS: 30% increase in on-time payments; 22% decrease in 30-day past due accounts and balance roll rates; and an increase in collection revenue (6% of 45-day collection portfolio).
With the recognition of the power of underutilized data, players in the region are looking to leverage their data repositories along with external data to build scoring models to have a 360 degree perspective of their customers covering the entire customer lifecycle.