FICO™ Quick Start Optimization for Early-Stage Collections
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FICO™ Quick Start Optimization for Early-Stage Collections

Reduce losses and improve profitability using FICO optimization, with a Quick Start approach that brings you the benefits in a matter of weeks. Now you can use analytics to determine the ideal treatment strategy for early-stage collection accounts, to reduce roll rates without increasing your collections staff.
Key Benefits
  • Improve roll rates while balancing capacity / collections expenses.
  • Simulate strategy impacts before deployment, by predicting how delinquent customers will react to a wide range of collections treatments.
  • Update strategies more easily based on changes in your portfolio mix and environmental shifts, by using a systematic framework for managing collections strategies.
  • Create and implement optimized strategies faster — in just half the time needed for a standard optimization project.
Features
  • Decision model that quantifies the impact of your decisions and actions on customer outcomes such as revenue, loss and profit. These collection action/reaction relationships can be defined both by empirical testing and the deep industry experience of our seasoned collections managers and consultants.
  • An initial optimized strategy based on chosen scenario for early-stage collections treatments. By calculating the impact of multiple “what if” scenarios, our optimization enables you to determine the trade-off between business goals and constraints, such as charge-off losses and collection resources. Charting the impact of these multiple scenarios creates an efficient frontier that depicts the average charge-off amount per first cycle delinquent account as collection capacity is increased or decreased.
  • Detailed optimization reports that show you the potential profit improvement under different capacity and cost constrained scenarios; key business metrics for optimized scenario and comparison to current strategy; action distributions that show what specific collection treatments you would take with the optimized scenario; and a swap set report showing differences in actions and targeting between your current strategy and optimized strategy.
  • Optional: A pre-configured application that has optimization software with a custom decision model embedded, which your team can use to explore optimal operating points and create new strategies

FICO research shows that optimization could:

  • Reduce losses by $2.4 million per year per million accounts in a portfolio
  • Decrease the 1-2 cycle delinquent roll rate by 130 basis points
  • Cut 1st cycle delinquent dollars rolling to charge-off by 30 basis points
  • Accomplish all this while maintaining the same collector staffing level

Reduce Losses Within Your Collections Capacity Constraints

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Fair Isaac’s Quick Start approach for early-stage collections optimization can take you to the “efficient frontier” by balancing charge-off losses and collections capacity.

 

Speak with a Fair Isaac representative about our solutions and your business needs by calling us:

US (toll free): +1 888 342 6336
International: +44 (0) 207 940 8718

Or email us using the form on this page. We look forward to speaking with you.

 

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