FICO® Placement Optimizer

Overview

Drive increased returns while providing greater visibility

Users are able to match each account to the optimal collections placement strategy. The solution removes the traditional random allocation of accounts to collections suppliers, and instead applies advanced analytics to optimize placement strategies. The result is placements with the best agencies, driving a 3% to 11% performance uplift while enabling you to maintain control of your placement strategy.

Leverages advanced analytics to measure and forecast agency performance
Recommends placement strategy of accounts to meet business objectives and policy restrictions
Enhanced visibility into the portfolio with Tableau-based dashboards and benchmarking

Strategic analysis defines placement strategy

Advanced analytics assigns charged-off accounts to a collection agency, attorney or placement channel that maximizes collection on specific account types.

Match accounts to the right placement strategy

Placement Optimizer uses a combination of predictive analytics and mathematical optimization, developed over years of experience, to produce placement decisions for each account.

Credit grantors maintain complete control

Maintain control through the deployment of a documented allocation process and a support–based engagement model.

Custom predictive models

Analytic tools use data from different sources, including creditor provided account data, collection agency activity data, pre-charge-off history and more to predict collection outcomes.

Statistics, Numbers & Data

See how FICO helps deliver real business results and better customer experiences for leading organizations across industries and around the world.

11%

11% increases in recoveries compared to traditional approaches

Maintain complete control of placement strategies by defining business constraints and making strategy modifications as needed.

Credit grantors maintain complete control of agencies and account placement strategies through the deployment of a documented allocation process and a support-based engagement model.

Placement Optimizer Solution is a purpose-built analytical service that combines four key components:

Custom predictive models enable performance benchmarking, the understanding of portfolio trends and the valuing of segments of the portfolio. Advanced analytic tools use large amounts of data from different sources, including creditor-provided account data, agency collection activity data, pre-charge-off collections history, credit bureau data and more to predict collections outcomes, including the Expected Collection Amount (ECA) score.

Credit grantors retain control of this placement strategy through the pre-agreed business constraints within the optimization engine, which are then updated monthly, along with the ability to override strategy recommendations to suit business needs.

Along with the ECA score, a combination of segmentation and mathematical optimization recommends segment-level agency allocation percentages that optimize business objectives.

Delivered using the Tableau infrastructure, the reporting suite provides accurate benchmark data along with enhanced visibility into portfolio performance and activity, which, when shared with agencies, becomes a powerful tool and pathway to increased recovery rates. These detailed dashboards become the basis for effective data-driven relationships with agencies while gauging performance against ECA targets.