Best practices of today (through 2011) Overview

Best practices of today (through 2011) Overview

Over the next 12-18 months lender focus is on optimizing current processes, testing new data, and incorporating more robust analytics

Deposits are key to growth Stratify risk with recent behavior analysis Enhance market selection with ability to

pay assessments Cross-sell to support needed growth and

ease back into prospecting Target, target, target ? maximize

marketing spend by soliciting motivated consumers with messages that resonate Capitalize on nimbleness and speed

? 2009 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.

1

Best practices of today Seek profitable deposit customers

Opportunity: Grow deposits

Impact

Turmoil in today's market is intensifying the demand for profitable deposits ? lowers cost of funds and improves balance sheet

Winning banks will be those who employ distinctive programs that cost effectively target and capture attractive deposit customers

Case study:

Top-10 bank tested Financial

Personalities

Results: Projected response rate increased as did spend

The Financial Personalities response is more than double the next highest test cell

Average balance increased by $10,000

? 2009 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.

2

Best practices of today Time-series analysis of RECENT behavior

Opportunity:

Recent behavior analysis

Augment risk scores with attributes to assess risk

Impact

Better stratify risk based on recent behavior (3, 6, 9 months)

January to March 2007

Solution: Specialized attributes

24-months performance window

Types of attributes used

Benchmark model

Uni-variate analysis

11% 10%

58%

21%

Premier

Trend View Generic

Custom Credit Trends Line Decrease

High Score Low Score

? 2009 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.

3

Best practices of today Enhance market selection with ability to pay assessment

Opportunity: Added data

Impact

Solution: Estimated income model

Further refine marketable universe based on income assessment

Streamline marketing to maximize spend

FCRA and ECOA compliant Improve account acquisition by segmentation prospect universe by income amount

Comprehensive and efficient assessment of income

Developed based on verified income data and calculated exclusively on credit bureau attributes

Model does not include any demographic characteristics

Output is a point estimate of household income

Includes dollar amount of current obligations for modeled debt-toincome analysis

Best of breed accuracy based on validation sample

? 2009 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.

4

Best practices of today Cross-sell to grow account base

Business need: Increase card sales Instant decision at POS in branch Interface with FIS ProspectChex Needed quick (30-day)

implementation

Results: Approval rates:

Unsecured card = 29% Home Equity = 16% Acceptance rate = 19% initially Now = "higher" Year-over-year transactional growth

Opportunity: Cross-sell

Grow through expanding relationships with existing clients

Impact

Most lenders now are getting back into prospecting through cross-sell programs

The time is now to expand relationships with existing customers

Case Study:

Instant prescreen at point-of-sale

Large mid-west bank

1,100 full-service branches

Serving over 5.7 million customers

? 2009 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download