Experian Decision Analytics: Navigating uncertain times

The COVID-19 pandemic has created a period of uncertainty for individuals and businesses. Experian appreciates that our clients and their customers may be significantly impacted by this pandemic, requiring rapid response to the challenges. We are here to support our partners wherever possible.

Experian’s solutions are designed to be flexible to respond to the rapidly changing situation. Our consulting team is available to help you, whether it’s to respond in real time to client requests, make policy changes, trigger disaster response strategies or enable general customer communication messages.

Below are the Experian solutions that you might be using to meet your credit lifecycle requirements, with suggestions from our experts on how you could navigate the current challenges your business might be facing right now.

Originations

With the significant changes in banking to support customers through the COVID 19 crisis, updating Originations decisioning systems will likely be required.

Time to decision

Automation of manual checks to speed up time to decision.

Introduce new data for segmentation

Incorporate additional data attributes to help enhance segmentation for risk or application prioritisation purposes.

Update policy and pricing

Update policy that aligns to the new economic climate and offer customers new products/terms.

Debt consolidation

Enabling debt consolidations campaigns and strategies may be able to release some debt pressure on customers..

Refinancing

Help customers quickly refinance their existing products to a term and structure that works for them, helping them manage their ongoing repayments.

Customer Management

The lenders who take steps to proactively monitor customers across all product holdings, to effectively identify at risk borrowers well ahead of any payment default events, will be better equipped to support customers and manage operationally through this period.

Look out for early warning signs across all portfolios

Monitor customers across all product lines to spot early indications of stress. Customers drawing credit limits down outside of their normal behaviour is a sign of stress such as a lost job. For credit cards – look for cash advance activity outside the range of normal behaviour for card holders. Look for reductions in total monthly credits (which could indicate reduced hours or lost employment) and increased usage of any overdraft facilities.

Automate event-based triggers to take immediate action

With high risk of demand on operational teams, leveraging our solution to automate decisions based on incoming data quickly and efficiently would enable teams to identify early indications of stress or vulnerability without suffering the manual overheads to do so.

Collections

We have already seen a down-turn in the job market, with a number of job sectors impacted as a direct result of COVID-19. This will impact Collections volumes and introduce the need for new options to manage the situation effectively.

General communication SMS

SMS: “ is closely monitoring the COVID-19 situation and would like to offer our customers all the support they need at this time…”

Disaster Response strategy

Leveraging our Disaster Response strategy would be an effective response. This would effectively pause regular collections strategies and enable a COVID-19 message to be sent directly to Collections customers offering help.

Optimised Hardship solution

Ensure your Hardship program is capable of catering for the increase in volume and provide Hardship solutions that match the severity of the crisis being faced by customers.

Moderating Default Listing and Asset Realisation

In line with supporting customer in difficult times, it may be a time to reconsider Collections treatment options. Default Listing and Asset Realisation can cause significant additional stress amidst these difficult times.

Inbound and outbound communications

Call centre capacity may be reduced, impacting dialler strategies as well as inbound operations if not managed.

• Reduce dialler volume by changing dialler communications to IVR or another communication type where possible. If an alternate communication isn’t an option, it may be necessary to pause outbound dialler campaigns temporarily.
• Think about communications which prompt a self-serve response rather than an inbound call, such as 2way SMS, IVR & Virtual Assistant options.

Experian is here to help

If we can assist you in any way in these unprecedented times, please contact your Account Director or a member of the Experian Decision Analytics Client Solutions Team. Alternatively, you can get in touch with us using the form below.