CASE STUDY

50% Reduction in Bad Debts Achieved by a Telecom Operator by Using Credit Risk Modeling

Sep 22, 2016

Business Challenge

Developing a risk scorecard to predict the payment behavior of existing and future loan accounts.

A leading telecom operator wanted to create a risk profile of its existing customers, to optimize collection efforts and reduce defaults.

Speak with our analytics experts today to know more about risk and compliance analytics and how it helps organizations better measure, monitor, prioritize, and mitigate risk.

Situation

Lack of a robust solution for classifying the customers based on payment behavior.

The client wanted to develop a scorecard based model for its customers to identify and separate the good accounts with a higher likelihood of regular payment, from potential bad accounts with high potential for defaults, for managing credit risk, bad debts and developing a targeted collections approach.

Solution/Approach

Credit risk modeling and early warning signals tracking followed by the creation of a risk scorecard.

We used regression modeling to assess the historical payment data to identify the key triggers and features indicating payment defaults. We used cross tab analysis to map the triggers to future events followed by credit risk modeling and early warning signals tracking on the customer data and created a risk scorecard/ scoring model for all customer accounts.

Don’t know where to begin? Request a free proposal to learn about Quantzig’s cutting-edge risk and compliance analytics solutions and how they will drive tangible results for your organization.

Impact

Reduced payment defaults by 50% and improved revenues.

The client utilized the scoring model in its credit extension decisions, to cap defaults by 50%. The client also identified potential defaulters and optimized its collection efforts to achieve improved collection revenues.

Ready to Harness Game-Changing Insights?

Request a free solution pilot to know how we can help you derive intelligent, actionable insights from complex, unstructured data with minimum effort to drive competitive readiness, market excellence, and success.

Recent Case Studies

Industries

Our advanced analytics expertise spans across industries, sectors, and functions, which enables us to deliver robust, agile solutions to all our clients. These are our core competencies, formed through years of experience.

Insights

Our free resources shed light on our extensive expertise and equip you with information to accelerate decision-making, growth, and innovation.

Share This
Talk to us