vision 2014: have you had a credit decisioning tune-up lately

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©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Have you had a credit decisioning tune up lately? Barry Timm Experian #vision2014

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Periodic and ongoing review of decisioning data to include approval and decline rates, scoring trends, overrides and policy violations is critical to maintaining a healthy portfolio. Don’t have an “uh-oh” moment due to unforeseen/preventable occurrences. Time goes by quickly. Without routine tune-ups, your small-business or consumer-lending race car can sputter and stall.

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Page 1: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

© 2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc.

Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in

any form or manner without the prior written permission of Experian. Experian Public.

Have you had a credit decisioning tune up lately?

Barry Timm Experian

#vision2014

Page 2: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

2 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

I love my job!

Page 3: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

3 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

There has been a significant business shift in client engagements

Ten years ago – 90% were new client implementations

Past three years – 50% of engagements are “configuration tune ups”

Why even talk about a “tune up”

Page 4: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

4 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Poor gas mileage

Not running on all cylinders

Engine “noise”

Blowing smoke

Need a tune up because of…?

Page 5: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

5 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Client comments

“There has been a significant turnover of senior management and / or power users”

“We are not utilizing the available functionality to maximum potential”

“No changes have been made to the system since it was purchased”

“Repetitive re-keying of data occurs throughout the entire process”

“Policy changes and procedures need to be updated in the solution”

“We need to gain greater underwriting and processing efficiencies to support increased volumes and remain competitive”

“The processes need to be reviewed and updated to support true automated decisioning”

You might need a tune up if…

Page 6: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

6 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Configuration tune up

What is it?

Page 7: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

7 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

1. Initial call to understand client needs and objectives

2. Pre-site review of client configurations to include:

► Products, workflows, CPM’s and pricing

► Queue management

► Development of evaluation cutoff review analysis/report

3. One or two day on site visit

► Dedicated time commitment

► Inclusion of “key players”

4. Identification and capture of:

► Configuration changes

► Add-on opportunities

5. Action item report

Configuration tune up

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8 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Configuration tune up

Sample overview findings

Application volume by product and total

Scorecard and current gray area strategy

Summary of add-ons

Workflow and queue management

Credit policies

Pricing tables

Page 9: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

9 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Sample evaluation cutoff results

Configuration tune up

Page 10: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

10 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Configuration tune up

Sample evaluation cutoff results

Page 11: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

11 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Configuration tune up

Bank2Business® credit policy violations on approvals– all products

Violations on approvals Count Percent

of total

Recommendations

Total exposure greater

than $50,000 112 16%

Assess whether this is a true policy violation

or whether it should be demoted to a warning

Company has been in

business for a short time 53 8%

Bankruptcy indicated on

the business report 2 0%

Delinquent taxes rule 3 0%

Principal has a

bankruptcy 4 1%

Principal has bankruptcy

on credit report 5 1%

Principal online CB score

is missing 1 0%

Note: The count reflects total number of CPV but is not on a per product basis. Using the number to calculate CPVs per product or per application will give an

overstated result. Percent of total refers to the percent of total approvals in Figure 1.1.

Page 12: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

12 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Configuration tune up

Why consider

having a tune up?

Page 13: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

13 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Gain overall efficiencies (improve MPG)

Achieve consistencies in the underwriting process (smooth operation)

Enhance turnaround times and client experience (reduce in engine noise)

Configuration tune up

Page 14: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

14 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Progress is impossible without

change, and those who cannot

change their minds cannot

change anything

“ ” – George Bernard Shaw

Page 15: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

15 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

…I really do love my job

Page 16: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

16 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Q&A

Page 17: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

17 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

For additional information, please contact:

[email protected]

Hear the latest from Vision 2014

in the Daily Roundup:

www.experian.com/vision/blog

@ExperianVision | #vision2014

Follow us on Twitter

Page 18: Vision 2014: Have You Had a Credit Decisioning Tune-up Lately

18 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

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the topics and products covered in this presentation.