Customer Portfolio Review Score

Understanding the risk of your current portfolio

People at high risk of not paying their bills often seek unsecured finance from multiple lenders.  So it's difficult for one lender to see the growing risk profile of a customer.  Often there are no signs of arrears history prior to a default or bankruptcy because people in financial stress often use multiple loans to artificially keep payments up-to-date.  Staying across the risks in your customer portfolio is critical.

 

A credit score on existing customers highlights changes in customer profiles affecting your customers and therefore your business before changes in account performance are uncovered.  Shifts in scores across time indicate how you may expect your customer default rates to change as a result of market trends seen on Veda's bureau. Our broader views helps you better understand the potential risks in your business.

 

Our portfolio review score is a powerful bureau score designed to help you manage your customers' revolving credit accounts that are subject to periodic review, such as a credit card, or help you recover overdue debts. These scores predict the likelihood of a future adverse event being lodged on an individual's credit file. Implementing portfolio review credit score, helps enable credit providers to manage revolving credit risk with greater accuracy and control.  You have the tools you need to help you improve your business profitability and drive better prudential practices by:

• Channeling credit exposure away from high risk accounts
• Recovering a greater volume of risky debt
• Recovering high risk debt sooner and more effectively
• Reducing debt collection costs through tighter controls and better channeling of activity
• Enabling the implementation of more effective capital adequacy estimates.

Do you have your own internal customer models? 

Internal models can be very predictive. However Veda's whole industry view lets you see broader behaviours and risk profiles that can act as leading indicators to increased credit risk in your business. Combining insights from the external market with your own business knowledge means you can better manage your credit exposures. 

Are you thinking of buying or selling a portfolio?

Veda's portfolio review credit score can help you value prospective portfolio acquisitions.  Your portfolio's risk is compared against the portfolio you wish to acquire in a de-identified, summary report. Alternatively if you are selling your portfolio you can benchmark against the Veda bureau.  Credit scores give you a consistent estimate of portfolio quality as well as providing a useful framework to support your due diligence.