Managing delinquency using Customer Analytics for a large savings bank

The Bank, after realizing record breaking growth year-on-year, realized that the next opportunity for growth lies on how effectively and efficiently it relates to the customer, embarking on a bid to increase the value of its customer base thereby embracing the principles of customer centricity.

A major player in consumer loans, the Bank set its eyes on understanding all its 400,000 consumer loans customers!  The bank wanted to profile, segment, and predict customer behavior in relation to delinquency, believing that by doing so they would be able to manage the risk of default, and create the profile of customers or segments that are most likely to complete loan payments.

The Bank acquired Portrait Customer Analytics-Portrait Miner and began their journey with Kpability. The consultants assisted the bank in scoping and developing the analytics roadmap to equip the organization with the skills in data preparation and customer analytics. With Portrait Miner’s sophisticated algorithms such as decision tree and scorecards, the bank was able to identify customer segment profiles that had the highest probability of delinquency across time period buckets of 1 to 29 days, 30 to 50 days and above 50 days.  Lists of these customers were given to the company’s collection team who in turn engaged customers.  Analytics and its use in collection operations resulted to significant decrease in delinquent customers on the first month alone!

After building its competence along customer analytics, the bank with Kpability's assistance has since move ahead on their CRM roadmap particularly around operational CRM deployment and campaign management.