FinancialRiskScoreSM
The landscape of banking and finance, in today’s economy, are experiencing tight capital markets, unprecedented delinquencies and write-offs, and severe resource constraints. PredictiveMetrics' clients are realizing a significant improvement in cash flow, a dramatic reduction in delinquencies, losses, and operational costs while expending their limited resources and personnel most effectively using portfolio scoring.
FinancialRiskScore
statistical model for commercial credit and collection portfolio management is designed for commercial credit cards, installment loans, and credit lines. The model leverages internal performance data, which is proven to be the most predictive data for this type of model, to predict the likelihood that an existing customer will become severely delinquent, go to loss, or file for bankruptcy within 6-24 months of the date the customer was scored.
It has been mathematically proven that a portfolio scoring model built using internal data only is a much more powerful predictor of future delinquency than a portfolio scoring model built using only external bureau data. And it’s free and readily available.
Benefits of FinancialRiskScore
- Reduces average days delinquent and write-offs
- Significantly reduce costs by streamlining operations and optimal resource allocation
- Superior collection prioritization by knowing the probability of BAD (PBAD) and dollars at risk (DAR)
- You determine BAD definition (objective of the model)
- Score all existing customers, not just bureau hits
- Minimizes IT resources, no software required
FinancialRiskScore Outputs
Most scoring models assess the risk of a company by delivering a single data variable as an output of the model. FinancialRiskScore goes well beyond that by delivering eight (8) data variables each month on each scored customers that help you determine the inherent risk of the customer, the dollar value of your risk as well as tell you why your customer scored the way it did. FinancialRiskScore is typically delivered in a monthly scoring process and the data outputs are available to the users in both granular and report format though our hosted web application ScoreMiner or through a data file delivered through secure FTP transfer.
FinancialRiskScore FREE Validation Analysis
To prove to you that PredictiveMetrics’ FinancialRiskScore can provide a better analysis of your credit risk than any other method, PredictiveMetrics will gladly perform a FREE FinancialRiskScore Validation Analysis based on your AR data.
PredictiveMetrics' analysis compares the FinancialRiskScore predictions to the actual results and provides you with various outputs that let you know just how well FinancialRiskScoredid and what you can expect if FinancialRiskScore is implemented at your company. Also, if you are currently using another type of scoring, if you provide PredictiveMetrics with those scores we will be happy to provide you with a Champion–Challenger Analysis to show you how much more predictive FinancialRiskScore is over your current solution.
