Optimus Credit Risk

Bad debt mitigation - Reducing financial exposure in your business

A significant and growing problem for corporations today is the loss of revenue through bad debt (non-payment for goods and services received) and customers defaulting on payment commitments.  The use of advanced technology can provide valuable support to existing in-house screening policies, credit agency checks and debt collection processes to maximise revenue and minimise losses and provide you details on your financial exposure at any time.

Our credit risk management solution assists organisations to both assess prospective customers for credit risk at application stage and to predict and manage payment risk throughout the customer lifetime:

  • Managing credit risk at application stage: enables organisations to assess each prospective customer for creditworthiness using neural predictive analytical models, helping organisations to make informed decisions about which customers to accept and on what terms.
  • Managing credit risk throughout the customer lifecycle: enables organisations to set initial credit limits that are individual to each customer. Over time, a profile begins to form regarding customers' spending and payment habits which is used to automatically adjust individual customers' credit limits in line with their behaviour. Alerts are generated when customers exceed, or are predicted to exceed, their credit limit.

Key benefits:

  • Fast, accurate application decisions
  • Dynamic credit limits which adapt according to spending/payment behaviour
  • Those able to pay are rewarded with higher credit limits, encouraging further spending
  • Advanced warning of credit limit breaches before end of billing period
  • Automated customer communication processes, including SMS payment reminders
  • Complete view of risk exposure - how much customers owe, individually and as a whole

Features:

  • Pre-activation risk assessment, credit-scoring and product assignment
  • In-life behavioural profiling that indicates likelihood of delinquency
  • Once in delinquency, dunning management and write-off prediction
  • Treatment strategies - offering or restricting products and services to assure revenues, maintain good customer relationships and reduce collections activity
  • Comprehensive audit trail of user and system actions
  • Can be deployed on-site or as a SaaS solution

Why do you need this?

Bad debt is a problem that can differentiate if a service offering will be profitable or if corporate revenue targets will be met.  With a global consumer need to offer credit facilities to procure services and products, it is imperative that each service offered to a consumer is measured against the likelihood of bad debt and monitored closely to identify the potential for bad debt before it occurs to ensure that there is minimal financial loss. With automated analysis and treatment process, potential delinquency can be managed and averted.

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Related products and services:

Optimus AML

Identifying money laundering - AML compliance to remove money laundering from your business

Optimus Collection

Maximising revenue collection from delinquency


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