Global debt reached a record-breaking USD303tril in 2021 according to the International Institute of Finance (IIF), with more than 80% of the new debt burden coming from emerging markets.
This frames the huge challenge for operators seeking to reduce their bad debt risks, and ensure robust credit risk monitoring and management in a challenging global environment. That challenge is even more acute in operators established in or seeking to grow in emerging economies which are facing the most significant economic disruption.
The impacts of the global COVID-19 pandemic have delivered a seismic shock to economies and enterprises around the world, and one likely to be further exacerbated by the ongoing war in Ukraine and interlinked energy crisis. Household debt is likely to continue to be a cause of concern in this fraught financial landscape, and create a difficult environment of credit risk and bad debt exposure for businesses.
The Optimus Credit Risk product provides a robust and scalable credit risk management solution which can assist enterprises in this challenging environment. It delivers predictive credit risk management based on advanced behavioral modeling, leveraging data in real- or near-real-time to ensure that your business can react quickly to a high-volume, rapidly-evolving debt ecosystem. Here are 7 benefits of Credit Risk Management from Neural Technologies.
- Customer-centric risk management. Our advanced solution allows you to monitor risk through personalized engagement metrics, using customers’ preferred channels of engagement to address any credit risk in a responsive and positive manner. This personalized approach allows your enterprise to enhance its resolution rate, and ensure ongoing positive customer sentiment thanks to your efforts to resolve cases in a swift and satisfactory manner.
- Proactive management. Monitor any data element in enterprise systems such as usage, payment activity, call destination, payment type and more, allowing you to enjoy comprehensive oversight that informs proactive case management. The inclusion of automated monitoring provides rapid analysis of any change, while the system learns through a self-reinforcing learning process that empowers it to adapt and build improved understanding of high-risk customer behavior over time.
- Easily Configurable. The fully customizable solution allows you to set rules and thresholds that meet your business needs. This means you benefit from new data, behavioral modeling, link analysis, case manager workflow, rules, neural analytical models, segmentation and special lists, all catering for your own internal business preferences, without the need for lengthy third-party intervention.
- In-House Control. This sophisticated technology is designed to deliver an intuitive solution that empowers your business teams. That means it is designed to enable your business to build and update risk models internally, removing the prohibitive costs of third-party vendor intervention and delivering a uniquely-suited solution for your enterprise that can evolve alongside dynamic market conditions.
- Adaptable Exposure Limits. You can establish exposure limits for each customer, offering a flexible alternative to fixed credit limits that the customer cannot exceed. You enjoy the benefits of a uniquely responsive and personalized solution that allows you to maintain appropriate credit risk monitoring and management, while providing a better service for customers. Credit risk teams can set clear alerts for breaching limits, facilitating immediate analysis and customer contact if necessary.
- Prepay Prediction. Our Credit Risk Management solution enables management for prepay programs, tracking usage and measuring it against spending limits. This helps empower effective forecasting to determine appropriate spending limits for accounts with a regular payment history.
- Clear audit Trail. The Clear and comprehensive audit trail makes it easier for your credit risk teams to track and reference individual accounts and credit events, providing clear oversight of metrics such as data received, progress on cases, and actions taken.
Comprehensive credit risk management
Neural Technologies has a long history of engaging with customers around the world to mitigate their credit risks. Unlike more rigid, rules-based credit risk management software, our advanced solution provides an adaptive, automated credit risk management solution that evolves and scales to meet your changing needs.
In previous work with a major private sector Asian bank, Neural Technologies delivered our holistic credit risk solution for an institution with a footprint that included over 5,000 branches in more than 2,500 cities. Our Credit Risk Management solution, backed by adaptive credit limits and supported through further application risk functionality, delivered an estimated USD56,000 of additional monthly recovery of bad debts for its customers.
Our customizable, end-to-end solution combines rules, statistical models, and machine learning to deliver a comprehensive credit risk management solution for even today’s challenging debt landscape. It combines a configurable mitigation strategy, customizable by you, with early detection alarms to rapidly identify and highlight exposure to risk.
As the credit risk landscape continues to evolve, enterprises should act now to ensure they have the right systems and technologies in place to tackle this landscape.