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.
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.
Discover more about Neural Technologies Credit Risk Management solution