Skip to content
Neural Technologies4 min read

An Evolving Risk Model for an Evolving Credit Risk Landscape

An Evolving Risk Model for an Evolving Credit Risk Landscape

Recent years have underscored the unpredictable nature of global events and their profound impact on businesses and individuals alike. The emergence of significant global challenges, such as health crises and economic disruptions, has highlighted the need for an updated approach to risk management. Traditional models of assessing and managing credit risk are facing obsolescence in the face of these new realities. There is a growing consensus for businesses on the necessity for risk management frameworks that are both dynamic and predictive, capable of adapting to new developments and identifying potential issues before they arise.

Building Resilience in a Changing Telecommunications Environment

In the dynamic landscape of telecommunications, where traditional models struggle to keep pace with the expanding mobile functionalities like Exposure limits, M-payments and E-wallets, telecommunication service providers face a set of challenges that demand a comprehensive overhaul of their credit risk management strategies.

As the telecommunications landscape embraces financial services, the limitations of traditional risk management methods become starkly evident. The lack of robust statistical models and analytical frameworks hinders the ability of telecommunications service providers to accurately assess creditworthiness and anticipate potential issues.

Further hindering their efforts is the reliance on outdated legacy systems for vital operations, including customer vetting, account management, collections, and fraud detection. These legacy systems often struggle to handle the nuances of the diverse financial services offered through mobile platforms. Consequently, integrating these functions with modern fraud control mechanisms becomes crucial for telecommunication service providers to effectively mitigate risks and safeguard their operations well-being.

Recognizing these challenges, telecommunications service providers are compelled to seek dynamic risk models and capabilities that can seamlessly adapt to the intricate and ever-changing business environment. The complex nature of the evolution demands continuous updates to the credit scoring model, frequent adjustments to business rules, and the validation of new criteria. Furthermore, staying ahead requires the incorporation of emerging information sources, ensuring a holistic and forward-looking approach to credit risk management. 

Evolving Your Credit Risk Solution with Neural Technologies

Neural Technologies has a long history of working with clients to deliver cutting-edge and data-driven credit risk solutions. The Optimus Credit Risk Management product is a responsive and scalable credit risk management software solution that can adapt to meet the needs of a high-volume data landscape.

Optimus Credit Risk Management is designed to offer predictive credit risk management based on advanced behavioral modelling, analyzing customer lifecycles, credit limits, risk scores, and other critical credit data. The adaptive learning model, combined with customizable rules and thresholds, offers an effective credit risk solution that meets the unique requirements of your business.

By utilizing machine learning technologies, Optimus Credit Risk Management provides a powerful automated solution to credit risk analysis. Risk prediction models can identify and analyze key credit risks such as bad debt prediction, usage prediction, and anomaly detection, leveraging time-series decomposition and behavioral understanding to flag key credit risks. 

Comprehensive link analysis ensures that credit risk analysis goes beyond simple static data points, and instead builds a complete picture of the links and associated credit risks for an applicant or customer. That provides a powerful solution to tackle key fraud risks such as subscription fraud, as well as limiting exposure to bad debt.

Neural Technologies’ data analysis functionality is designed to provide a simple pathway for agents to identify and oversee risk, while providing automated solutions that greatly improve application approval and credit risk decision making. A simple alert system flags high-risk cases to risk management teams, and categorizes risks for ease of oversight.

Credit risk can be further mitigated through use of the Optimus Application Risk solution, offering fast and accurate accept/decline/defer decisions that support credit management and enable your teams to focus on high-risk cases. This solution offers personalized and automated credit limit recommendations based on applicant data, ensuring guardrails for your credit risk exposure. The automated approach is crucial in enabling your team to focus on demanding cases, while ensuring seamless onboarding of customers that may otherwise be delayed or deferred by less accurate credit risk modelling software. 

Neural Technologies’ advanced data solutions work to complement your credit risk case management approach, offering advanced investigation, business intelligence, and data mining tools, adding greater depth to your credit risk oversight. This enables users to manage each and every case effectively, as well as performing ad-hoc queries on customers and transactional data to further investigate hidden risks or unusual activity.

The credit risk landscape is evolving at an increasingly rapid pace. That means an effective credit risk management solution must be able to adapt and meet the needs of that changing environment. 

With the power of Neural Technologies’ machine learning-driven Credit Risk solution, you can prevent revenue leakage and decrease exposure to bad debt in even the most high-volume billing and application landscape. 

Secure your operations to a more resilient future with Neural Technologies' Credit Risk Management solution. Talk with us today.