In this in stable economic climate with a long time low interest rates, bubbles may burst overnight. Regulators enforce banks and insurers to play a role in protecting consumers against over consumption of credit but also to apply personalized strategies for vulnerable customers once they are in the base. New legislation (IFRS 9) obliges banks and lenders to create forward looking impairment models.

AdviceRobo supports banks and insurers by providing continuous risk monitoring on an individual basis. Its behavioural credit scoring (or early Warnings) targets, profiles and monitors customers based on Machine Learning (ML). It predicts default, churn, loss giving default, and bad debt to enable banks to pro-actively service those customers that do need attention. In doing this banks and insurers can not only take care of customers but at the same time improve the customer lifetime value and profitability of their customer bases.

Benefits predictive credit scoring

  • Help financially troubled customers

  • Predict and prevent foreclosures and arrears

  • Lower default and churn rates

  • Compliant with IFRS9 ruling

  • Lower risk costs

  • Improvement of the quality of the portfolio

  • Additional behavioural information

  • Low cost SaaS solution

  • Fast set up process

  • Safe and secure data flow

  • Continuous monitoring on individual customer level

  • Results available 24/7

 

Use case: A Dutch bank selling mortgages

Goals:

  • To increase the Gini score of the default model with 20%
  • To decrease the default of the mortgage portfolio

 

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Solution:

  • Data quality scan
  • Application of AdviceRobo’s default model on the behavioural data of the customer base

 

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Results

  • Increase AuRoc of 21%
  • Increase of Gini of 61%
  • Advice on improvement of data quality

Thanks to the early warnings from the inventive AdviceRobo-solution, we are even better placed to get in touch with clients proactively. Working with the people of AdviceRobo is always inspiring and they really know what our business is about.
— Gerben Jonkman, Associate Director Retail Banking NIBC Bank