DecisionMetrics Launches 'Recession Scores'
DecisionMetrics has constructed a suite of ‘recession scores’ aimed at helping lenders to manage very specific elements of customer management. Built using criteria that have been significantly affected by the recession, the aim is to identify those customers whose future payment performance may not match the original risk assessment because of the adverse recessionary impacts.
Customer arrears are rising rapidly and roll rates are increasing significantly which suggests that credit scores built pre-recession may no longer perform as designed. Given such circumstances, lenders need to understand the impact of the recession on their portfolios and can identify those customers that are most affected.
Gary Scott, director at DecisionMetrics, said: “These pre-delinquency and early collections scores are designed to be used in conjunction with a lender’s existing customer management processes to provide the very ‘recession insight’ that a lender’s existing behavioural scores are not capable of identifying.”