FinancialRiskScoreSM Plus Driven By D&B Data
Proven to be the most predictive for managing existing customer risk and allows more accounts to be scored.What Is FinancialRiskScore Plus?
FinancialRiskScore Plus is a statistical commercial collection and portfolio management model for commercial credit cards, installment loans and lines of credit. The model predicts the probability of severe delinquency (you determine bad definition) or loss at some point between six and twenty-four months from the date of the score. This multifunctional model helps banks and financial services companies implement risk-based collections and can be used for new credit authorizations with existing customers, portfolio management and credit line management.
Scoring Is Not A One Size Fits All Technology
There are scores designed for specific applications and there are different methodologies. The two primary uses of scoring for banks and financial services companies are new account evaluation and portfolio credit and collection management. The primary scoring methodologies are judgmental/rules based and statistical based. The bureau/generic scorecards and FinancialRiskScore Plus are statistical based models, but bureau/generic scorecards are traditionally designed for new account risk assessment, because they do not use customer payment data, which is the most predictive for existing account risk assessment.
What Type of Scoring Provides Greater Benefits for Portfolio Management?
|
Judgmental/Rules Scorecards |
Bureau/Generic Scorecards |
FinancialRiskScoreSM Plus |
Designed for credit and collection portfolio management |
Rarely |
No |
Yes |
Designed for new account evaluation |
Yes |
Yes |
No |
Statistically validated on your portfolio to prove performance |
No |
Rarely |
Yes |
Leverages the predictive power of your internal data |
Sometimes |
No |
Yes |
Score and decision all existing accounts |
Sometimes |
No |
Yes |
Quantifies risk with a validated probability of BAD on your portfolio |
No |
No |
Yes |
Calculates you outstanding lease dollar at risk |
No |
No |
Yes |
New FinancialRiskScore Plus
More Predictive,
Better Results Because It’s Driven By D&B Data
This ground-breaking predictive scoring model was developed to meet companies demand to have a portfolio risk assessment tool specifically designed to cost-effectively manage delinquency risk in their portfolio. The powerful combination of internal performance data blended with D&B data, makes this the most predictive scoring model on the market today.
FinancialRiskScore Plus Benefits
• |
Reduces average days delinquent and write-offs |
• |
Increases the efficiency of operations through better resource allocation |
• |
Superior collection prioritization by knowing the probability of BAD (PBAD) and the Dollars at Risk (DAR) based on a validation of the model of your accounts |
• |
Client determines the BAD definition (objective) for the model |
• |
Greater predictiveness by blending creditor’s A/R and internal performance data with D&B commercial bureau data |
| • | Scores more accounts, small, mid-size, and private company accounts (no hits) by using your internal data |
FinancialRiskScore Plus Output
• |
Scores are on a scale of from 0 to 100 |
• |
The probability that the account will go bad within 6 months from the date of score (PBAD) |
• |
The account’s Risk Class, which is used as the basis for applying collection strategies |
• |
Dollars at Risk (DAR), the dollar value of an account’s outstanding balance at risk |
• |
Multiple Adverse Reason Codes that explain why the account scored the way it did |
FinancialScore Plus Validation Results By Risk Class
To prove FinancialRiskScore Plus is the most predictive scoring solution available, we offer to provide a FREE Validation Analysis to help you evaluate how well, blending your own customer data with D&B data, the model predicts future payment performance. Below is a sample report that shows the accounts allocated into 6 risk groups based on their score. This analysis shows the model’s ability to differentiate future problem payers from future timely payers and quantifies how accurately Score Plus predicted future customer payment behavior.
To Request A Free Retrospective Validation
To Evaluate How Well FinancialRiskScore Plus Works On Your Portfolio Contact Michael
Colasurdo Of PredictiveMetrics At 732-530-9303 ext. 111 (mcolasurdo@predictivemetrics.com)
Or
Andy Kahn Of D&B 410-489-6774 (kahna@dnb.com)
| About PredictiveMetrics | About D&B |
| Founded in 1995, PredictiveMetrics, Inc. is a global leader in providing predictive scoring and analytical decision solutions using advanced statistical techniques for credit, collections and debt recovery. Turning probabilities into profits, PredictiveMetrics’ decision technology spans many industries, types of financing, and ages of debt. By using our customers business expertise combined with our data, modeling, and resource capabilities, PredictiveMetrics provides superior predictive decision technology for companies worldwide. | D&B (NYSE:DNB) is the world’s leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence® for 167 years. D&B’s global commercial database contains more than 150 million business records. The database is enhanced by D&B’s proprietary DUNSRight® Quality Process, which provides customers with quality business information. This quality information is the foundation of D&B's global solutions that customers rely on to make critical business decisions. |
