| ALI Solutions Credit Risk Score |
|
The Nilson Report  Credit card issuers are not launching large mass mailing solicitation campaigns for new customers in this recessionary market, but they are still processing applications for new accounts from their branches, Web sites, take-one brochures, and highly selective targeted offers. Creditworthy customers include those young adults who have been able to find well-paying jobs, people wanting to switch card issuers, and people wanting additional cards in response to cuts in their other credit lines. ALI Solutions, formerly Austin Logistics, markets ActionOptimizer to credit card issuers as a way to score new accounts for credit risk as soon as the cardholder makes their first transaction. Most risk-management systems don’t score new accounts until there’s been 30 days of card usage. ALI believes that by then recovery options have declined and the probability of charge-offs has risen. ActionOptimizer supports predelinquency actions such as a soft collections call, verification of account data, credit hold, credit line revocation, and credit line enhancements. ALI recently completed a year-long test of its product at a bank that issues both general purpose and private label cards, and says balances on accounts more than 30 days past due were reduced by 31% and that the number of accounts in this category fell by 23%. ActionOptimizer can be deployed onsite or hosted through a third-party processing platform. It can also be applied to existing accounts that have not been active for several months. Tom Miller is Senior VP at ALI Solutions in Austin, Texas, (908) 654-9666, This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Prior issue: 926 |