ALI Solutions

A challenging economy fundamentally changes the underlying risk profile of banking and credit card customers. Delinquencies typically rise across all segments of lenders’ portfolios during a recession. Segments that historically included predominantly good customers now include customers who, sometimes for the first time, are not able to pay. For many lenders it is a new challenge to deal with long-time customers struggling to make payments; many of whom are likely to recover at some point in the future and be good credit risks again. This situation makes it more important than ever to target specific treatments to individual customers taking into account the depth, breadth, overall quality and value of each customer relationship. Lenders can no longer afford to assign strategies and actions for segments or groups of accounts; they must define and execute actions for the individual customer. This includes identifying, using advanced analytics and optimization, what actions will result in payment, and what interactions will be most profitable to the lender.

The key to success in this new environment is a lender’s ability to identify problem customers before they emerge as delinquent. This is the concept of preemptive risk management – early, accurate risk detection of pre-delinquent at-risk customers coupled with effective treatment policy. Those organizations that can identify looming credit problems before their competitors, and have the ability to not only assess the risk but act quickly and appropriately to mitigate it, gain competitive advantages in obtaining scarce payments. These lenders will win the fight to get to the majority of the limited amount of available funds, and companies like this will be in the best position when the economy recovers. Having done the best job managing good customers without jeopardizing the long-term relationship will result in higher retention rates and capturing the greatest levels of spend from good customers going forward.

Even after all those proactive measures, some customers will go delinquent. With delinquencies on the rise but collections resources held constant, organizations need to be able to become even more efficient in both adapting overall collection policies, identifying the optimal treatment programs and automating the campaign management process.

This pressure in Credit Risk Management and Collections creates a need for new solutions across the entire consumer credit lifecycle – from Early Month on Book assessments to Proactive Account Management to optimized Collections and Recovery. ALI addresses this challenge by offering two product lines:

• ActionOptimzer™ Suite – helps organizations mitigate risk, reduce credit and fraud losses and increase the profitability of every client interaction at every stage of the credit lifecycle. By fully leveraging ALI's patented, event-based analytic platform which fuses data from many sources, ActionOptimzer provides an actionable decision framework that accurately predicts behavior and risk patterns. This empowers risk managers to take decisive, preemptive actions at the individual customer level, delivering maximum control over their consumer credit policy operations and balance control ratios. ActionOptimizer enables organizations to evaluate the risk of current accounts before they become delinquent or too costly to resolve.
• Intelligent Contact Suite™ – reduces collections expense and increases cure rates by optimizing the treatment of each account, prioritizing calls with the greatest impact on delinquency and maximizing collection utilization. It is a data-driven, scalable solution that automates campaign management while enabling rapid deployment of new strategies to meet new challenges. The Intelligent Contact Suite offers a unique way to test those strategies while still enhancing dialer efficiency and compliance with corporate and legal standards.

Preemptively managing consumer risk while facilitating effective interaction with customers though multiple touch points is critical for lender success in the next several years.

With ALI's solutions, today’s credit, risk and collections managers now have the tools they need for:

• Dynamic, event-based decisioning so they can make the right decision, at the right time, for the right customer.
• Adaptable policy management to accurately test, validate and implement policies on demand.
• Comprehensive, up-to-date customer views to optimize account and collections management.

Benefits

ALI's products have been repeatedly proven in many of the world’s leading companies, helping them to:

• Effectively manage accounts from the first day of use.
• Reduce losses by the early detection of high-risk accounts.
• Improve float decisioning to contain fraud.
• Collect more money and improve bottom line results.
• Reduce cost-to-collect -- from pre-emptive collections to late-stage collections.
• Increase agent productivity and effectiveness.
• Improve right party contacts by fast-tracking debtors to the lowest cost channel, at the right time.

Click here for more information about ALI Solutions and how they can help your organization enhance risk management, increase collections and improve profitability.