Main News Desk

'Minority Report' for Risk Triggers faster bank responses

Real-time alerts allow rapid action to reduce growing consumer credit risk

November 19, 2007

Experian®, the global information services company, has launched Risk Triggers, a daily alert service which flags at-risk customers to lenders so that they can act quickly to prevent loss before they are exposed to it.

Part of a new suite of Notification Services, Risk Triggers gives banks the live information to respond to changes in the financial circumstances of individual customers. In the US, Risk Triggers have been used extensively by financial institutions for years with great success.

Risk Triggers monitors Experian’s extensive data warehouse, including its CAIS (Credit Account Information Sharing) database, for changes in customers’ financial circumstances and alerts the lender to changes that may need to be acted upon – but only flags those changes over which it can take action. Because of this, although the service monitors 20 different factors, it filters out the ‘noise’ of excess data.

Banks choose which Triggers to monitor, from CCJs to missed payments, and make them conditional, i.e., circumstances can either improve or deteriorate. They can combine these to identify and create dynamic customer groups – ‘At Risk’ or ‘Dormant’ for example – which can be managed differently as their circumstances change.

The service is made possible through Experian’s extensive customer intelligence, held in the largest data warehouse of its kind in the UK. In the past, monthly and weekly monitoring often failed to flag potential loss until after it was too late for a financial institution to take action. In the current market, with financial institutions writing off millions of pounds of bad debt, there is increased pressure to react quickly to customers’ circumstances, help them through a difficult situation and protect their profit margins.

“Real-time notification services will become the bedrock of risk management for our clients – this is the lender’s version of the technology of ‘Minority Report’,” explained Peter Brooker, Director at Experian. “Timely intervention prevents loss before it occurs. Not only does this preserve profitability, but is absolutely fundamental to responsible lending and good customer management. In the current climate, lenders want to manage their customers more responsibly and ensure they have visibility of timely and accurate intelligence to make informed customer decisions.

“A typical problem that Risk Triggers will flag is when a customer misses a second payment on a credit card or a loan with a different lender. Tracking a combination of events could flag if two different accounts change status for an individual, a credit limit is exceeded or there is a new CCJ or bankruptcy. Risk Triggers will help banks to avoid bad debt and make significant savings through initiating loss prevention actions quickly and efficiently.”

Executive quote

“Real-time notification services will become the bedrock of risk management for our clients – this is the lender’s version of the technology of ‘Minority Report’,” explained Peter Brooker, Director at Experian. “Timely intervention prevents loss before it occurs. Not only does this preserve profitability, but is absolutely fundamental to responsible lending and good customer management. In the current climate, lenders want to manage their customers more responsibly and ensure they have visibility of timely and accurate intelligence to make informed customer decisions.

“A typical problem that Risk Triggers will flag is when a customer misses a second payment on a credit card or a loan with a different lender. Tracking a combination of events could flag if two different accounts change status for an individual, a credit limit is exceeded or there is a new CCJ or bankruptcy. Risk Triggers will help banks to avoid bad debt and make significant savings through initiating loss prevention actions quickly and efficiently.”

Multimedia

About the company

About Experian
Experian® is a global leader in providing information, analytical and marketing
services to organisations and consumers to help manage the risk and reward
of commercial and financial decisions.

Combining its unique information tools and deep understanding of individuals,
markets and economies, Experian partners with organisations around the
world to establish and strengthen customer relationships and provide their
businesses with competitive advantage.

For consumers, Experian delivers critical information that enables them to
make financial and purchasing decisions with greater control and confidence.
Clients include organisations from financial services, retail and catalogue,
telecommunications, utilities, media, insurance, automotive, leisure, ecommerce, manufacturing, property and government sectors.

Experian Group Limited is listed on the London Stock Exchange (EXPN) and
is a constituent of the FTSE 100 index. It has corporate headquarters in
Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and
Nottingham, UK. Experian employs approximately 15,500 people in 36
countries worldwide, supporting clients in more than 65 countries. Annual
sales are in excess of $3.8 billion (£1.9 billion/€2.8 billion).

Contact details

Anna Moseley or Rachel Hodgson, LEWIS PR, Millbank Tower, London. SW1P 4RS. Tel: 020 7802 2626. Email: annam/rachelh@lewispr.com

Bookmarklets:

Recent Press Releases

2010 Archive

2009 Archive

2008 Archive

2007 Archive

Jump to: