Challenge:

A securitized lender was looking to accept more high quality customers. In a fiercely competitive market, the lender was losing customers due to its inability to both accurately segment based on risk and price competitively.

Platform Solution:

DemystData developed a risk model that accurately predicted risk out of samples using historical chargeoffs. This model was applied across the client’s current segmentation to assess effectiveness of their process. DemystData showed how its scores could be used to improve customer segmentation and offer credit to declined customers.

Results:

  • The client leveraged the DemystData model to increase customer conversion by and extend credit to an estimated 1,200 new customers annually