Case Study 1
50% Value Increase for Global Bank
2nd Order created a new credit line increase policy for the credit card portfolio at a top ten global bank. The project involved a complete overhaul of the CLI policy for the bank’s credit card portfolio. 2nd Order applied a pragmatic approach with the appropriate level of sophistication to estimating marginal utilization and segmenting the portfolio. The end result of this project was a 50% increase in value generated by the CLI program with almost no increase in net exposure. In addition to overhauling the policy, 2nd order also designed an economically efficient test design to ensure future policy revisions are well grounded.
Case Study 2
15% Approval Rate Increase for Retail Finance Company
2nd Order rebuilt the application stage model and policy for a private equity backed retail finance company. The firm had historically depended on an array of hard cuts to drive its credit policy. 2nd order modeled and analyzed multiple data sources (including major bureaus, secondary bureaus, and checking data) and determined an optimal model to drive risk predictions. 2nd Order identified toxic populations that should be declined and found benign populations that were being declined in the previous policy. The resultant model and credit policy enabled a 15% increase in approval rates and total value with almost no increase in risk.
Case Study 3
Improved Liquidation Rates for Bank Client
2nd Order developed a new Collections strategy for a Bank, which increased their bucket 2 and 3 liquidation rates by 40%. The previous strategy had been uniform treatment of delinquent accounts starting in bucket 2. We developed customized treatment streams through multiple Collection channels for highly differentiated customer segments, driven by sophisticated modeling. Using both internal and external data sources, we delivered the optimal treatment to the right account at the right time and at the right cost.
Case Study 4
Significantly improved major US bank’s website profitability
We re-optimized a major bank’s acquisition website to maximize its economic profitability. The first phase of the project involved the development of website analytics capabilities and building traffic optimization models. These models were used to develop several website strategies to be tested live. Based on testing results we were able to design a re-optimized strategy that delivered significant value to the bank.
The end results were >20% increase in profitability as measured by the bank by better matching prospects to offers resulting in:
- Better Conversion
- Higher Approval Rates
- Improved Product Profitability