Effective Use of Data and Analytics Can Increase Profits
In the November/December issue of Non-Prime Times, the National Auto Finance Association’s official publication, FICO’s Ken Kertz describes six strategies that auto lenders can use to win more business:
- Frequent model assessments – Health checks help determine the effectiveness and accuracy of your models.
- Custom scores –Application data in combination with credit bureau data can better assess risk.
- Risk category segmentation – More granular segments enable you to offer more precise pricing and respond to competitive threats.
- Dynamic pricing – Optimization software can be used to achieve business objectives while balancing constraints.
- Automated policies and strategies – Business rules can improve consistency, reduce error rates and increase customer loyalty by enabling accurate decisions.
- Customer intimacy – Understand your customers and treat them as individuals in order to make the right offer at the right time.
These strategies align with top technology trends we’re seeing today around using Big Data, analytics and optimization to develop more intimate customer relationships.