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  • Writer's pictureArun S

How to Navigate Consumer Financial Hardship in Uncertain Times

Updated: Apr 10



How SCORE’s data-driven insights helps lenders proactively manage customer hardships, pre-delinquency  


It’s no secret that many Canadians are facing unprecedented financial hardships due to the COVID-19 pandemic, including their ability to repay debt obligations. Yet with more uncertainty ahead, lenders are forecasting economic headwinds that could result in emerging risks across mortgage, credit cards, and other personal lending segments.  

 

To-date, many lenders have worked with customers to offer deferment and accommodation options, to temporarily provide financial relief.  

 

But as businesses’ continue to operate under "a new normal,” how can lenders better refine their processes to work with customers? How can they become more efficient in debt collection, managing aspects of financial hardship and attrition where volumes are predicted to swell?


HOW SCORE ADDS VALUE TO YOUR BUSINESS 


SCORE delivers robust delinquency scoring models based on our unique, in-depth consumer risk and payment behavior measurements. These credit bureau-based delinquency models help you better segment, prioritize, and action on portfolio risk.  

 

Put simply, our collection models provide you with deeper insights to understand who to target and better qualify and personalize financial hardship options. This intelligent targeting allows you to optimize your customer relationships and retain your most valuable customers for future returns.  

 

The result is significantly improved accounts receivable management performance, including:  

  • Reducing credit losses and operating expenses

  • Lowering attrition for longer lifetime customer value

  • Improved customer satisfaction and Net Promoter Score (NPS) 


PROVEN RESULTS


  • 4 out of 5 major Canadian banks leverage SCORE collections scoring

  • Successful use cases include:

  • 12% write-off lift in a pre-delinquency strategy

  • 30% lift in the first 60 days and a 10% lift over four years for outsourced accounts

  • 10% to 20% lift in recoveries for post-write off accounts with a similar benefit to OPEX


"SCORE has helped us review our agency outsourcing. The SCORE team developed a strategy on how to maximize returns, and introduced us to top-performing partners in the market. Through the modeling process, we were able to get a lot clearer on what we needed to do, and we were certainly pleased with the 20 percent lift in returns.


I can't say enough about the SCORE team and their approach. They are a great group of people who provide clarity and are able to simplify the process for their clients. SCORE always has great ideas, and they are particularly good at getting down to the bottom line benefit. I would highly recommend them to anyone in the accounts receivable management space”.

Director of Collection, Schedule 1 Chartered Canadian Bank

 

"We have worked on multiple scoring validation projects with SCORE Statistical over the past several years, and they have always delivered on time and at a more detailed level than required. Their flexibility and ability to take on projects on short notice allows us the flexibility to manage our internal resources and projects more effectively.”

Thomas Higgins, Director of Credit Risk & Fraud, PC Financial


"It was a pleasure to tap into an experienced advisory. We learned how to analyze our competition, improve underwriting and risk management and drive immediate business value. SCORE acted as our trusted advisors on every front, providing macro impact that took us to the next level.”

Natalie Bell, Co-founder and COO, Magical Credit 

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