Credit Decisioning & Strategy
Jaywing works with clients to enhance all aspects of their decisioning. We optimise acquisition, account management and collections strategies to maximise returns in a safe and controlled way.
Independent of any single credit reference agency, our consultants have extensive knowledge of credit bureau information used for credit checks, identity verification, income verification, and fraud. We understand the complexities of deploying decision systems and can provide expertise on industry best practice and regulatory considerations throughout the lending decision framework.
Predictive, explainable models
We are experts in the development and validation of quantitative techniques - scorecards and/or models - used to underpin credit decisions and manage portfolios. We have proven capability in developing highly predictive and explainable AI models using our award-winning modelling software, Archetype.
Customer-centric solutions
Our model outputs have helped clients to enhance bad debt trade-offs and operational efficiency whilst improving consistency in decision making. These key decisions determine acceptance, and also inform limit assignment and pricing. We developed our own price optimisation engine that is able to ingest regulatory and business constraints to maximise profitability, the power of which was demonstrated when we almost doubled loan profitability for a large UK bank.
At the end of the lifecycle, customer-centric collections and recoveries strategies support clients in optimising the amount collected, whilst considering the longer-term relationship with the customer. We have supported a large debt purchaser to significantly improve the expected value for accounts eligible for litigation. This was achieved by designing a new framework and developing several combined probability and cash models at each strategy decision point in the process.
Collections Strategy Optimisation
Our in-house AI modelling tool, Archetype, has been proven to outperform traditional logistic modelling techniques. For collections this can facilitate improved risk-based segmentation within the collections portfolio. The strategies then aligned to those risk segments will better reflect the perceived behaviours, with collections expertise and attribution techniques applied to ensure the actions being taken throughout the collections process are tailored appropriately. This includes the tailoring of Digital contact channels to customers, enabling debtors to negotiate their payment plans online and make card repayments.
The resulting framework optimises customer contact and engagement, maximising returns from the Collections operation. Operational cost and value information can then be readily applied within your forecasting process to inform decisions about resource planning and where additional value could be added.
Debt Sale/Purchase/Valuation
We have supported clients on both sides of debt sale transactions and have a clear understanding of how account level data is used to inform decisions about future cashflows, and therefore portfolio valuation.
We offer analytical support and advisory services, which can be used to support different aspects of debt sale: collation and cleansing of data in preparation for sale, valuation insight, engaging with interested parties, and data migration requirements. We develop robust frameworks, which are key to facilitating efficiencies in future debt sales.
Our approach can be tailored to meet client requirements but includes the consideration and combination of a suite of models predicting outcomes such as fraud, trace, contact, payment, and expected repayment behaviour.
This risk-based approach to portfolio pricing can be enhanced by the use of AI modelling techniques to boost modelling predictability and improve accuracy in the pricing estimates; such techniques can also be exploited to provide alternative forecasts based on different scenarios, providing greater assurance over the accuracy of recovery expectations, and supporting other internal requirements such as IFRS9.