Credit Risk & Lending Strategy

Credit Risk & Lending Strategy

The next recession will come – the time to prepare is now

We are in the last phase of the current business cycle, a 10-plus year bull market that emerged from the Great Recession. We are long past the best part of the cycle for booking risky assets. And when you also consider that consumer debt is at all-time highs in both the US and Canada, it’s no wonder lending sentiment is starting to shift.

American household debt just hit a new record high of $15 trillion
Federal reserve bank of new york, AUGUST 2021

The credit storm's a-brewing

Now is the time to prepare for the economic downturn. Don't get left behind the competition - Payson Solutions can help you overhaul your credit models and risk strategies so you're prepared to weather the storm.

We have experience across the credit life cycle, from adjudication to customer management to debt recovery. We can also help you improve your customer journey by transforming the loan application process so it is easier for people to become a customer.

  • Digitize the onboarding experience
  • Reduce your credit loss rates
  • Increase your approval rates
  • Generate higher risk-adjusted returns

Proprietary Scores

Industry credit scores are generic – which is good for benchmarking, but not so good for accurate risk prediction. Combining bureau data and your own historical customer data, we build powerful algorithms that accurately predict the likelihood of an applicant defaulting on their loan.

NPV Models

Building Net Present Value (NPV) models at the microsegment level unlocks a world of possibility for your credit strategy. We build custom models that allow you to optimize your credit policy and increase your risk-adjusted returns.

Collections Strategy

Long gone are the days of simply “dialing for dollars.” We can build a more effective and omni-channel strategy for engaging with your customers early, when they first start falling behind, so you can help them get back on track and succeeding with credit.

Payson In Action

See our presentation for the TransUnion Cards Advisory Board on an NPV-Based Decisioning System

Explore our other solutions

Payson can help:

Better manage your risk
Improve your efficiency
Modernize your capabilities
Grow your business
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