Manage credit risk across the customer lifecycle with AI
Imagine a solution that takes the risk out of underwriting new credit applications, helps you manage each account in your portfolio, predicts credit delinquencies and optimizes collections before they become charge-offs or cause customer churn. What if you could gain greater insights based on transactional behavior in real time?
The credit risk lifecycle
The Brighterion AI Credit Risk Suite leverages artificial intelligence across the customer credit lifecycle to provide the most holistic view of your customers while improving profitability and customer experience.
Credit risk
at origination
Assess credit risk for new customers at credit origination, enabling more informed underwriting and faster decisions
Credit delinquency &
portfolio management
Detect early warning signals of credit delinquency and develop personalized strategies at a customer level
Collections
optimization
Use real-time data and intelligence to optimize customer outreach and collections strategies
EBOOK
Credit risk and how to manage the customer lifecycle with AI – a concise guide to credit delinquency, managing risk and how to prevent defaults
Solutions: Credit Risk
Challenge
Total household debt increased by $333 billion to reach $15.58 trillion in the fourth quarter of 2021, the largest increase since 2007. Aggregate debt rose $1 trillion during 2021, standing $1.4 trillion higher than at the end of 2019.
New extensions of installment credit were at historically high volumes in 2021 for both mortgages and auto loans. In the fourth quarter, mortgage originations were at $1.03 trillion and newly originated auto loans stood at $181 billion.
Source: New York Federal Reserve, Feb. 2022
Credit card debt is returning to pre-pandemic levels, totaling $860 billion, with 8.3 percent delinquent over 90 days. Student loans stood at $1.58 trillion, an $8 billion decline from Q3 2021, but still 1.9 percent higher than in Q3 2020.
Delinquency rates were very low – 2.7 percent of total debt – having declined through the beginning of the pandemic. Low rates reflected forbearance measures provided by the CARES Act. While a small share of current mortgages became delinquent in the last quarter of 2021, foreclosures remained near zero.
Solution
The Brighterion AI Credit Risk Suite manages financial risk across the customer lifecycle. From credit origination and underwriting to transaction and delinquency monitoring and collections, this solution is truly an end-to-end management tool.
- Credit risk at origination – Assess risk for new customers at application and credit underwriting, enabling more accurate decision making and improved customer experience
- Credit delinquency and portfolio management – Detect early signals of credit delinquency and credit abuse behavior, and develop personalized strategies for successful outcomes
- Collections optimization – Use real-time data and intelligence to optimize customer outreach and collections strategies
Results
Brighterion AI monitors each account to provide highly predictive, real-time analysis that learns each customer’s behavior on an event basis. The outcome is superior credit risk assessment, dramatic delinquency reduction, and most importantly improved customer experience.
With just 6-8 weeks from data extraction to results, Brighterion AI delivers almost instant value. Some of the largest global lending institutions have reduced default-related losses by up to 32% by using Brighterion AI.
REPORT
AI in focus: the navigating bank credit risk playbook – using AI to effectively manage credit risk during turbulent times
Key benefits
Improve the customer experience
Manage risk through the customer lifecycle
Predict losses early to reduce cost
Leverage data across your organization
“Citibank is assessing our AI platform to determine enhanced capabilities to mitigate credit losses”
“Banco de Bogotá is leveraging Mastercard’s AI capabilities through its AI Express product to improve the customer experience, increase our profitability and identify further opportunities for operational excellence”
