In today's competitive market, it is essential to have an effective new business strategy. An optimal balance between account acquisition and risk exposure must be obtained.
In response to this challenge, Cell C has implemented TransUnion's risk management solution with phenomenal results.
The risk management solution enables Cell C to target new markets effectively through utilising an advanced combination of scorecard matrices. In addition, monitoring the performance of the scorecards and the behaviour of the credit portfolio has been proven to be extremely beneficial to Cell C.
TransUnion's monitoring reports have multiple purposes and functionalities which include:
* Integrity testing post implementation
* Notification and potential impact of changes on the customer's operational side, including approval policy changes, as well as changes in take-up rate and percentage of accounts actively trading
* Alerts on population shifts and the possible effects on model performance
* Portfolio performance measurements, eg shifts in risk distributions, delinquency trends, seasonal trends, current and past quarter comparisons and bad rate trends
"Our partnership with TransUnion has enabled us to make the right decisions when attracting potential customers. The risk management solution has given us greater control over the account origination process and has resulted in the percentage of new accounts, from which no income could be generated, to drop by more than 50%. At the same time, the process requires far less manual intervention, is more streamlined and auditable, allowing Cell C to free up resources in the credit risk department. The added monitoring facilities have contributed significantly to the robustness and reliability of the solution," said Faradh Mahomed, Credit Operations Manager of Cell C.
Mohammed Razzak, Executive Director: Analytics, from TransUnion Analytic and Decision Services (ADS), adds: "The Risk Management Solution is designed to maximise market share in a targeted and sensible manner. The added monitoring functionality proves and ensures the stability of the solution. Our relationship with Cell C is of great importance to us and we are determined to provide them with the best solutions available in the credit market."
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