Banking

Our Banking practice provides the following services:

Customer behavioural analysis

We analyse customer behaviour and create segmentation models to help our clients understand those customers better. We also use predictive analytics to assist in predicting account closures, dormancy, propensity to take-up new products, loan prepayments and defaults.

Insight guides action, and small improvements in customer behaviour have dramatic effects on our clients’ financial results.

Pricing

We ensure enhanced revenue by optimising pricing frameworks used for banking products and services.

Risk modelling

We develop models for our clients to gain a better understanding of the risks faced in their businesses, and then to manage unexpected outcomes. Key risks modelled include credit risk, market risk, operational risk and liquidity risk.

Credit portfolio analysis

By analysing our clients’ credit portfolios we help our clients better understand the risk-return characteristics of their portfolios and identify ways of optimising the risk-return trade-off.

Cash flow modelling

We project contractual and behaviour cash-flows arising from assets and liabilities under a range of scenarios to assess liquidity and interest-rate risks in banking.

Model validation

We validate risk models used for loss provisioning and determining capital requirements.

Targeted marketing campaigns

We design and optimise targeted marketing campaigns, as well as the evaluation of the effectiveness of our own and other such campaigns.

Financial modelling & business case development

We use a range of financial modelling techniques to assist in budgeting, business case/product development, and corporate valuations. Actuarial techniques and perspectives provides a unique insight and ability to manage your business.

Scoring Models

A quantitative process that ranks customers in terms of the likelihood of occurrence of a specific event. Scorecards, combined with other business strategies such as expected approval rates, profit, collection and losses, are used as a basis for the decision-making.

Loyalty Strategies

We help our clients with the design, modelling and management of Loyalty and Rewards programmes to drive profitable behaviour, increase customer retention and drive new acquisitions. We assess risk, estimate rewards liabilities and calculate ROI on rewards initiatives. We also extract value from the rich customer data collected through rewards programmes to generate a more holistic understanding of customer needs.

Policies Documentation

We design robust policies, which allow companies to take stronger control of the approval of loans process, setting minimum requirements such as income and credit bureau ranking. These policies form a critical component of companies’ internal control processes for regulatory compliance.

Collection, or ‘Champion and Challenge’ Strategies

We help companies achieve target levels of collection success in terms of both profits and costs incurred. We design collection initiatives that improve profitability, service and cash collected whilst reducing operational costs. In addition, these strategies identify clients by their probability of default and test alternative collection treatments.

Payment Solutions

We help to reduce companies’ losses by designing customized payment solutions for their clients, for example loan restructuring products or settlement agreements.

Portfolio Valuation

We develop a selling strategy to identify and evaluate a segment of a portfolio and propose a selling price according to desired objectives.