About Client
The client is Canada’s largest consumer finance retailer, operating hundreds of stores nationwide and offering a wide range of financial services. The organization serves a diverse customer base and manages high-volume lending operations across multiple locations. Risk control and portfolio health are critical to sustaining growth in such a competitive lending environment.
The Background
Credit risk analysis is a core function for financial institutions and plays a critical role in maintaining operational stability. Unsecured short-term loans are among the most widely used credit products globally, increasing competition within the lending space. As portfolios grow, customer risk profiling in banks becomes necessary to assess creditworthiness accurately, monitor portfolio health, and ensure informed lending decisions through advanced analytics.
The Challenge
As part of its strategy to expand revenue and market presence, the client planned to launch a new installment loan product. To succeed, the client required an analytics solution that could address multiple risk and performance concerns, including:
- Predicting defaulters and non-defaulters with high accuracy.
- Identifying insolvency risk early in the customer lifecycle.
- Reducing Non-Performing Assets (NPAs) while improving approval rates.
- Managing risk effectively for new customers and thin credit files.
Existing methods lacked the analytical depth required to support these objectives at scale.
