Banks don't make money unless they get their customers to transact more - and why not increase their credit limits to get them to do just that.
With the economy ailing, banks have continued to increase credit limits to their customers. A mammoth increase in credit card limits together with the increase in the number of cards issued to more than double, banks seem to be playing a hard game. Although, this strategy may have been adopted to balance the mortgage crisis, analysts believe it may backfire. Overall delinquencies reached 4.9 percent in the first quarter of 2008, a level not seen since 2002 and card write-offs have been rising since the second quarter of 2007. Write offs on uncollectible funds, increase in late payments and quarterly payment rate decline seems to be haunting bankers globally. According to economists Consumer credit quality will continue to decline as debt burdens and financial obligations continue to rise, real estate prices fall, and gasoline and energy prices go north.
With the possibility of a prolonged recession, rising interest rates, the mortgage crisis and increasing defaults, the banking industry needs to act fast. Competition from Non bank lenders and foreign banks, dependence on regulations and world economics and new business challenges seem to add to the misery.
These harsh realities have forced the banking industry to focus on building innovative strategies and business models to remain competitive. Moreover, the right decisions needs to be taken quickly. The silver lining is that banks already have the data it needs to drive the decisions but the challenge remains to extract the intelligence from the huge volume of data.

In order to remain competitive meet strategic objectives and constantly measure KPI's, banks must focus on the following:
- Risk Management
- Customer Churn Management
- Operations & Performance Management
Market Equations can assist you with the following studies:
- Credit Scoring
- Customer Retention
- Credit Risk
- Fraud Prevention & Detection
- Operations Risk
- Performance Management
- Pricing and Profitability
- Enterprise Risk
Case Study:
A large Bank in SA uses Market Equations to improve Credit Collections
The Market Equations team performed the following:
- Extracting, Cleaning, Preprocessing, Transforming and loading the data
- Feature & Strength Analysis
- Building Predictive Models (Scorecards)
Manage your risk by exploring the Market Equations Banking Industry Solutions. Write to us
A scorecard was built using historical data on delinquent accounts. A higher score implied a higher propensity of repayment that implied targeting these accounts for settlement as a priority.
Market Equations met the following Objectives:
- Maximize Recovery-Revenue
- Minimize Collection Costs
- Optimize Collection Efforts
- Identify possible NPA Accounts
- Identify 'Good'/No Action/Auto-Resolution Accounts
- Overall Collection Strategies for various Accounts
Market Equations goes beyond providing you substantial cost and time efficiencies to providing you access to a highly competent and qualified group of Banking industry experts, focused on providing you enduring results that have a lasting impact.
With decades of experience in Strategic Management Consulting our leadership has empowered and built organizations that have constantly outperformed its competition. With Market Equations you have access to some of the best minds in the Industry, with decades of rich industry specific experience that help us tailor solutions based on every need. We endeavor to provide you solutions that have an enduring impact.
The ME knowledge team comprises of PhD's, Statisticians, Business and Financial Analysts, Management and ScienceGraduates and Technology professionals to provide customers a comprehensive solution that work all the time.
Get Started : Business Analytics Outsourcing
Market Equations provides Business Analytics outsourcing services helping organizations reduce their current spends while helping them increase profitability by at least 100 percent!
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About Market Equations
Founded in February, 2006 and among the first Research and Data Analytics outsourcing companies in India, Market Equations India combines advanced analytics expertise and decades of Consulting experience to add measurable and enduring value to organizations globally. Market Equations India customers gain access to the combined capabilities of a result oriented Research and Data Analytics outsourcing team comprising of PhD's. Subject Matter Experts (SME's), Business and Financial Analysts, Data Scientists, Statisticians, Management Science and Technology professionals from premier educational institutions in India.
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Contact Us
Offices:
- Bangalore, Delhi
- INDIA
- info@marketequations.com