Business Case
Benchmarking SME lending operation and creating a roadmap to leading practice
Business Challenge
Like many lenders, the client used external bureau data for new business applications, and only had access to negative information. Despite good use of internal data, the existing decision process had to compensate for this limited external data and tended to be labour intensive.
The Decision Analytics answer
The client wanted to establish an informed view of how to make the best use of the enhanced data environment. It invited consultants from Experian’s Decision Analytics division to carry out a Business Review and provide recommendations for improvements across its SME lending operation through the increased use of available data sources and automation.
Business case metrics
- Bad debt savings – achieve ROI with less than 3% reduction in annual write-offs.
- Business growth – achieve ROI with increase of 3% in new business growth.
- Operational efficiencies – achieve ROI with reduction in headcount of 10%.
- Capital adequacy – achieve ROI with less than 0.5% improvement in portfolio quality as measured by RWA.
- Cost of Capital – achieve ROI with a 2% improvement in portfolio quality as measured by RWA.