Contact Us
credit card data analytics

PAG helps Top 10 card issuer rebuild its outdated customer score model

Home > Banking > Underwriting Strategies > PAG helps Top 10 card issuer rebuild its outdated customer score model

April 29, 2021

Banking

,

Case Studies

,

Underwriting Strategies

Company: Top 10 Credit Card Issuer – US Co-Brand & Branded

Challenge:
Company has greater than 30 co-brand partner portfolios and several branded portfolios. Over the last six years, their underwriting strategies were using an older version of FICO and a custom score built in 2013. They have a very light staff of risk-management analysts to revise a custom update to their portfolios. They were looking for support to rebuild their custom score to the next generation and revamp several of the larger portfolio underwriting strategies.

PAG Solution:
PAG was engaged in a two-stage approach, which included developing a new custom score for underwriting and then utilizing that score, once approved, to develop custom underwriting strategies for several of their larger co-brand portfolios and two of the branded portfolios. PAG used its internal capabilities and systems to work with the bank to gather the needed data requirements from both internal bank data and external data were applicable. PAG developed a new custom underwriting score with six unique segments, which overall increased the KS from 34 to 48 for the overall scorecard when rolled up. From there, the score was quickly approved by the client, and coding into the system began immediately. PAG then developed the underwriting strategies using the new custom score and the newest version of FICO.

Client Benefits:

  1. PAG was able to not only deliver a new custom underwriting score, but also worked with the Decision Science team to upgrade their internal model documentation process, and provided them a new model governance template for ongoing model management (all OCC & FDIC aligned best practices)
  2. PAG was to improve the approval rate across the portfolios that were managed by PAG an average 22%
  3. Targeted loss rates were decreased by 6% overall, while overall profitability increased by an average of 26% across all portfolios touched.
  4. PAG’s solution came in slightly over budget, due to the mid-project request for model governance and procedures, however, came in below the overall expectations of the client

Managing Partner of U.S. Operations

Mr. LaRoche is a resourceful, results-oriented Executive with over 25 years of financial services experience; emphasizing collections risk management, dialer operations, MIS and reporting analytics, acquisition strategies, loss forecasting, credit policy, account management strategies, portfolio conversions, due diligence, and collections operations management. He also has over 15 years of direct risk management experience, with 3 years of collections line management experience possessing excellent analytical skills and the ability to manage diverse groups in strategies, modeling, collections, dialer operations, loss forecasting/loan loss reserve modeling, financial analysis, operations and loss avoidance.

David started his career in 1997 as a customer service representative for Travelers Bank. Since then, he has held the following senior positions:

  • Director, US Operations for Bridgeforce Consulting
  • Sr. Director and Call Center Leader for American Express
  • SVP. Collections Strategy and IT leader for Washington Mutual

Chief Risk Officer

Dale Hoops has over 25 years of experience within the financial services industry, with a focus on Risk Management, Collections, Fraud, Account Management Strategies, Loss Forecasting, stress testing, and economic analysis.

Dale started her financial services career in 1996 as a part time customer service representative and teller in a small financial center while attending the University of Richmond. Her career has included senior roles at Bank of America, Citi, and MBNA America. She has experience with multiple retail products, including consumer and commercial cards, private label and co-brand, deposits, vehicle lending, mortgage, and home equity. Her key strengths have been identifying opportunities for improvement through business analysis, strategy development, and risk governance.

In addition to her professional career, Dale has extensive leadership experience with non-profits with event planning, policy, budget, and audit management. She is a member of the Board of Directors for the Girl Scouts of the Chesapeake Bay, which serves 8,000 girls in Delaware, Maryland, and Virginia. She is the former President, Vice President, and Treasurer at a local Parent-Teacher Association, former community pillar chair for Bank of America’s LEAD for Women Delaware network, and served on the leadership team for the Field of Dreams Relay for Life event to raise funds for the American Cancer Society.

Chief Data and Analytics Officer

Mr. Ridgeway has over 30 years of experience within the financial services industry, including Risk Management, Finance, Project Management, Compliance, MIS, IT & Operations. He has held senior roles at several of the top 5 Banks, including MBNA, Wells Fargo & Citibank. Dee has expertise in Risk oversight and a wealth of knowledge in the regulatory footprint (CFPB / OCC / FRB) in financial services. He has hands-on knowledge in the strategy world with numerous credit products including: credit cards, auto lending, mortgage and home equity, and unsecured lending. Dee is a co-founder of Predictive Analytics Group, worked as a Senior Consultant for Hoops Consulting, LLC., and owned & operated Mayflower Analytics LLC.

From a Risk Management perspective, Dee has experience in portfolio management in credit underwriting and loss mitigation during several growth cycles and economic contraction periods. He understands the needs and partners well with operational risk, modeling, and loss forecasting risk functions.

Dee is a SME on risk data strategy (data architecture, data management, and systems integration) and often creates a "passable bridge" between Risk and IT that translates business needs into executable business plans.

From an MIS, reporting, and portfolio analytics perspective, Dee has a proven track record of designing portfolio reporting that meets executive and end user needs that often have been labeled the "gold standard."

CEO and Chief Strategy Officer

Mr. Hoops has over 25 years of experience within the financial services industry, including Credit Collections & Fraud Risk Management, Business Operations, Control &Compliance, Strategic Planning, Forecasting, and Marketing Analytics. He has served as a Chief Risk Officer for Barclaycard US Partnerships, a Global Scoring Head at Citibank, and a Site President for Wells Fargo Financial. Steve is a co-founder of Predictive Analytics Group and has owned & operated Hoops Consulting, LLC for the past 4 years.

Steve started his financial services career in 1993 as a part-time telemarketer while attending the University of Delaware for his Business Administration degree. Mr. Hoops has spent his 25-plus years within the industry building best-in-class operations with each company he has supported. His career has been highlighted by leading several large functions for several Tier 1 and Tier 2International Banks, including:

  • Credit Policy (CRO for $20B co-branded portfolio, Barclaycard US partnership)
  • Credit Policy (SVP for $28B retail Co-brand & Private Label portfolio, Citibank)
  • Loss Forecasting / Loan Loss Reserves ($30B Consumer portfolio, Citi-Financial)
  • Collections Risk Management ($70B Co-brand & Private label portfolios, Citibank)
  • Modeling ($30B Consumer Loan & sub-prime Mortgage portfolio, Citi-Financial)
  • Collection Operations (Head of 410 person operations center, $17B Auto, Personal Loan & Mortgage portfolio, Wells Fargo)
  • Credit Analytics (MBNA/Bank of America, Wells Fargo, Citibank)