KeyBank selected a relationship-based strategy for collections and credit line management, powered by FICO® TRIAD® Customer Manager http://www.fico.com/en/products/fico-triad-customer-manager . This adaptive control solution, which is used to manage about 65% of the world’s credit cards, combines risk analytics based on customer data with automated decisioning. Users such as KeyBank can run multiple strategies in champion/challenger tests to continually improve decision performance. The solution is used in areas such as transaction authoriziations, card reissuing and early-stage treatment of delinquent accounts.
Account, customer, and household-level data feeds into FICO® TRIAD® Customer Manager from a variety of sources. Daily and monthly data is fed from the bank’s analytical datamart and data warehouse, and the system also incorporates regularly refreshed bureau data and scores.
“The advantage we’re seeing is the ability to bring all of these disparate data sources together within the TRIAD framework to make our decisions,” says Chip Clarke, KeyBank’s senior vice president for strategic analytics.
KeyBank’s primary use case of TRIAD Customer Manager is to prioritize delinquencies for action based on severity and probability of payment. Collections managers have multiple champion/challenger strategies competing at any given time. The bank uses models for each stage of delinquency and payment projections, along with credit bureau data and full customer-level information, all of which are factored into its decisions.
TRIAD Customer Manager has also helped the bank take better control of credit line management. In order to be sure high-deposit customers were being treated appropriately, the bank previously employed a laborious, manual process for identifying high-risk lines and determining whether to reduce or block them. Now, with TRIAD Customer Manager, the entire process is automated, with links to the servicing system to implement the revocations and reductions.