Risk Analysis Solutions

Competition for quality loans is increasing, delinquency and bankruptcies are at an all time high. How can your credit union manage overall portfolio performance efficiently and economically? Be ProActive...

ProAct works by combining your loan portfolio data, credit attributes, and multiple credit scores along with analytics and consulting. Executives can manage overall portfolio performance through ProAct Advisor, a real-time, web accessible dashboard. Easy access to multi-dimensional reporting, graphing, and "what if" scenario creation gives you the tools necessary to make more informed decisions.

Each ProAct session includes a credit bureau portfolio review, credit attributes, two credit scores, analytics, consulting, and web dashboard access. ProAct sessions operate as a batch process. Because ProAct is a cooperative program run with other credit unions, cost savings are passed on to participants in the form of lower overall program pricing. Combined with analytics and consulting, ProAct provides a comprehensive, benefits rich product when compared to credit bureau products. ProAct batch sessions are run bi-monthly; independent sessions can be run at any time (higher pricing will apply). Although there are no minimum session requirements, pricing discounts are available when participating in multiple sessions within a 12-month period.

ProAct Screenshot 1

Since every credit union has a unique credit culture, ProAct was designed to be flexible. The ProAct portfolio review and the ProAct Advisor can both be customized. Credit unions can run the portfolio review with both a risk score and a bankruptcy score, in addition to choosing from numerous credit attributes. The reporting dashboard, ProAct Advisor, has two service levels: Level I allows for anytime access to pre-set viewpoints and reports. Level II access, which requires submission of certain data elements from the client, provides ultimate flexibility and unlimited customization. Data for Level I will be available via web access four weeks after a session has been run. Data for Level II will be available via web access six weeks after a session has been run.

Portfolio reviews are considered "account reviews" under the FCRA, and the "permissible purpose" for accessing the consumer credit file allows the resulting information to be used only to monitor the current and predicted performance of an existing account relationship with a consumer to determine whether the consumer continues to meet the terms of account (to downgrade or upgrade accounts, increase/decrease credit limits, etc.) and NOT for cross-selling other products.

The combination of compelling portfolio data and a dynamic analytics dashboard provides credit unions the opportunity to use each ProAct session to manage a variety of lending needs such as:

Risk Management
As lending portfolios shift due to demographics, expanded FOM, and escalating bankruptcy, lenders can actively manage current risk and better forecast future risk based on revalidated score models that reflect today’s credit environment.
Account Life Cycle Management
- Determine score tiers for new accounts
- Set credit limits and identify low risk areas of portfolio
- Close accounts
- Raise and lower credit limits
- Make over limit authorizations and reissue decisions
- Identify and track high-risk accounts
Score Migration
The ability to track score shifts allows a lender to closely manage potential delinquency in addition to managing risk pricing strategies.
Dual Score Strategy Development
Incorporating a second score to a lending strategy allows lenders more accuracy when assessing risk; more advanced segmentation allows for maximizing portfolio potential.
Risk Based Pricing Strategy Assessment
Pricing strategies can be measured and adjusted as portfolio mix changes.

ProAct combines data, analytics, and consulting, allowing credit unions to evaluate loan portfolio performance from account acquisition to risk management. Clients have real time access to data through a web based executive dashboard, ProAct Advisor, which provides a wealth of powerful analytic capabilities including:

Evaluation of other score models
Establishing dual score strategies
Perform "what if" situation analysis
Monitor risk based pricing strategy
Manage credit
Determine areas of performance or loss
Manage multiple channels

ProAct allows you to actively manage portfolio performance across all channels. From tracking delinquency to increasing or lowering lines of credit, ProAct can help you manage the full life cycle of lending events.

Account Acquisition
Risk Management
Retention
Score Migration
Dual Score Strategy Development
Risk Based Pricing Strategy Assessment

With ProAct, the power to manage your portfolio is at your fingertips!