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Credit risk solutions

Managing credit risk in today’s dynamic environment

Protect credit portfolios and drive growth through more precise, equitable and responsive decisioning.

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Driving impact

With the proper credit risk treatments, credit portfolio performance can increase significantly

137%

increase in cross-sale volume*

36%

increase in new account volume*

49%

increase in profit contribution*

Credit lifecycle

Our expertise helps to overcome fundamental challenges throughout the entire lifecycle

Origination

  • Prospecting
  • Pricing
  • KYC/Authentication
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Application

  • Income verification
  • Application score
  • Line assignment
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Portfolio management

  • Behavior score
  • Line management
  • Fraud management
  • Income update
  • Cross-sell/Upsell
  • Attrition/Retention
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Collections

  • Collections score
  • Early/Mid/Late delinquency
  • Debt collection agencies
  • Charge-off
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Approach

A phased approach to credit risk engagement creates user-specific flexibility

Diagnose

Prioritize opportunities to enhance credit risk management approach.

Develop

Design strategies to execute identified enhancement opportunities.

Analyze

Build core capabilities to evaluate performance and benchmark.

 

Measure

Quantify the impact of strategy and scorecards.

Case Study

A U.S. bank strengthened credit risk controls for its consumer credit card portfolio

The bank engaged Mastercard to help it improve credit risk management across both its underwriting and account management practices.

Performance review

Quantitatively examined varying risk profiles based on income, credit history and customer-provided data.

Analysis

Conducted a three-dimensional analysis of existing and new account performance.

New accounts based on redeveloping initial line assignment and segmentation.

$2m

increase in cross-sale volume

1.3m

increase in new account volume

Existing accounts based on segmentation and credit line increases.

$2m

increase in profit contribution

12%

increase in profit contribution

Data solutions

Mastercard’s data solutions lead to better decision-making

The size and scope of our data help enhance risk profiling, improve predictive accuracy and contextualize risk.

Small business

Our solutions deliver 50+ metrics to build a clearer picture: from ownership and financial health to operational behavior. This can help better support underserved and thin-file businesses, accelerate time to decision and enhance resiliency in volatile markets.

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Consumer

From first touch to final decision, 400+ metrics to set the stage for smarter acquisition, underwriting and monitoring. The result is enhanced segmentation, dynamic credit line assignments and higher conversion and retention rates.

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Bespoke solutions

AI-based data and analytics enhance lenders’ solutions from acquisition through collections

Acquisition

Targets customer segments. Evaluates fraud vs. legitimate accounts.

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Underwriting

Determines creditworthiness.
Assesses financial impact of loans under various scenarios.

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Line assignment

Evaluates customer’s ability to afford and maintain a loan.

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Portfolio management

Tracks customers who are doing well or at risk, and any changes in the customer’s financial state.

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Collections

Pinpoints customers most likely to move to a higher delinquency stage, and potential actions to take.

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Contact sales

Get in touch to learn how Mastercard can help enhance your credit risk management strategy.

Contact sales
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Featured resources

*Mastercard Proprietary Research, 2024 ↩

Business & Market Insights