BoE Bank commences Profiler Service with PIC Solutions

Nedbank Limited, incorporating BoE Bank, has commenced with a two-year Profiler Service contract entered into with PIC Solutions in late 2002.

Nedbank Limited, the largest banking group in Africa, is in the process of incorporating the business of BoE Bank Limited into its operations as part of the merger concluded between the two institutions in 2002.

Profiler is an analytical service, which uses scorecards to predict the likelihood of an existing account becoming delinquent over a specified period of time. Using domain expertise of the African credit industry, coupled with statistically-based analytical models; accounts are individually profiled, based upon their credit risk.

Every month the BoE accounts will be grouped into customer profiles, which are intuitive and easily managed. These Profiles are then monitored on a monthly basis and are automatically validated and aligned. As Profiler is dynamic, it can be applied to all aspects of portfolio management, such as marketing, collections, credit limit assessment, authorisations and profit-based pricing.

By segmenting BoE Bank`s customers into eight unique Profiler groups, the bank will now rapidly be able to implement profitable account management strategies, thus increasing revenue and reducing bad debt exposure and expenses.

Bayan Dekker, Director of Predictive Modelling at PIC Solutions, states: "What makes the Profiler Service so unique is that it is run on an ASP-basis and clients only pay for the accounts that are actually processed. This provides clients with a turnkey risk management solution, which can be rapidly implemented and has been proven to be highly cost-effective."

Fanie Botha, Manager: Card Risk at BoE Bank, adds: "We took this decision to sign-up for the Profiler Service as BoE Bank has a number of consumer credit portfolios that will benefit significantly from credit risk scoring. By utilising Profiler we know that we will be able to generate revenues from our portfolio management strategies much faster than if we had to wait for the development and implementation of custom behaviour scorecards. In addition to this opportunity for cost-savings, Profiler offers a better ROI for smaller portfolios, as Profiler is only charged for on a usage basis."