The current retail credit environment is characterised by increased price competition, shrinking interest margins and a reducing number of new customers. Effective applications processing and the effective management of credit is crucial to support additional sales, business growth and profitability.
The implementation of scoring and credit bureaux products may well be best practice, but the way in which they are implemented and used in operational functions is crucial to success.
PIC Solutions recently completed an Application Scoring RoadMap for JDG Trading, the largest, multi-chain, furniture retailer in Africa.
During this assignment, a full review of the existing applications procedures was undertaken, from the sourcing of new customers, risk and affordability assessment, through to the final accept/decline decision and subsequent tracking. The strengths of the existing procedures were analysed and recommendations for further improvements were made.
One of the key focus areas of the RoadMap was to ensure that the operational procedures in the stores are aligned to the overall credit and risk goals of the group.
Dick Behrens, Director of Credit & Administration for JDG Trading, states: "JDG has been very successful in the Southern African market to date, but this overall review of our credit policies and how they are applied within our stores has highlighted a number of areas that can be optimised. There is a common perception that consultants may `borrow your watch to tell you the time`, but PIC Solutions provided true added value in identifying the issues and the areas that we should focus on.
"Following the Application Scoring RoadMap, we have identified a number of other projects that we believe PIC Solutions will add value to and we look forward to further impressive results in the future."
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PIC Solutions is a unique, specialist customer management solutions company, providing project management, integration services and consulting solutions to a wide range of blue-chip clients. With over 200 years combined experience in the Europe Middle East Africa region, PIC Solutions has grown to become the largest customer management solutions company based in the Southern Hemisphere.
Our objective is to enable our clients to transform risk into revenue.
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