The Data Analytics Blog

Our news and views relating to Data Analytics, Big Data, Machine Learning, and the world of Credit.

Scoring in collections webinar

Principa Decisions (Pty) L Globally there is immense pressure on collections and 2021 is due to be another year where collection departments will be forced to improve what they do and how they do it.  A variety of themes have emanated over the last few months, and collection departments are focusing on how to better engage the debtors as well as the introduction of sophistication through themes such as digital collections and advanced scoring. Scoring in collections webinar In November 2020 Principa ran a “scoring in collections” webinar in partnership with CIS Kenya (equivalent of South Africa’s SACCRA). During this 1 hour and 20-minute webinar we covered a wide range of themes surrounding scoring in collections. This included how to introduce scoring into collections, the different types of scoring and then some of the bigger themes such as how machine learning might help your collections. If you’d like to know the answer to the last point, please download our free whitepaper which details how Principa have successfully deployed machine learning models and a machine learning platform at the largest debt collection agency in Africa.  The list of topics covered in the webinar are the following: Collections 2020 Different types of scorecards Using a collection scorecard within a collection strategy Bringing all the models together Machine learning Contactability model considerations Settlement model considerations Q&A To watch the full webinar click here.  If you’d like to discuss your collection or scoring concerns, please be in touch with us below.

Model validation and adjustment

The time is NOW for model validation and adjustment. One of the major premises used in credit scoring is that “the future is like the past”. It’s usually a rational assumption and gives us a reasonable platform on which to build scorecards whether they be application scorecards, behavioural scores, collection scores or financial models. That is reasonable until something unprecedented comes along. You can read about this black swan event in our previous two blogs here and here.

Shift happens: Top tips on Scorecard re-alignments

Principa employs a variety of best-practice credit scorecard building techniques including mathematical programming, regression modelling, optimal segmentation-seek genetic algorithms and reject inference parceling, amongst others. Through our credit risk scorecards businesses can look to improving their credit risk decisioning by 5-30%.

How to COVID-proof your scorecards with short-outcome machine learning models

“Unprecedented” is a term with which we’ve all become quite familiar over the last few months. COVID-19 has changed our society and our economy quite drastically. In predictive analytics “unprecedented” has far reaching implications – simply put it’s difficult to build models when we do not have data that reflects similar trends to what we will expect moving forward.

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