|
As a regular contributor to topics of interest within the lending industry, we are pleased to share the following documents free of charge. Just select the title of the white paper you would like to receive. To complete the download, we will request some contact information. We ask that you not pass on any documents to third parties for any purposes.
 Quarterly Credit Quality Trends Report | Volume 5, 1st Quarter 2012
Bridgeforce is pleased to present the fifth volume of our Credit Quality Trends Report. The goal of this
quarterly report is to serve as a comprehensive resource for public information relevant to consumer and
small business credit risk, as well as the lending community at large.
Request the full report
Integrating Modeling & Analytics into Decisioning Making
We at Bridgeforce are both strong believers in the power of analytics and are very much aware of its limitations. We have seen the harm done by decisions that could have been much better informed by available data if the right analytical framework had been in place and in some cases even greater harm done by reliance upon analyses or models that were fundamentally flawed.
Request the full report
Special Report – Default Management Operational Compliance Proactively address the "new norm” for 2012 and beyond
Managing to heightened regulatory oversight has become one of the major challenges in the lending
landscape over the last few years, with an increased focused on operational compliance following
elevated default management activity during the recent economic downturn. The creation of the
Consumer Financial Protection Bureau (CFPB), passage of the CARD Act, issuance of the Mortgage
Consent Orders, and a growing public demand for additional consumer protection measures have
combined to place additional compliance demands on default management business functions.
Request the full report
Quarterly Credit Quality Trends Report | Volume 4, Summer 2011
Bridgeforce is pleased to present the third volume of our Credit Quality Trends Report. The goal of this
quarterly report is to serve as a comprehensive resource for public information relevant to consumer and
small business credit risk, as well as the lending community at large.
Request the full report
Selecting and Implementing Advanced Risk & Collections Systems
The process of selecting and implementing a new system constitutes a major investment in time and
resources. The sheer number of items to consider can leave decision makers asking questions such as:
- What is the right time to invest?
- What are the signals that a new investment is needed?
- What kind of benefit can a new system deliver?
Request the full report
Quarterly Credit Quality Trends Report | Volume 3, 1st Quarter 2011
Bridgeforce is pleased to present the third volume of our Credit Quality Trends Report. The goal of this
quarterly report is to serve as a comprehensive resource for public information relevant to consumer and
small business credit risk, as well as the lending community at large.
Request the full report
Special Report – Sizing the Economic Recovery in Mexico
Bridgeforce's International Practice has seen heightened activity over the last several months as the
global economic outlook has begun to stabilize. We recently undertook two major projects with
international clients—the first at a multi-national financial institution in the UK, and the second at one of
the leading retail banks in Mexico. Bridgeforce will also complete an engagement in Bogota, Colombia
early in the 2nd quarter of this year, and we plan to extend our presence in the UK and Central/South
America as 2011 progresses. As part of our increased focus on Latin America, this Special Report
examines key metrics from the Mexican financial sector and provides perspective on its recovery.
Request the full report
Comprehensive Management of Profitability and Credit Risk
The events of the last few years have demonstrated the dangers of over-reliance upon a narrow view of customers.
Assumptions about asset values, and therefore the reduction in risk provided by those assets for secured loans, have received the most scrutiny for their role in lending decisions that ultimately led to large losses. The total picture is much broader, however. Impacts of acquisition channels, debt levels, promotional programs, workout programs, funding sources, and many other variables also were demonstrated to be part of a highly interconnected picture.
Request the full report
Quarterly Credit Quality Trends Report | Volume 2, 4th Quarter 2010
Bridgeforce is pleased to present the second volume of our Credit Quality Trends Report. The goal of this quarterly
report is to serve as a comprehensive resource for public information relevant to consumer and small business credit
risk, as well as the lending community at large.
Request the full report
Social Network Analysis – Connecting the Dots
Few developments in the area of fraud and financial crime management have created as much excitement, or demonstrated as much potential, as the newly emerging area of social network analysis (SNA). As an emerging technology, SNA offers capabilities that often surpass other analytical solutions in their ability to integrate different pieces of data to form a more complete picture of emerging fraud threats.
Request the full report
Special Report – US Mortgage "Foreclosure-Gate"
Following a tumultuous summer that saw global attention drawn to the fiscal crisis in Western Europe, focus has once again returned to the United States as concerns regarding foreclosure proceedings have rippled throughout the financial industry.
Request the full report
Special Report: Managing Payment Incentives – Perspectives on the Visa/MasterCard Settlement
The Visa/MasterCard settlement agreement announced on October 4 brought to a close the two-year battle with the Department of Justice over merchant acceptance practices and interchange rates. Traditionally, merchants have complained that network policies contained in acquirer/ISO processing agreements have hindered their ability to steer customers towards lower-cost transaction channels.
Request the full report
The Calm before the Storm? A Look at Emerging Trends in Payment Fraud
In recent years, many financial institutions have seen their fraud losses stabilize or even decline, despite recent economic turmoil. The ABA’s biennial survey, for example, shows declines from 2006 to 2008 in PIN based debit card fraud losses across most bank categories.
Request the full report
Enterprise Fraud Strategy – Vision and Reality
Financial institutions of all sizes are discovering that they need to re-think their approach to managing fraud. The rapid expansion of new products and new channels for customer access has opened up new opportunities to satisfy customer needs. However, this expansion has also opened up the opportunity for fraud that cuts across an institution’s product lines, channels and even geographic regions, as fraud rings attempt to exploit any vulnerabilities they can find.
Request the full report
Quarterly Credit Quality Trends Report | Volume 1, 3rd Quarter 2010
Bridgeforce is pleased to present the inaugural issue of our Credit Quality Trends Report. The goal of this quarterly
report, and the forthcoming Resource Center on the newly launched www.bridgeforce.com, is to serve as a
comprehensive resource for public information relevant to consumer and small business credit risk and lending
communities.
Request the full report
Feast or Famine? Smart Solutions to Accelerate Lending to Small Businesses
Through Bridgeforce’s research and analysis of this complex problem in our hands-on
work with clients and our direct experience as a growing small business, we have
identified two key challenges that are impacting lenders and small businesses:
- Tightened Credit Standards and Lower Quality Applicants
- Reduced Loan Demand
Request the full position paper
Getting Back to Growth -
Credit Acquisition and Growth Opportunities in 2010
The global economic downturn shifted the focus of ALL financial institutions from
growth to risk mitigation and loss reduction. Most have spent the majority of the last
two years repairing the dikes, essentially doing whatever it takes to stop the flow of
losses as credit cards defaulted, small businesses shut down, and homes were
foreclosed on.
Request the full position paper
Making Mortgage Modifications Work
Low pull-through and trial modification success rates are plaguing the Treasury Department’s
Home Affordable Modification Program (HAMP). All too many executives, politicians and
reporters are quick to point fingers at the culprits, but identifying a sole responsible entity is
not an easy target. Unfortunately, pointing fingers and assigning blame will provide little
benefit to financial institutions, homeowners or government agencies that are all desperate
to get the nation’s mortgage woes clearly focused in the rear view mirror.
Request the full position paper
An Irrational Economic Environment Forcing the Auto Finance Industry to Become Rational
As much as we never want to blame the economy for unexpected portfolio
performance, the auto finance industry has undeniably been challenged by
significant, worldwide, economic developments. Despite best efforts, rarely do all
functions of an auto finance company perform at their optimal level at the same
time; and, the transparency of challenging economic times is very unkind to the “soft
spots” to an organization (defined as those areas that management is either in
process of addressing and/or does not yet have time to address).
Request the full position paper
A Game Plan for Addressing the Challenges in Real Estate Collections and Loss Mitigation
The recent housing crisis has created our most challenging economy in modern day
memory. The financial industry cannot ignore its lessons. Among them: Major
improvements are necessary in real estate collections and loss mitigation. The fact is
that until very recently lenders lost little money from foreclosing upon property. Now
the average foreclosure comes with significant losses, and that changes everything.
Many new government programs are being created in the US and abroad to
systematically address the mortgage problem, but it is ultimately the job of lenders to
re-direct business growth and curb losses. With each new month come an ever
increasing number of distressed customers seeking loss mitigation assistance.
Request the full position paper
Position Paper: A Candid View of Auto Finance in Crisis Management 2009
The auto finance industry is suffering severe pessimism. Markets are obviously in a state of flux, access to capital is tough, and loan originations are down while losses are undeniably headed in the wrong direction. No one seems to have a good answer to the question “where’s the bottom of this economic downturn?” Taking into consideration several other trends (housing market crash, home equity defaults, record-high consumer debt levels, rising unemployment, and general market constraints), it seems that 2009 may very well be to auto finance what 2008 has been to mortgage.
Request the full position paper
Opportunities in the Crisis: Protecting Both Customer Loyalty and Mortgage Assets in a Difficult Time
The concurrence of a broad housing market decline, all time high consumer debt levels and inflationary pressures on daily living expenses has resulted in a major consumer liquidity and debt crisis. The severity of the current market conditions make this credit downturn cycle potentially more severe and persistent than past cycles of rising delinquency, requiring more focused loss prevention efforts.
Request the full position paper
Comprehensive Management of Profitability and Credit Risk
Bridgeforce is focused upon helping clients manage consumer and small business credit products, both in
the US and internationally. Within this focus we work closely with clients across the full range of credit
segments, often with multi-product customer relationships, and we see first-hand the importance of a
comprehensive approach to managing risk and profitability.
We have found that for any strategy regarding the management of risk and profitability to be truly
comprehensive, it must be comprehensive in two dimensions:
- Across products to take a full customer view
- Throughout the credit life cycle
Recent challenges in credit markets have highlighted the need for careful focus upon these topics, as any
lack of alignment across either of those dimensions leads to reduced profitability. The rest of this
document explores these concepts and their application throughout the cycle of customer relationships.
Request the full position paper
Cards ~ Driving the Convergence of Insurance and the Financial Services Industry
The topic of integrated payment trends is extremely broad and can not be given proper attention in a single white paper. Therefore, we've chose to focus on one of the hottest areas, the phenomenon of cards driving the convergence of insurance and the financial services industry.
Our first assertion that we want to share is that there IS a convergence underway, and cards are a key reason for it. Just over the past year, there has been a lot of movement in this area. Second, it is our intention to help educate particularly those in the insurance industry on payment solutions, and offer some perspectives on the use of cards in insurance verticals, with emphasis on the value proposition and where they apply. Lastly, we hope to frame some challenges and outline an approach to getting directionally started with a card offering in this space.
Request the full position paper
Profit is the Reward of Risk
It has been said that profit is the reward of risk. Every decision an employee of a financial institution makes involves some degree of risk; it is unavoidable and not within the direct control of the financial institution. However, accessing the risk and incorporating the risk level as part of the decision process is an integral part of doing business.
With the economic downturn and market saturation, financial services institutions find themselves in an increasingly competitive and challenging marketplace. Strong risk management practices are a critical driver of profit and, in some cases, have proven to be the difference between a company posting a profit or a loss. While managing risk is a core competency for many financial organizations, there is room for improvement in most. Managing risk can take many shapes, including new account credit policies, high risk account management, collections strategies, pricing and authorization policies.
The fact that risk management is critical is not in question. However, the question to be answered is what impact it can have on profit. This vision and strategy document will review the impact it can have on profits, how it can impact profits and several strategies to utilize risk management as a profit driver.
Request the full position paper
A Strategic Framework for Improving Loan Approval Rates
The challenge that all marketers face in acquiring and retaining "the right" new customers is a daunting one. With the continued commoditization of loan products and the widespread acceptance of scoring and automated lending programs, loan marketers face some fierce competition. It is not enough to have the lowest rates, innovative products, or advanced marketing strategies these days. Loan marketers need to make sure that once they have a customer’s attention they don’t inadvertently loose an opportunity by making a credit decision based on inaccurate and/or limited information.
By applying the basic principles of the strategic framework outlined in this white paper, progressive financial service companies can gain a competitive advantage by identifying creditworthy customers who may be slipping through the cracks. Allowing lenders to proactively identify and resolve potential weaknesses within; prospect targeting criteria, manual credit review criteria, credit policies, and line assignment / loan amount policies and ensure that they are getting the maximum return on their marketing program investments (ROMI).
Progressive financial service companies that are prepared to invest the time and effort required to fully optimize their new customer acquisition programs, will gain the type of competitive advantages that were only available to a select group of lenders before the widespread acceptance of scoring and automated lending processes.
Request the full position paper
Another Approach to Managing High Risk Customers
With the sustained economic downturn of the past few years, bankcard issuers are seeing an increase in delinquent dollars coupled with a general decrease in overall collection rates. This trend makes it increasingly critical that companies take a more proactive approach to managing their high risk current and early stage delinquent customers that are "At Risk" for a prolonged period of non-payment, which for the purposes of this document is defined as falling behind by two or more payments.
Using improved modeling and customer management strategies to target "At Risk" customers, progressive financial service companies can reduce credit losses by decreasing their portfolio’s overall "At Risk" exposure levels and by helping customers before it is too late. By proactively establishing contact with these customers before they reach their highest stress point, companies can work with them to identify potential internal and external options that will help them through an often confusing and difficult time. This approach will help companies reduce delinquency in the early stages, and that is critical because customers who historically roll to more than two payments delinquent, are 50% more likely to charge off than those customers who do not. More importantly, they can prevent full utilization of the customer’s credit line by proactively reviewing "At Risk" current customers at pre-defined utilization levels, thereby reducing the overall delinquent dollars entering collections.
Progressive financial service companies will remove the limitations of traditional collections processes that require a customer to reach a certain level of delinquency before actions can be taken and will instead focus on a customer’s current financial condition to determine the most appropriate course of action needed to reduce future losses.
Request the full position paper
The Future of Collections Management
With recent changes in the economy, new consumer technology, and increased competition in the maturing credit card market, managing account receivables is becoming more of a challenge. Bankcard issuers are seeing an increase in delinquent dollars and customer attrition while there has been a decrease in new accounts and applications. This increasing trend is making it more critical that companies become innovative in their approach to collections and recovery.
This changing environment, coupled with the new business paradigm focused on total customer relationship management (customers deciding when and through which channel they will communicate) has driven financial service companies to embrace new technologies. Collections channels of the future include the internet self service, email, outbound interactive voice response units, traditional call centers and direct mail.
Progressive financial service companies will take their traditional collections operations and move them towards a financial advisor model using these new technologies coupled with customer focused strategies.
Request the full position paper
|
