Increase profitability with credit risk management and analysis

Assess the creditworthiness of consumers and commercial organisations to find opportunities for growth, reduce credit risk, and minimise defaults and losses.

Analyse key data points, including credit scores, income estimation, current account turnover, employment history, cash flow, profitability, and economic forecasts that will allow you to gauge the risk of providing credit and safeguard the profitability of your lending portfolio.

Consumer credit risk

Use the latest credit and affordability data to minimise risk and maximise opportunities by accurately analysing the creditworthiness of consumers now and in the future. Combine the best of bureau and open data with our economic forecasts and analytical software to provide essential insight on consumer and business risk. Understand your customers credit consumption and capacity to afford further credit. Identify opportunities for growth without increasing risk to your business.

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Young couple applying for credit
Smartly dressed woman credit data modelling

Credit data, scores, affordability metrics

  • Use the latest credit data and scores inc. BNPL transactions, current account turnover, digital payslips and Open Banking to better inform your understanding of risk.
  • Apply the latest credit analytics and machine-learning techniques to improve the accuracy and predictiveness of your credit models.
  • Use our economic foresight to help you identify emerging vulnerabilities to inform credit risk.
  • Identify, monitor and remove bias from credit decision models to accept more customers and improve customer experience.
Related links

A guide to credit risk scoring in a fast-moving market

How do you determine risk from opportunity right now?

How is the cost-of-living crisis really affecting your customers?

Solutions for credit data and affordability

Delphi scorecards simplify complex lending and credit data, allowing you to make lending decisions.

Delphi for New Business

Experian's Affordability Passport offers the highest level of personalised affordability and is fully configurable to include or exclude credit data.

Affordability Passport

Man in an office assessing credit scores

Credit portfolio risk management

  • Understand the performance of existing customers and identify emerging risk.
  • Use your analysis of customers and their consumption of credit to identify opportunities for growth and inform product development.
  • Monitor the impact of changes in the economy on the health of your portfolio. Use our bureau and affordability insights to proactively manage customers to ensure they can meet their financial commitments.
  • Let our economic foresight inform your scenario analysis and development of your credit strategy to mitigate future risk.
Related links

Changing risk profiles across your portfolio

Solutions for credit portfolio risk management

Adopting best-practice protocol and associated risk models will help identify stresses and sensitivities within your portfolio and develop accurate loss forecasts.

Credit Portfolio Risk Analysis

Arms you with the latest market, economic, credit, competitor and customer insights, helping you better understand what’s going on, adapt to change and create significantly more successful strategies, faster.

Ascend Market Insights

Woman assessing her customer's credit portfolio

Assess credit eligibility and creditworthiness

  • Identify and pre-qualify a customer’s eligibility for credit before they apply to deliver a better application experience and reduce risk.
  • Match the right products, to right customers to improve acceptance rates and avoid application drop-outs.
  • Deliver better outcomes for customers and avoid them falling into debt by providing products and services they can afford throughout the life of a loan.
  • Improve financial inclusion and access to credit by matching Open Banking with a customer’s credit history to boost their credit score.
  • Enable access to affordable finance for marginalised customers and the under-served.
Related links

Why data and automation are key to commercial affordability success

Feeling the squeeze: A consumer view on the cost-of-living-crisis

Solutions to help assess credit eligibility

Create a swift, seamless application process for pre-qualified customers, by showing them the products they’re eligible for that helps them access affordable credit, fast.

Eligibility

Discover how to determine a prospective customer’s financial status so you can display pre-approved products and services.

Pre-qualification

Young couple applying for credit on a laptop

Credit risk forecasting and benchmarking analysis

  • Gain a better understanding of your market performance, benchmark this performance against your competitors using the latest data and insight from the UK’s largest credit bureau.
  • Test and identify opportunities for innovation and growth. Better inform your business planning using our latest insight and forecasts.
  • Monitor credit trends to improve your understanding of credit consumption and more accurately inform your assessment of capital adequacy.
  • Identify emerging risk to plan and respond effectively, ensure financial resilience and safeguard the future of your business.
Related links

Stress testing solutions for your business

Scenario modelling, stress testing and IFRS 9 – updating in line with a turbulent economy

Solutions for credit risk forecasting

Ascend helps you make smarter business decisions. Unlock your advantage, grow your business and serve your customers better with powerful insights made simple.

Ascend

Adopting best-practice protocol and associated risk models will help identify stresses and sensitivities within your portfolio and develop accurate loss forecasts.

Credit Portfolio Risk Analysis

Further reading on credit risk management

Get in touch

We can tailor our consumer credit risk solutions to meet your business needs. Let’s talk.

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Commercial credit risk

SME customers want fast onboarding, digital lending decisions and 24/7 services. Commercial lenders need to implement and improve digital onboarding journeys to meet this need and grow. However, with rising delinquencies there is also a need to balance risk. New regulations and data-sharing requirements drive greater choices for SMEs in commercial lending, increasing competition. The current business landscape is volatile. Attracting quality customers is essential to mitigate risk and increase revenue. Assessing affordability is key to managing risk while offering fair, responsible lending. The cost of SME lending can be high. Automation and better risk decisions present a huge opportunity to lower costs and grow your portfolio. But neither need be a trade-off. Both are possible with onboarding from Experian.

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Business owner applying for credit over the phone
Colleagues working on a new credit strategy

Traditional models are being challenged

Typically, portfolio risk is managed through a combination of risk assessment at onboarding and pricing to reflect that risk. However, the models and assumptions that were being applied pre-COVID-19 may not provide an accurate picture now, particularly in at-risk sectors and regions where many businesses that would previously have passed onboarding are facing extreme stress.

We believe the answer lies in an increased frequency and depth of data. 

  • Understand changes at a macro, full portfolio level, as well as at an account level. 
  • Access the right information at the right time to make decisions in the best interests of the customer.
  • Combine your own customer data with our Commercial Credit Bureau stress metrics to analyse your portfolio at a summary level and derive actionable insight.
Related links

Monthly Credit Index Report

Solutions to challenge traditional models

Gain a multidimensional and robust view of your customers, allowing you to make more informed, accurate, and faster decisions.

4D Credit

The fundamental credit risk engine score, more inclusive and with more predictive power than ever.

Commercial Delphi Generation 6

Woman in an office assessing credit stress indicators

Identify stress indicators and react quickly

Despite the difference in the way sectors and regions are affected, no two lending portfolios will be impacted in the same way. Businesses will respond differently: some may have more cash reserves, while others may be better able to adapt. A sector-based segmentation is unlikely to be accurate or actionable.

  • Monitor attributes indicating increased financial stress for early identification and to minimise losses.
  • Alerts based on key stress indicators for immediate notification.
  • Highly-configurable alert triggers, sensitive to changes like risk score drop, County Court Judgement (CCJ), or director change. 
  • Understand portfolio-level changes and identify stress indicators at an account level.
Related links

How do you identify early signs of stress, to accurately assess the commercial viability of new and existing customers?

Solutions for identifying stress indicators

Get a comprehensive view of your existing portfolio, and how you benchmark against competitors.

Commercial CAIS Insight Dashboard

Make the best credit decision at the point of customer application calculated in real time, delivered through a variety of online systems.

Commercial Risk Scores

Woman applying for credit on her mobile phone

Smooth out onboarding to manage more applications

  • Digitise onboarding processes to process applications faster and at scale.
  • Smooth the onboarding process and access data to manage increased applications effectively, even without changes to the customer journey.
Related links

Customer digital onboarding white paper

How the Right to Work Check App has streamlined our onboarding process

Digital onboarding: where some lead, many others need to follow

Solutions to help smooth out onboarding

Bring together multiple data sources into a single, consolidated view of a customer that helps reduce risk, increase revenue, and create competitive advantage.

Commercial Acumen

BusinessIQ reports help you assess the creditworthiness of potential customers, suppliers and existing trade partners.

BusinessIQ Reports

Woman managing all aspects of credit risk on her tablet

Keep all capabilities in one place

  • Our specialists understand the commercial market and engage regularly with major players in SME lending across marketing, data, software, KYB, and Fraud Solutions.
  • Multiple capabilities under one solution for easy implementation and management.
  • Commercial expertise and engagement with major players in SME lending across various areas.
  • User-friendly, user-controlled platform for advanced testing, building, deploying, and monitoring decisions and strategies with no IT set-up costs. 
  • Experian are the world’s leading information services company, with 125 years of experience in credit data and 30 years within risk-scoring models.
  • Experian heavily invest into innovative data like Management Accounts and Open Banking to help you make more effective decisions.
Related links

Why partner with Experian for Decisioning?

8 reasons to choose Experian for your decision-management and automation

Young couple applying for credit on a tablet

Improve financial inclusion and affordability

Financial inclusion ensures that all individuals and businesses have access to affordable credit, loans, and repayment schemes. By improving your financial inclusion, you enable customers to access fair and affordable finance options.

Affordability solutions

How well do you know your business customers? The better you understand them, the better you can help them.

Commercial Risk Scores

The fundamental credit risk engine score, more inclusive and with more predictive power than ever.

Commercial Delphi Generation 6

Woman looking out of the window holding a mobile phone

ESG and credit risk for lenders

  • ESG (environmental, social and governance) assessment linked to climate-related risks: lenders must report and act on climate change and carbon emissions.
  • Accurate emission estimates and carbon footprint for portfolio customers.
  • Target greener products to reduce carbon emissions based on the carbon footprint of individuals and businesses in the portfolio.
  • Readily accessible data on greenhouse gases and emissions from UK SMEs enables development of environmentally-friendly lending agreements and greener practices. 
Related links

What are climate and ESG risks and how can lenders and insurers reduce them?

ESG and credit risk solutions

Get a more accurate, actionable view of climate risk in your SME portfolio with individual Greenhouse Gas (GHG) emissions and ESG profiles for every UK SME with Experian ESG Insight.

ESG Insight

Further reading on commercial risk

Get in touch

We can tailor our commercial lending risk solutions to meet your business needs. Let’s talk.

Speak to an expert

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Let's talk. Experian can support your business needs.

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