Credit Line Optimization

Challenge: Credit Line Optimization is an often overlooked way for banks to limit losses on defaulting borrowers. Banks deal with difficult decisions which center around the balance of providing additional lines of credit to prevent default and raising their potential exposure at default. Banks need a line monitoring system which ties directly to borrower’s default characteristics to better access how to manage outstanding credit lines.

Solution: ERisk provides a comprehensive solution to credit line optimization. We analyze customer behavior prior to default along with financial and non-financial information to develop predictive models which allows banks to better manage outstanding credit lines. These models provide early warning indicators for troubled accounts which can be dynamically applied in credit line management.

Benefits: A credit line optimization project will help you identify troubled accounts and understand the key drivers that signal when you need to change credit lines for a new or existing customer so that you can optimize potential future exposures.

For more information, please contact us.

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