Stages of Business Maturitys
Advisory for Emerging Market Banks and Consumer Finance FOR ALL STAGES OF BUSINESS MATURITY
Start-Ups
Ability to Learn and Adjust Is Key to Prevent the Start-Up Challenges in Becoming a Financial Loss
Strategic Approach
- Set up a cost effective, agile, robust and flexible infrastructure
- Speed up the learning curve by leveraging combined Atlantic Management expertise in start-ups and in emerging markets
- Create mechanism and risk management practices to identify issues in early stages and make the quick adjustment
Tactical Approach
- Expertise transfer starts in day one of the consultancy by working closely to the management team
- Technology and infrastructure with minimal customization, parameter based and preference for pre-configured solutions; Speed prioritized over the ideal solution since from 80% to 90% of emerging markets risk system requirements are similar
- Day one risk policies and score models based on emerging markets experience
- Fraud prevention policies and procedures based on emerging markets fraud types and prevention best practices closely monitored and reviewed
- Align Risk, Product and Marketing objectives: risk control versus approval rates, innovative products versus proved ones but known to all, alternative distribution versus traditional ones
growth
Position Risk Management as Core Competence and Strategic Advantage for Growth
Strategic Approach
- Leverage the learning acquired in the start-up and take full advantage of the strong capabilities in place (decision engine, data analytics and others)
- Start the transition of risk decision to P&L based rather than losses based
- Speed up the learning curve by leveraging combined Atlantic Management expertise in start-ups and emerging markets
- Tap into growth opportunities, gain market share and keep risk under control
Tactical Approach
- Introduce high degree of segmentation, analytics and full conversion of the scoremodel from judgmental to empirical
- Continues review and adjustments of the credit origination policies, fraud prevention, collection strategies and action based on risk early indicators as well as more longer term vintage analysis
- Refinement of the risk tools and infrastructure to cope with high scale loan origination
Consolidation
Optimization of Profit by Balancing Risk and Reward Equation
Strategic Approach
- Risk, Product and Marketing functions converging in the customer relationship and portfolio management
- Full transformation of Risk decision into P&L basis
- Leverage the built knowledge to provide multiple products per customer and increase market share
- Expand market segment and explore innovative products and distribution channels with risk under control – "Dare to be Innovative"
Tactical Approach
- Streamline analytics bringing together Risk, Product and Marketing Communication functions in decision making
- Deep understanding of customers’ behavior leading to customized financial offers
- Development of “Big Data” analytics
Data and Model Driving Decision Making
- Development and/or validation of Loan Provision Models for "IFRS - International Financial Reporting System"
- Portfolio Valuation, Risk Planning and Losses Forecast
- Big Data and Advance Analytics
- Profitability Models (Risk & Marketing)
- Predictive Modeling of Customer Response
- Credit, Fraud and Collection Scorecards