- Challenge: Recover from potential bankruptcy, improve weakened customer relationships, and strengthen the brand.
- Solution: custom behavior model
- Results: By using a behavioral model to govern account management decisions, La Polar has improved and simplified the way it makes decisions and manages risks. Strengthened relationships with customers have led to increased lifetime value and increased brand loyalty and sales.
Fighting Fraud: By creating a behavior model with FICO, La Polar’s expected losses will be minimized by 10-15% in one year and profitability improved. Plans to implement 13 additional models to support continued growth anticipates an increase in 5% on sales and a 10% drop in net delinquencies.
Dealing with Digital Interruption: Analytical models will be an important part of a change in La Polar culture as it embraces the opportunities of the digital age, including the implementation of a new in-store biometric technology that allows customers to pay with a fingerprint. And it might not stop there: Beyond the financial arm of the company, the retail arm has witnessed the difference that FICO models have made and that area may be the next target for improvements.
Source: FICO Press Release