Maximized Portfolio Performance When you’ve optimized your processes for efficiency and cost, you’re ready for the next level: maximizing your portfolio performance and increasing customer lifetime value (CLV). Leverage data analytics to gain insights into borrower behaviors, trends, and overall portfolio performance. Use data to make informed decisions on credit limits, pricing, and risk management strategies. Separate your product lines to explore their performance individually. Are you using a catch all approach? Consider creating separate strategies for them all if so, based on your AI/ML-powered performance analytics. The BNPL product for e-commerce may be performing well but the one for auto repairs may need an adjustment in risk appetite or application processing to perform at its peak. You may also need to expand or reduce your customer segments. If you’re a global provider, you will likely have different strategies and processes already in place. Use AI/ML to help optimize your different customer bases and ensure you’re targeting the right customers in the right areas. Are there certain segments defaulting at higher rates? Are there low risk segments you could be reaching that you aren’t? Are there high loan value segments it’s worth leaning more into risk to capture? Optimize lending strategies based on performance data and identified areas for improvement.
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