Incorporate iterative performance analytics into your strategy to determine the effectiveness of customer-centric approaches. Predict how building in new segments will affect your risk or test out the viability of new business lines. Measure how CLV changes if you impose dynamic credit limits based on customer behavior or if you add more touchpoints to the customer journey. Regularly monitor portfolio performance and key metrics, such as default rates, repayment rates, and customer satisfaction. Go beyond portfolio monitoring and perform scenario analysis and stress testing for broader insights. Curious how your portfolio would perform in a recession? How about in a growth period? Explore likely impacts of different economic conditions and use insights from stress testing to develop strategies for mitigating potential risks. This allows your business to be truly future-proof. Go beyond portfolio monitoring and perform scenario analysis and stress testing... to be truly future-proof.
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