Solutions / Preventing loan defaults

Predicting and preventing loan defaults with proactive credit risk management

Solve your customers’ debt problems ahead of time

Detect changes in clients’ income

Monitor behaviour of clients and their households

How can you move from reacting when customers default, to proactively anticipating defaults and solving the problem in advance?

Do you already have a vast number of loan clients, with many of them potentially in danger of being unable to repay? Do you react to their situation only after they miss their repayment date?

Wouldn’t it be better if you could predict these missed payments? If you could “see into the future” and know in advance which clients are likely to default?

Imagine being able to check the credit quality of each individual customer on an ongoing basis. It may seem like a challenge, but it can be done – and almost in real time.

Our big data solution monitors customer behaviour and gives you a customised early-warning system. This means that customers with financial difficulties will be flagged up sooner rather than later. So you can address issues before they arise – and before a customer defaults.

This is PROACTIVE credit risk management. It enables you to intervene at the earliest opportunity so that you have more options for remedying the situation and avoiding losses.

Our approach will help you predict future defaults

How do you predict defaults?

Enhance your scoring by using predictive models and move from reactive to proactive credit risk management.

How do you recognise that a debtor has lost or changed their job?

Apply our salary detection tool to be notified of each individual client’s job and salary changes.

How do you detect that a client has significantly changed his or her spending habits?

Monitor your client’s transactions in real time for suspicious behaviour like overspending or increased withdrawals.

How do you identify the behaviour of a debtor and their whole household?

Take advantage of our social network identification so you’ll know who belongs to a household and be able to monitor their financial behaviour as a whole.

How do you detect a client in the debt spiral?

In-depth cash-flow analysis of transactions can reveal clients who cover repayments with other loans.

Our Solution

Monitoring spending

Be aware of your clients’ increased spending and cash withdrawals as soon as this occurs. Our real-time monitoring system uses behavioural models to identify unusual overspending. When the system detects spending deviations, you’ll receive prompt alerts.

Salary detection

Our salary detection tool processes transactional data and notifies you of your clients’ work-life events. Identify clients’ regular sources of income, wages or bonuses. Detect their pay cuts and raises. Find out about job changes plus employer profiles and their wage policies. See income stability for proactive risk scoring.

Household identification

Where clients are married, it’s simple to use that information and see that both parties share a family budget. But our unique social scoring engine can detect other clients who belong to the same household – family members, fiancés, people in long-term relationships or friends and flatmates. This means you can assess the credit risk of household members together.

Predicting defaults

We use complex machine-learning models to process clients’ historical data and transactions in combination with their social scoring. This allows us to determine typical features and patterns of behaviour that lead to a future inability to make debt repayments. Our solution will assess the probability of future default for each client.

How it works

credit risk monitoring solution description - machine learning model for banking

Related success stories

customer loan consolidation solution for banks by profinit big data for banking
Success Story

Major European Bank Competitor loans consolidation

How Profinit helped one of the major European banks detect twice as many loans with competitors – and approach more clients to consolidate their loans – while remaining “the most customer-friendly bank”

Data-driven loan offers

Lending Data-driven loan offers

How machine learning can help you make data-driven offers to the right customers at the right time – and predict loan acceptance

smart pricing for banks - ai solution by profinit big data for banking

Smart Pricing Profitable product offers

Using smart pricing to create profitable loan offers




Important Note

We respect your private and personal data, and guarantee its safety. You agree to share your private information with Profinit, for the purpose of being contacted, and you are aware of the right to withdraw your consent at any time.