Credit Card Risk & Collections Analysis

Consider the Plus Factor

Credit card portfolios have enormous potential to enhance member satisfaction and credit union profitability but they must be vigilantly managed to identify and reduce financial risks.

Advisors Plus consultants can provide comprehensive, data-driven analyses of your credit union's underwriting and collection practices, including historical delinquency rates, charge-off and recovery, benchmarking to peer credit unions, credit risk and staffing practices.

Our Advisors Plus consultants combine hands-on experience with a proprietary database of best practices and benchmarks to formulate customized recommendations to improve credit card portfolio performance.

For example, Advisors Plus worked with CFE to conduct several proprietary vintage analyses that identified certain subprime segments of its account base that were negatively impacting the entire portfolio.

Advisors Plus recommended segmenting those accounts into a secured portfolio and changing future underwriting criteria. Adopting these portfolio segmentation recommendations led to CFE's adoption of risk-based pricing, which set the stage for CFE’s enhanced marketing success.

Come to the Plus Side

Before making a site visit, Advisors Plus consultants start with a collections questionnaire to understand your current collections practices and policies.

Follow-up onsite meetings then dive into specific data to deliver:

  • Detailed benchmarking of delinquency, charge-off and recoveries
  • A vintage analysis to provide insight into the credit quality of the portfolio and its impact on collections
  • An analysis of staffing and roll rates and their impacts on the portfolio