+ CREDIT RISK MANAGEMENT


We can take some of the risk out of the risky world of consumer lending.


When you lend money and provide credit, you put yourself in a vulnerable position. Smart lenders minimize their risk by knowing exactly what they are getting into, and how predictable they can forecast activity on the loans.

That’s where Magnify can help. Our empirically driven Credit Risk Management team is a great resource when it comes to the process of approving, pricing, and underwriting consumer loans. We strategically examine the identification, quantification, and mitigation of the likelihood and severity of credit losses.

All of which helps ensure that loans are booked, priced, and collected in a systematic and profitable manner. Cash flow is predictable and accurately forecasted on a regular and consistent basis.

Just the way you like it.

  • Credit Risk Management Tools We Employ.

  • Acquisitions Scorecards
    The credit lifecycle begins with making the right loans to the right applicants. We develop and implement models to evaluate the risk of loan applications. We deliver an acquisitions risk scorecard to reduce credit losses and increase revenue.
  • Auto-Approve and Auto-Decline Strategies
    When scorecards and decision trees are applied during the loan acquisition process, many applications can be approved (or denied) without the intervention of a credit analyst. Our consultants can apply these technologies to develop a set of automatic decision strategies for you.
  • Behavior Models and Collections Strategies
    As a natural progression of the credit cycle, some loans become delinquent and go to default. Lenders have to collect these loans in a targeted and efficient manner. We have developed a variety of loan servicing models for all stages of delinquency/default: early-stage, late-stage, repossession, and recovery. We can also employ creative analytical techniques to link loan servicing models to optimal collections strategies, loss reserving, and collector staffing algorithms.  
  • Pricing Models and Strategy
    Magnify specializes in developing models aimed not just at predicting risk, but also finding the interest rate that will compensate for the risk and the loan parameters that will sufficiently mitigate it. We call it “fitting a contract to a customer.”

View our presentation, "Logistic Modeling with Applications to Marketing and Credit Risk
in the Automotive Industry," below.

To learn more about this topic, visit our partners at    Loan Science

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