April 22nd, 2015

Portfolio Management & Analytics  Services

The Value of Data & Analytics Driven Intelligence in  Operating Socially Viable Lending Portfolios

EEDE

20th

Banking Forum

Effective Data Capturing

We Capture Data from: 1. The Challenging

Greek Macroeconomic Environment

3Source: http://ec.europa.eu/economy_finance/publications/european_economy/2015/pdf/ee1_en.pdf 

Signs of growth appear in the 2nd

Quarter of 2014 

mainly due to an increase in customer spending 

and tourism income.

This is reflected on real GDP growth and 

Unemployment.

Forecast

ForecastForecast

Forecasts illustrated in these graphs are challenged as domestic

demand and private consumption are 

immobilized until agreement with its partner institutions is reached.

We Capture Data from:  2. The Volatile

Corporate Environment

4Source: http://www.imegsevee.gr/images/ereunes/febr_2015/parousiasi_ereuna_febr_2015.pdf

37% of Companies had losses in 2014. More than 60% had significant reductions in their Financials.

Over 50% of Companies saw a negative impact in their Turnover and Demand in 2014.

Around 39% had decreased their investments.

We Capture Data from:  3. The “Shocked”

Household Environment

5Source: http://www.gsevee.gr/meletes‐2/484‐eisodima‐dekembrios2014#επισυναπτόμενα

75% of households saw their income decrease

We Capture Data from: 4. The Daily

Banking Transactions

6Source: Piraeus Bank, Alpha Bank, Eurobank, National Bank of Greece

In 4Q14, there is a  significant drop of  Deposits

90€

billion in 4Q14 are  more than 90 dpds

16.5€

billion in  4Q14 are Forborne 

Loans

The Analytics Intelligence Value

Advance Analytics Promote Business Decision Making

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Simulation 

Modeling

Multivariate 

Regression &Segmentation 

Modeling

Data Analysis& Dashboard 

Reporting

PredictWhat will be my customer’s/portfolio value if I switch strategies?

ForecastWhat parameters affect my Customer/ portfolio performanceToday? What is likely to be my Future customer/ portfolio Performance?

UnderstandWhat is my customer/ portfolio value?How does my customer/ portfolio perform?What is its best performing aspect?Why does my customer/ portfolio perform in this way?

HIGH

LOW

Complexity

Return on Investment

What is the most effective action to maximize gains?

What mightAnd it is likely to happen

Monitor what is currently happening

Understand the business problem

Investigate the reasonof past performance

Data Driven Analytics Fuel change in Portfolio Management

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We Secure Socially Viable Offerings

Restructuring effort

Profita

bility

Marketing Promotions

“must incentivize and reward” customers

Recoveries

“must not lose” customers

Typical Bank’s Retail Portfolio Delinquency Profile

“must help” customers

Profitable: Reward, Up Sale and RefinanceForgotten: Improve offeringNot take ups : Skip from Offering

Somehow Paying: Encourage payments, Reward, Allow 

customized offeringsWilling but Unable: Allow customized seasonal or sector related 

offeringUnwilling ‐

Strategic Defaulters: accelerate actions – let go

Delinquent CustomersPerforming & very Early Delinquent Customers

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Advanced Analytics Experts and Machines Work Together: Τhis is Qualco’s Philosophy –

Augmented Intelligence

Our Augmented Intelligence Offering   in Banking Operations

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ADVANCED ANALYTICS METODOLOGIES, UTILISING CUSTOMERS’ PAST CREDIT

BEHAVIOR AND WILLINGNESS OF PAYMENT PREDICT FUTURE

CUSTOMER BEHAVIORS

AdvancedPrediction Tools

Dynamic Operational Segments

ANALYTICS DRIVEN SEGMENTATION TOOLS ALLOW

FOR EFFECTIVE TARGETING AND OPTIMISED OUTCOMES.

Tailor Made Solutions

APPLY THE APPROPRIATE SOLUTION TO EACH CUSTOMER

SEGMENT BY OPTIMISING PORTFOLIO MANAGEMENT

OPERATIONAL MODELS THAT TAKE INTO ACCOUNT

INDIVIDUAL CUSTOMER NEEDS.

Real Time Monitoring and Recalibration

ASSESS AND ANALYSE PORTFOLIO PERFORMANCE TO MAKE THE NECESSARY

ADJUSTMENTS AND CORRECTIONS THAT WILL

FURTHER IMPROVE RESULTS.