For most in the card issuing business, credit underwriting has never been as challenging as it is today. The risks are different, as customer payment behavior has changed. Line assignments and interest rates are getting tied to product bundling or the depth of the bank relationship. In today’s economy, the variation in local economic factors such as home value erosion and unemployment is likely to also play a role in credit risk performance.

Profit Technologies has assembled a team of resources with more than 75 years’ combined experience in dealing with these challenges for major credit card issuers and our team is experienced in building credit risk underwriting systems in the United States. We understand the data that is needed to build the system (bureau data, demographic data, performance data and transaction data), the statistical modeling techniques that are likely to be most successful, as well as cash flow modeling and optimization techniques that need to be followed so this can become an ongoing best practice for the client organization.

In our experience, credit risk underwriting has improved approval rates while simultaneously lowering overall loss rates. It has also been effective in optimizing credit line assignments and risk-based pricing, thereby improving profitability.