Loading...

Apply optimization to comply with the Credit Card Act

Published: November 30, 2009 by Guest Contributor

By: Wendy Greenawalt

Optimization has become a “buzz word” in the financial services marketplace, but some organizations still fail to realize all the possible business applications for optimization. As credit card lenders scramble to comply with the pending credit card legislation, optimization can be a quick and easily implemented solution that fits into current processes to ensure compliance with the new regulations.

Optimizing decisions
Specifically, lenders will now be under strict guidelines of when an APR can be changed on an existing account, and the specific circumstances under which the account must return to the original terms. Optimization can easily handle these constraints and identify which accounts should be modified based on historical account information and existing organizational policies.

APR account changes can require a great deal of internal resources to implement and monitor for on-going performance. Implementing an optimized strategy tree within an existing account management strategy will allow an organization to easily identify consumer level decisions.  This can be accomplished while monitoring accounts through on-going batch processing.

New delivery options are now available for lenders to receive optimized strategies for decisions related to:

  • Account acquisition
  • Customer management
  • Collections

Organizations who are not currently utilizing this technology within their  processes should investigate the new delivery options. Recent research suggests optimizing decisions can provide an improvement of 7-to-16 percent over current processes.

Related Posts

One caveat of optimization is in order to choose an optimal decision you must first simulate all possible decisions.

Published: November 17, 2020 by Peter Accorti

Learn about some specific Experian solutions that are especially timely for lenders strategizing their response to the COVID Recession.

Published: September 2, 2020 by Jim Bander

How can lenders make optimized decisions when things are changing so quickly and when so many things are unknown? The answer lies in analytics.

Published: April 14, 2020 by Jim Bander

Subscription title for insights blog

Description for the insights blog here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Categories title

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Subscription title 2

Description here
Subscribe Now

Text legacy

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source.

recent post

Learn More Image