Credit & Risk Services

The financial industry is experiencing an overwhelming wave of delinquency and charge-offs across the majority of lending portfolios. Delinquencies are rising faster than portfolio growth, and collections performance is faltering.

In risk management, organizations require new, more effective scoring models to decide which new customers they can and should offer credit to, and which existing customers need early intervention or adverse actions.

In collections, debtors and defaulters – once a fairly monolithic group with well-understood patterns and behaviors – are now varied, segmented, and more opaque. As the debtor base becomes more atypical, collections operations need differentiated and targeted treatments and strategies powered by new technology, analytics and collector effectiveness techniques.

Opera Solutions offers new approaches across the credit-to-collections cycle:

• Risk models that predict more accurately in volatile environments
• New ways to identify and weed out latent risk in portfolios
• Innovative strategies to improve right party contact
• Intelligent, segmented treatment strategies to optimize collections effectiveness
• New ways of attracting, training, and retaining high-performance collectors
• Next-generation analytics to identify bust-out and skimming earlier and more accurately
• New approaches to legacy asset analysis that quantify the riskiness of complex portfolios at an individual property or debtor level

OPERA EXPERTISE AND FOCUS AREAS:  CREDIT/COLLECTIONS CYCLE


The Opera Difference:  Deep Operating Expertise Coupled With New Analytics. Opera works with a wide range of card issuers and banks, and has dramatically improved their risk models and collections performance with new “next-generation” analytic approaches:  nonlinear, multivariate modeling techniques, the application of machine learning disciplines, and the inclusion of a broader range of data such as individual Real Estate risk profiling.

Our deep knowledge of the collections operational environment enables smooth implementation of analytics and process improvements that work in the real world. Because we know that collector talent is truly where the rubber meets the road, Opera’s Sales Practices Applied To Revitalize Collections (“SPARC”) program uses proprietary screening methods to identify top salespeople, and then follows through with innovative training curriculum, compensation strategy, and a talent management approach. The result:  dramatic, consistent outperformance versus conventional collections operations.

Once we develop the models and segmentations that identify what to do and whom to target, we develop the browser-based interfaces and the training and monitoring programs to bring these strategies to the collectors’ desktops. Collectors are given browser-based treatments that include, for example, a targeted set of questions as well as the optimal settlement strategies and treatments appropriate for that particular customer.

Our capabilities, applied across the credit-collections cycle, can significantly reduce write-offs by more than 10%; that is, for every $1B in loss provision, we can potentially strip out $110-$135MM in write-offs:

	Click on the links below for some of our recent credit, collections, and risk successes.     Using Advanced Analytics to Develop New Risk Scoring Model   Improving Early Intervention Strategies Optimizing Settlement Strategies   Integrating Analytics and Operations Across the Credit Cycle Increasing Collector Productivity Through SPARC (Sales Practices Applied To Revitalize Collections)   Leveraging Real Estate Data to Enhance Predictive Performance