Our Services
Add a credit score component to
your bounce protection program to reduce losses and meet regulatory
standards
Many institutions implemented bounce protection programs
that simply provided checking account holders with a flat amount such as
$500. These programs were effective at generating revenues at the
expense of higher than necessary losses.
Initially revenues overshadowed losses but as programs
matured and regulators issued rules to manage these programs it has
become clear rational and effective selection criteria needs to be put in
place.
A properly designed credit score component can
effectively meet these needs both from a regulatory and risk
perspective. KW Financial Solutions
will provide the credit score component necessary to manage bounce
protection programs to reduce losses and meet regulatory
needs.
We will provide one time flat fee pricing.
- One time flat fee pricing - often less than one month's
losses
- We use the same score set you use for retail lending so
you have a frame of reference to risk
- Loan score rules WILL NOT work for bounce protection
programs
Migrate to a new score set or to risk based lending/tiered pricing:
The switch to a new score set or the transition from a
conventional lending program to a risk based lending/tiered pricing process is
complex and closely monitored by the examiners. The proper design of all
the various elements is critical to its overall success. KW Financial
Solutions takes the mystery out of custom designing and
implementing the risk based lending/tiered pricing process. If you
are changing your process to risk based lending you need our expertise. We
will provide:
- An initial phone consultation with lending expert Ken Williams
- A proposal showing what we can provide to make the transition seamless
- Detailed costs and benefits
- Ways to customize so you only use us for the elements you need
- Program rubrics to monitor and manage the process
Revalidation of existing risk based lending
programs:
Regulators expect you to revalidate your risk based
lending/tiered pricing process every few years. This makes sense since
conditions change, score ranges within tiers become stale and you no longer are
maximizing your returns through the proper risk/reward trade off. KW Financial
Solutions will revalidate and revitalize your existing
process. We customize to your needs so if all you need is a revalidation
of cut off score ranges we can do that for you. We will provide:
- A phone consultation with lending expert Ken Williams
- A recommendation of the areas you need to revalidate
- Onsite meeting for the initial review of the existing process
- Increases in approval percentages you can expect
- Program rubrics to monitor an manage the process
- On site meeting to implement the recommendations
Enhancement of the criteria in application
processing systems to make them more efficient
Application processing software reduces redundant tasks and
makes the loan process more efficient. Unfortunately many user options
within these systems are not set to their peak efficiency to manage losses and reduce process
time. KW Financial
Solutions will provide the changes to the user inputs that will
increase the percentage of applications that will be approved without officer
review resulting in faster processing and reduced expenses. We will
provide:
- Initial phone consultation with Ken Williams
- A proposal for the efficiency enhancements in your app processing system
and costs
- Onsite meeting for the initial review of the existing process
- Increases in automated decisioning you can expect
Upgrade an outdated score set to a more modern and
effective score set
You would not use a 9 year old computer but if you
use Beacon,™ Empirica,™ or FICO™ you are using data that is up to 9
years old. Scoring like any technology becomes outdated fast. Even if you
do not change credit reporting companies, upgrading to the latest version score
set changes the risk level of a score. The risk of loss at 660 for example will
be different for the old score set vs. the new score set even if it is within
the same credit reporting agency. KW Financial
Solutions will provide you with a conversion chart that will show
you the new score that corresponds to the old score.
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