Like many organizations, FICO indicated Toyota Financial Services was looking for ways to achieve better outcomes from its collections efforts.
At the same time, FICO acknowledged it was critically important for the captive to demonstrate to its customers that the company values the relationship. They sought to help customers avoid repossession or credit impacts due to delinquencies and profitably grow their lending portfolio.
Included in new a case study, FICO describes how Toyota Financial Services applied a collection optimization-based approach to keep delinquent customers in their vehicle.
The study highlights how the captive generated these five results, including:
• Used statistical modeling, forecasting, predictive modeling and optimization to rapidly simulate multiple scenarios, and then deploy an optimal strategy into production.
• Segments customers based on risk, ensuring that the collection treatments are delivered individually, one customer at a time.
• Kept more than 6,000 drivers in their vehicles, while 1,500 customers avoided reaching a stage of repossession.
• Reduced operating expense and grew its portfolio by roughly 9 percent without adding collections headcount.
• Ties future lending decisions to its collections abilities, putting more customers behind the wheel of a Toyota.
“Collection optimization isn’t just for auto lenders. It can be used by any first- or third-party looking to improve collections,” FICO said.
Go to this website to download the case study or contact the company at firstname.lastname@example.org or (866) 350-3426 to learn more.