Just-in-time Decisioning for Collections with Decisioning as a ServiceSM

Just-in-time decisioning for collections
with Decisioning as a ServiceSM —
a Wells Fargo case study
Brad Bowland | Wells Fargo Education Financial Services
Curt Retz | Experian
Dave Coates | Experian

© 2012 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc.
Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified,
or distributed in any form or manner without the prior written permission of Experian.
Experian Public.

Today’s agenda

 Introductions and agenda
 The business opportunity
 Objectives and anticipated outcomes
 Project overview
 Cost / benefit analysis
 Wells Fargo EFS and Experian relationship
 How it works
 Key differentiators
 Summary
 Questions and answers

© 2012 Experian Information Solutions, Inc. All rights reserved.
Experian Public. 2

Introductions

Brad Bowland
Wells Fargo Education Financial Services
SVP Risk Management (EFS)

Dave Coates
Experian
Client Services Director

Curt Retz
Experian
Senior Account Executive

Experian Public. 3

The business opportunity

 EFS Risk Management sought a decision strategy engine
for account management and collections efforts
 A business rules management system for optimizing:
► Account-level treatments
► Cross-sell and retention
► Loss mitigation and recovery
 Strategically aligned with:
► Customer experience and simplicity
for unique customer treatment
► Operational transformation and efficiency
► Controlled business portfolio growth; reduced costs;
enhanced revenues

Experian Public. 4

Objectives and anticipated outcomes

 Quickly identify and execute on risk /
rewards in student loan portfolio growth
 Improve ability to respond to changes in
customer and business needs
 Improve efficiency and effectiveness of
collection, recovery and customer service
agents
 Minimize IT resource requirements

Experian Public. 5

Objectives and anticipated outcomes

 Evaluate and engage customers based
on their total relationship with Wells
Fargo
 Track strategy performance, improve
ability to make timely changes with
minimal manual effort
 Ensure compliance with centralized
management of account
treatment strategies

Experian Public. 6

Project overview
Description
 Implement an account risk management
decision engine
 EFS Risk Management responsible for business
rule development, testing, and implementation
 Hosted by Experian via Decisioning as a ServiceSM
► No hardware or software needed
► Uses existing BAU systems’ formats
and process flows
 Leverage existing Experian data security
and system architecture
 Vendor management consolidated
with Wells Fargo Consumer Lending Group

Experian Public. 7

Project overview
Benefits

 Improve customer experience
► Unique customer treatments
 Improve cross-sell, banker referral
and account retention
► Target pre-repay campaign efforts
 Improve strategy implementation cycle-time
► Reduce from 12 months to one month

Experian Public. 8

Project overview
Benefits

 Improve collection efficiencies
► 60% improvement cost / $1 collected
 Improve collection effectiveness
► 40% improvement in delinquency rates
 Reduced losses
► 25% improvement in net loss rates
 Improve scorecard deployment
► Avoid IT coding, saving $100,000 / scorecard
 Realizing an ROI = 20:1

Experian Public. 9

Project overview
Stakeholders

 Risk Management
 Collections
 Contact / Service Center
 Collections System Support
 Enterprise Security
 Enterprise IT
 Enterprise Vendor Management

Experian Public. 10

Project overview
Environment

 EFS was one of only two
consumer business lines
currently lacking back-end
decision engine capabilities
 EFS evaluated multiple (four)
competing solutions before
choosing Experian
 Other Wells Fargo business
units currently evaluating
legacy decision platforms

Experian Public. 11

Decisioning as a ServiceSM
How it works

Diagrams of the batch processing
environment
► Overall environment
► Automate strategy updates

Experian Public. 12

How it works
Production process flow
Wells Fargo EFS  150,000
legacy systems accounts
per day
SOR 1 SOR 2 Collections system
 End to end
DaaS Production < one hour
Daily secure file transfer Batch initiation script
at independent times  Hands-off
Combined
Trigger
operation
SOR 1 SOR 2 collections
file
Input
file
Input
file
file  Manual
intervention
available
Quarterly
EFS data
updated
credit bureau
database SOR 1  Audit and
quarterly data
DaaS batch
collection Data
file Integrity
host application
DaaS batch file
Production append process
Reports
Monthly
EFS data account
SOR 2
collection
updated performance file
monthly database
Strategy
management Operational
Executes EFS Decision agent
reports
maintained strategies

Experian Public. 13

How it works
Strategy update flow
 Installed at Wells Fargo Strategy
 Keeps change history Strategy
management
Deploy to production Strategy
 Local test environment file
design studio
(SDS)
 Multi-user support
 Audit and implementation controls

 Automated transfer Experian secure file
 Private and secure transfer process

Strategy
file
 Strategy file moved
Manual Automatic and
within the hour immediate
 Timeframe flexible
 Log produced and returned Production
environment
 Manual control available

Experian Public. 14

Key differentiators
EFS benefits from hosting with Experian
 Minimal Wells Fargo start-up or maintenance costs
► Avoid procurement of hardware and development
 Experian’s hosting experience
 Leverage existing connections
► Secure file transfer established quickly
 Audit and testing functionality included
 Leverage unique customer identifier for file transfers
► No SSN or other customer indentifying info needed
 Leverage account management refresh process
► Future use of Collections and Retention TriggersSM
► Integrate with real-time decisioning
 A partner committed to your success
Experian Public. 15

Summary

 Needed a decision strategy engine for
account management and collection efforts
 Utilize Experian’s Decisioning as a ServiceSM
platform with Strategy ManagementSM
► Leverages existing relationship, secure
connections, and vendor management
► Ability to implement quickly at minimum
cost
► Realize benefits while Wells Fargo
completes other integration projects

Experian Public. 16

Summary

Immediate returns:
► Improved customer experience
► Champion / challenger testing for new treatments
► Improving account retention and cross-sell
► Increased productivity of agents
► Reduced scorecard and strategy
deployment costs and timeframes
► Improve ability to meet new regulatory
and audit requirements
► Reduce loss and delinquency growth
Quick implementation through EFS and Experian partnership

Experian Public. 17

Questions and answers

Experian Public. 18

For additional information, please contact:
David.Coates@experian.com

Vision Expert Annex
Open every morning, afternoon and during session breaks
 Meet session speakers
 Gather information on Experian products and services
 Request research and complimentary materials
 Schedule one-on-one meetings with Experian experts

Experian Public. 19

May 6–9 • The Phoenician • Scottsdale, Ariz.

Experian Public.

Just-in-time Decisioning for Collections with Decisioning as a ServiceSM

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