Consumer Credit Risk Management

Expert solutions to meet risk management, compliance and strategic planning needs.

Moody’s Analytics consumer credit analytics solutions enable you to assess performance, estimate losses and anticipate risks and opportunities, by correlating lending behavior with current and future economic conditions. We cover the full spectrum of consumer lending risk management. Our solutions provide the foundation to enhance your decision making at every stage of the business cycle.

Leverage a comprehensive approach to answer key questions such as:

  • How can I develop loss forecasting models to comply with CECL or IFRS 9?
  • What do my lifetime losses look like under weighted scenarios?
  • How do I meet regulatory requirements for stress-testing?
  • How will policy adjustments and business cycles impact my profit and losses?
  • How do I localize marketing to maximize returns while managing risks?
  • How do I handle future losses while under multiple merger and acquisitions?

We provide:

  • Better grasp of risk drivers, such as regional/industry dynamics and business decisions.
  • Deeper view of quality at origination, and business/ life cycle components of loss.
  • Enhanced insight from integrated economic data, forecasts and scenarios.
  • Better view of losses under trusted economic forecasts and scenarios.
  • Improved confidence from fully documented and transparent solutions.

Applications

  • Expected Credit Loss Estimation and Impairment Calculations
  • Stress Testing & Scenario Conditional Projections
  • Benchmarking
  • Origination & Scoring
  • Profit & Loss Forecasting
  • Strategic Planning & Investment Management

Key Features

  • Integrated macro and regional economic data, reflecting the latest conditions.
  • Monthly updated economic forecasts and stressed scenarios.
  • Forecasts of more than 40 credit bureau attributes.
  • Transparent methodology and detailed documentation.
  • Flexible platform with multiple ways to visualize and export data.
  • Models backed by expert economists and consumer credit analysts.
  • Superior client services and support.

Coverage

  • Auto, Bank Card, Mortgage, Home Equity, Personal Loan, Student Loan
    • Delinquency Rates
    • Future Volumes
    • Interest/Fee Income
    • Originations
    • Prepayment
    • Probability of Default (PD)
    • Loss Given Default (LGD)
    • Exposure at Default (EAD)
    • Recoveries
  • Portfolio level: Capture broad sensitivities of performance to economic events.
  • Vintage-cohort level: Identify segment-level risks within portfolios, while maintaining model stability.
  • Loan level: Identify granular behavior, while controlling for individual account-level heterogeneity.