Over the 6 month launch period the acceptance rate was barely 25%, significantly below the 65% expected. A heated board room debate ensued between Risk and Marketing as to where the fault lay. Creditinfo were requested to provide independent evidence to understand the situation.


Creditinfo used its BENCHMARKING service to compare the new portfolio applications to a bundle of competitors identified by the lender as those working in a similar segment. The credit bureau score was used as a consistent and independent measure of risk across all institutions. The credit profile of applicants in the lender ad the benchmark group was mapped and compared. A comprehensive report was prepared which was presented to the board in a workshop environment.


The Creditinfo bureau score displayed a clear difference in the distribution of the new lender and the market players. The new lender had attracted a very high risk segment of the population and the risk department had been correct to apply a high reject rate.

The Marketing team were advised on how using portfolio screening they could better target existing customers. The demographic profile of the low risk customer it had attracted were incorporated into new promotional campaigns.