Apply optimization to comply with the Credit Card Act

Published: November 30, 2009 by Guest Contributor

By: Wendy Greenawalt

Optimization has become a “buzz word” in the financial services marketplace, but some organizations still fail to realize all the possible business applications for optimization. As credit card lenders scramble to comply with the pending credit card legislation, optimization can be a quick and easily implemented solution that fits into current processes to ensure compliance with the new regulations.

Optimizing decisions
Specifically, lenders will now be under strict guidelines of when an APR can be changed on an existing account, and the specific circumstances under which the account must return to the original terms. Optimization can easily handle these constraints and identify which accounts should be modified based on historical account information and existing organizational policies.

APR account changes can require a great deal of internal resources to implement and monitor for on-going performance. Implementing an optimized strategy tree within an existing account management strategy will allow an organization to easily identify consumer level decisions.  This can be accomplished while monitoring accounts through on-going batch processing.

New delivery options are now available for lenders to receive optimized strategies for decisions related to:

  • Account acquisition
  • Customer management
  • Collections

Organizations who are not currently utilizing this technology within their  processes should investigate the new delivery options. Recent research suggests optimizing decisions can provide an improvement of 7-to-16 percent over current processes.

Related Posts

Optimization modeling provides actionable insights that drive decisioning, allowing businesses to achieve their marketing and growth goals.

Published: March 12, 2024 by Julie Lee

To stay competitive and engage high-value customers, you’ll need to optimize your customer acquisition process.

Published: December 19, 2023 by Theresa Nguyen

Discover the different options and routes you can take to improve your debt collection process, enhance decisioning and maximize profitability. Read more!

Published: May 24, 2023 by Laura Burrows