Content:

.Table of Contents

1. Core idea of the first edition

2. Five basic principles of consumer credit business management

3. Typical risk-income ratio-by-product division

4. Risk management principles with clear rights and responsibilities

5. Used to describe and define consumer credit business. > 6. product life cycle 7. basic business strategy of the company

8. main consumer credit products

9. excellent credit card competition questionnaire

1. pricing

11. customer behavior characteristics

12. target market-credit card

13. introduction to credit score

14. Method of setting score threshold

16. Simple goal of obtaining customers

17. Account approval process

18. Behavior score

19. Three types of people who are collected

2. Bank and financial company closure methods

Read the whole thing first. Find out what you are interested in (consider finishing the first three chapters tomorrow and the day after tomorrow)

recommendation

recommendation sequence 1

recommendation sequence 2

translator sequence

preface

chapter 1 overview

chapter 2 product planning

chapter 3 credit score

chapter 4 customer acquisition

chapter 5 direct mail customer acquisition

chapter 6 account management

chapter 1. Collection tactics

chapter 9 scenario-based consumer credit business

chapter 1 mortgage business

chapter 11 profit analysis of consumer credit products

chapter 12 management information

chapter 13 organizational structure management

chapter 14 consumer credit management during economic recession

Author introduction

Glossary

Good business foundation. In particular, the principle-based user behavior is the prerequisite for the success of this financial revolution. These user behaviors include:

There are two extreme situations in various risk responsibility allocation methods:

① Everyone is a risk manager;

② full-time risk managers will comprehensively check and coordinate the institutional risks, while others will achieve their business expansion, cost reduction or other performance targets respectively. In this way, because everyone's performance target is limited to the specific business scope, it is necessary for a special person to conduct overall supervision and coordination to ensure the smooth operation of the organization.

the above two risk management methods are feasible, but the former requires professional and rich management experience and strong risk awareness. The latter is often applied to major institutions. The advantage of using this management method is that experts in many business fields can use advanced, concise and identical management information to openly and directly resolve differences.

it should be remembered that there is no simple answer to which risk management method is appropriate. At the same time, if the organization does not have a risk expert who can distinguish the subtle differences between risk and reward for overall coordination, then no matter what management method it chooses, it will be in trouble.

The product life cycle mainly has the following three state links:

The basic business strategies of the company mainly have the following three categories:

Three can be combined with each other. There are many changes.

An excellent credit card competition questionnaire needs to collect the following information:

There are three basic pricing methods:

(1) Below market pricing method; Low prices will always be countered by peers. Before preparing to provoke a price war, it is necessary to thoroughly analyze the market situation. Is it necessary to launch a long-term tug-of-war or a short-term battle? Then carefully make countermeasures.

(2) market competitive pricing method;

(3) higher than the market pricing method. If the company's service or product really has an advantage, it can adopt a pricing method higher than the market price. For example, some card issuers charge a large annual fee and require a large transaction amount in exchange for a card that provides unique services and value-added functions (which will be described more below). There are strict restrictions on the target market of these cards.

Method for adjusting pricing:

Target customers can be divided into three categories according to customers' behavior characteristics:

(1) Borrowing customers, that is, customers who can't fully pay off the balance every month;

(2) Pay off the balance every month, and use the credit card to pay convenient users;

(3) customers who use credit cards at high and low frequencies (both types of people will appear in the above two categories).

Scoring is a method to predict the future performance of applicants (potential customers) and existing customers by analyzing their data.

Select the threshold of application scoring based on the following criteria:

(1) Maintain a given pass rate (and hope to reduce the bad debt rate);

(2) maintain the given bad debt rate/write-off rate (and hope to improve the pass rate);

(3) maintain the combination of pass rate/bad debt rate acceptable to management according to experience;

(4) increase profits.

The goal of acquiring customers is:

① customers who will take the initiative to repay without taking action;

② customers who have no intention to repay after taking any measures;

③ customers who will repay only by taking collection measures.

excessive non-performing loans;

funds matching the pricing cannot be obtained.

(1) Credit is your creed. For your own sake, neither create nor worship false gods, such as business volume and growth.

(2) You should listen to the credit discipline of credit experts.

(3) Have a deep understanding of the product, especially the profit details.

(4) Apply effective scorecards to the extreme.

(5) Don't use or abuse MIS.

(6) don't feel guilty because a product can make a profit.

(7) You can try to germinate seeds on stones, but you can only try with a few seeds.

(8) The performance of actual data must be observed and compared with the forecast.

(9) Do not covet the debtor's spouse, but you can take away other property according to law.

(1) You should set achievable goals and then achieve them slowly and surely.

without an excellent management information system, the consumer credit business is difficult to succeed.

when a company decides to rapidly expand its existing business or expand into a new, inexperienced business field with only a superficial understanding of business expectations, its planning is often poor. When financial institutions do business in unknown areas, they will face disaster if they don't follow the basic rules of business, make reasonable planning and find out the real risks of business without testing/verification process.

rapid growth hides the crisis. New accounts need time to establish balance, overdue and write off, while the new customers and current accounts receivable may cover up the true write-off rate. Portfolio can be tracked separately through the account of the same period (predetermined time period), so the management can identify the problem early when the performance of the later portfolio is far from that of the previous portfolio.

The income from the minimum monthly repayment is the interest income during this period, but the risk is to increase the probability of default.

there is no long-term solution for complex collection work that can be solved only by black boxes without collection personnel. If there is no communication skill between the collector and the customer, only investing in collection software, dialer, grading and equipment is just an armchair strategist. Excellent collection strategy is to combine excellent collection skills with advanced science and technology, so as to stand out from competitors. The next chapter of this book will specifically discuss the tactical part of collection

Write-off and Write-off:

Write-off means that the bank cancels the cardholder's qualification according to the bad record of the cardholder's use. (This money is usually paid in advance by the bank, because the bank can't recover the arrears.)

If the cardholder doesn't want to use the credit card any more, he voluntarily cancels it, which is usually called cancellation.

So, if the credit card is cancelled by the bank, is it unnecessary to pay back the outstanding debt? The answer is no. This debt still needs to be returned. Only when the debt is paid off can the bad records be automatically cleared after five years. If it has not been paid back, the bank can trace the arrears after five years. If the circumstances are particularly serious, the bank can trace it back to permanent preservation. In addition, if we refuse to pay off the arrears, it will also have a great impact on our daily life. For example, we can't handle the credit business normally, and if we are involved in litigation, we may become the executor of dishonesty and be restricted from high consumption.

Therefore, the cancellation of a credit card does not mean that you don't have to pay back the arrears, but you will face more serious punishment for breaking your trust. If a credit card is cancelled, you should actively call customer service to communicate and negotiate a repayment plan to avoid more serious consequences.

data mining is a process of screening a large amount of information with the goal of understanding the potential target market as much as possible.

big data refers to a large amount of information available at present, including internet search that helps to learn more about current or potential customers. Enterprises are trying to find out how to use this information base. For example, big data can allow customers to be subdivided to formulate products or services more accurately, or it can also be used to develop and improve the next generation of products and services. At the same time, it is necessary to solve the policy problems related to privacy, security and intellectual property rights.

Scoring uses statistical techniques to identify potential customers, whether customers are agreeable or not, or the behavior of existing customers. The degree of desirability is defined by us in advance, which can be such as rate of return, risk, response rate, willingness to renew the loan, willingness to repay in case of default, and so on. In the following examples, the scoring system can be used to predict customers with bankruptcy possibility; Accounts that do not need to take measures or must take measures in collection; Customers who can increase the quota; Customers who must reduce or cancel the quota. In short, scoring can be said to be the most useful tool in consumer loan business.

discriminant analysis:

discriminant analysis, also known as "resolution method", is a multivariate statistical analysis method to determine the type attribution of a research object according to its various eigenvalues under the condition of certain classification.

its basic principle is to establish one or more discriminant functions according to certain discriminant criteria, determine the undetermined coefficients in the discriminant functions with a large amount of data of the research object, and calculate the discriminant index. Based on this, we can determine what kind a sample belongs to.

When a new sample data is obtained, it is necessary to determine which of the known types the sample belongs to. This kind of problem belongs to discriminant analysis.

NPL ratio is a ratio, that is, the number of bad accounts divided by the total number of accounts (or the asset balance of bad accounts divided by the total balance of assets in the portfolio).