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Turn passive customer data into long-term profits with AI-driven portfolio scoring

30 May 2022

With so much available customer data, banks have the necessary business critical information to proactively serve customers and ensure they remain loyal and profitable over the lifecycle of a loan. But how can they exploit this data with faster ROI? 

Back in the days, customers signed up to a bank and became loyal customers for life. As they grew older and their circumstances changed, you could plot the services they would require and offer them in a timely fashion with a healthy profit. The banking world has changed a lot since then. Margins are tighter, competition is fierce, and loyalty is no longer assured. Ensuring your portfolio is profitable, with a healthy rate of customer retention, and in line with risk appetite, is now an exact science. One that Tietoevry has perfected with its portfolio scoring service.  

Tietoevry’s portfolio scoring service is part of the company’s AI-driven profit scoring products suite that has been developed to increase ROI for banks. Portfolio scoring is designed to predict the optimal interest rate for individuals and to prevent the risk of churn and default in order to secure the long-term winnings of an existing loan portfolio. Essentially, it’s a smart service for improving profitability of the backbook. 

“Churn is a common concern for banks today as customers often tend to switch loan providers or pay off a loan earlier than anticipated, before the loan becomes profitable” says Sofie Dufwenberg, Head of Credit Science at Tietoevry. “By utilizing anonymised customer data, our portfolio scoring service enables banks to act proactively and build stronger relations with customers. Offering customers incentives to keep the loans, such as better interest rates, is proving to be a competitive advantage for our banking clients, as they see an increase in profitable customer retention over time.” 

Portfolio scoring optimizes the interest rates, that in turn can be offered to those customers who have a significant churn risk, so banks know where to focus targeted communication. It also predicts the risk of loanees becoming debtors, i.e., the risk of individuals defaulting on loan payments. Based on this, banks can decide how well a customer fits with their risk appetite and take appropriate action. 

“Managing the default process and non-performing loans is costly and time-consuming for banks. There’s a long trail of administrative processes that must be fulfilled, and if a lender is unable or unwilling to pay their debts, a loan is often sold at a loss to a debt company or taken over by a credit institute. Either way, losses rather than profits are made. Our solution can predict who will fall into this category so banks can have a plan B to support customers before costly defaults occur.” 

When the two functions are used in combination with return of investment insights, banks are seeing significant gains.

“We’ve reached a point in the industry where we’re no longer talking about the possibilities of AI and are now talking about its capabilities to accelerate growth for our customers. Banks that have deployed our business focused credit science solutions are gaining competitive advantages, as they are able to translate their business pains and goals into black numbers on the bottom line. We offer cloud based, scalable business solutions across the entire credit value chain, from loan origination and asset financing to debt collection. Our solutions provide impressive business impact and enable incredible benefits to banks and credit institutes.” concludes Dufwenberg. 


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For more information, please contact:

Sofie Dufwenberg, Head of Credit Science - Tietoevry, Credit Solutions and services,


About Tietoevry

Tietoevry creates purposeful technology that reinvents the world for good. We are a leading technology company with a strong Nordic heritage and global capabilities. Based on our core values of openness, trust and diversity, we work with our customers to develop digital futures where businesses, societies, and humanity thrive.

Our 24,000 experts globally specialize in cloud, data, and software, serving thousands of enterprises and public-sector customers in more than 90 countries. Tietoevry’s annual turnover is approximately EUR 3 billion and the company’s shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs.

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