Aug 2021 | PowerCurve Users Club | Credit Risk, Simrisk
By Posted by SimRisk

Eight experienced groups from across EMEA tested their credit risk strategies in Experian’s international competition

The SimRisk international credit competition pits eight of the strongest credit risk teams from financial institutions across EMEA against each other.

Each team has shown its class in previous editions of SimRisk, the international credit risk competition run by Experian. But only two could make the final.

The mission for all teams was to maximize the revenue of existing credit card portfolios.

They were provided with in-depth descriptions of the portfolio, a powerful simulation tool and multiple variables to use.

All teams developed a very clear strategy implementing their own particular approach from the first round.

Teams SISU, VTB and Super-Combo decided to increase limits to improve spending and balances, while BAWAG Risk, Mega Mind, UCFin and MPS Algorithm chose to adjust their collections strategies.

Team vA-bank used the first round to set up trials on all areas of their portfolio.

After each round, all teams had the opportunity to review results and change strategies, when they were presented with a report on how their portfolios had evolved over six months.

In the final rounds, they all found their way by using Assisted Design, developing an effective approach based on the card style (classic, gold and platinum), using extensive segmentation and controlling spend of accounts in arrears.

As in real life, there is no “magic wand” and the finer details of each team’s strategy cannot be revealed until the game is over.

For now, all we can say with confidence is that all teams would surely have been able to control bad debt and smash their revenue target if the game was played over a more extended period.

However, only the two teams with the highest portfolio revenues after four rounds advance to the final.

The finalists

Sber’s Team Super-Combo and Alfa Bank’s Team vA-Bank will meet in the final.

They will play two rounds of 45 minutes in September, one running time forward three months and the next forward by nine months.

Who will have learned most from the semi-final to emerge as SimRisk winner?