A lender decided to launch a new fast loan product to the market and the risk set-up an infrastructure to meet the expected the target market described by the marketing team. The target market was mid income low-medium credit risk.

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. Creditinfowere requested to provide independent evidence to understand the situation.


  • Creditinfo used its BENCHAMRKING 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 Creditinfobureau 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.