Results

The credit provider was given access to DataProphet's clustering solution through an automatic real-time application programming interface (API) with powerful predictive capacities. This enabled them to identify high priority users in an online manner, updating as the users behaviours changed.

The client was also able to make well informed marketing decisions based on the insights provided by DataProphet's algorithm and went on to increase the profitability of its loan book.

DataProphet was approached by an unsecured lending company to assist them in interpretting their customer base in order for them to improve the number of loans issued while improving profit margins.

40%more profitable

This very small cluster's disbursementdisbursement rate is 58% higher than average, and with a very low default rate they were the most profitable group. The client prioritised this cluster and targeted users with similar profiles through a direct marketing campaign.

This group accounts for nearly a third of all applications. They have a very unique user profile which could be used to pre-emptively identify them. Their low disbursement rate and user characteristics suggested that while the demand for product was high, the current offering was not well suited to them, indicating anan opportunity to build a product to serve them.

1st

3rdLargest

As one of the largest clusters, accounting for 20% of total applications, and an 11% higher gross profit yield, the opportunity exists to selectively improve these customers’ experience to increase disbursement rate.

opportunities for the clientidentified three key DataProphet’s algorithm

Cluster Population

Disbursement Ratio

Cluster Analysis Highlyprofitablecluster with lowdisbursement

Largestpopulationwith very lowdisbursement

Smallreliablecluster

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