Credit suppliers use optimisation analytics to improve strategies

Jim Slavik, chief executive of credit and financial services at Edcon, South Africa's largest retail group, says retailers compete fiercely for customers and their loyalty. "At Edcon we use the most powerful analytics to improve the performance of our strategies and give our customers the credit they need."

Credit Act a challenge for credit grantors

Replacing guesswork with science is the key, according to Robin Findlay, director of FICO's operations in the Middle East and Africa. "Decision modeling and optimisation are replacing strategy design guesswork with science. Since the introduction of the National Credit Act, credit grantors have the challenge of increasing revenues and profitability under stricter and responsible lending guidelines."

These technologies are helping companies develop more competitive strategies in areas like cross-selling, pricing and credit line management. FICO works with PIC Solutions to advance South African lenders' customer management. "Decision optimisation is an advanced approach to credit strategy design that is new to the African market. Early adopters are gaining a competitive advantage from using this approach, and is clearly the way forward," says Simon Trupp, director at PIC Solutions.