Loss Forecasting Assessment for Auto Lender
Background: An auto finance company engaged AQN to quickly assess the quality of their current Loss Forecasting methodology and recommend both immediately actionable improvements and long-term changes
Outcome: AQN delivered immediate tactical improvements that reduced variance by 40%+ in a span of 3 weeks, meeting the tight deadline for incorporation into the 2020 budget
AQN’s Approach:
Investigated the client’s current loss methodology and its evolution over time
Recommended and accelerated execution on key tactical changes in time for the 2020 budget
Increased meaningful segmentation
Refined curve building techniques
Seasonality Factor adjustments
Provided strategic recommendations for the appropriate long-term state of loss forecasting based on AQN’s deep industry experience
Key Results:
