Case Study: Standardized NPL Data Tape Ingestion and Analytics

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The Client

  • The client is a European private credit investor that owns and manages more than 12,000 individual performing (PL) and non-performing loans (NPL).
  • The client needed to standardize and ingest newly acquired data tapes and to be able to analyze, line-by-line the borrowers, loans and collateral.

The Challenges

  • Fragmented data sets made it difficult to run analytics and therefore challenging to devise strategies to increase collections.
  • Manual data entry was both time consuming and error prone.
  • Lack of centralized electronic dashboards to monitor loan book on an ongoing basis.

Solution Delivered

  • Cleansed, structured and segmented data to create a transparent and granular record.
  • Automated load and validation process of original and monthly data updates to customized cloud-based dashboards.
  • Application of data science and analytics to surface actionable insights real-time.

Results & Benefits

  • 120 month expected collection forecast increased by 14%, driven by the investor’s new proactive judicial strategy on non-performing second lien loans and modified payment arrangement plans offered to newly identified borrower subset.
  • Expect Lifetime Collections:

June 2019 — £56.8M

December 2019 — £64.7M