TeamBank AG

Responsibilities

• Supporting efforts to acquire new customers
• Identifying and evaluating risk among new customers
• Managing collection programs

Customer

Thanks to easyCredit, TeamBank AG is the installment-loan specialist in the cooperative financial alliance. Thanks to continuous process and product innovation, the company based in Nuremberg, Germany, has been achieving double-digit growth both in its new-customer business and in earnings, gaining a reputation as the market leader in growth at the same time. More than 900 cooperative banks have already decided to issue the easyCredit, the first and most well-known »brand product« in the sector.
With the help of scoring processes, arvato infoscore, a subsidiary of arvato services, selects addresses with high loan potential. Through the addition of further information, the use of advertising materials is optimized in terms of response. To facilitate risk forecasting of the incoming loan inquiries, arvato infoscore developed a special scorecard for the »easyCredit« product. These cards are supplemented by the use of external data (credit-history information from arvato infoscore as well as credit agencies) to forecast default probability. In the area of receivables management, arvato infoscore also used to assume responsibility for collection. Later, TeamBank decided to handle receivables by itself.

The installment loan easyCredit is the trendsetter in this market. It was introduced as a brand in 2000. In 2003, it became the first finance product in the world to receive a TÜV certificate. Loans are issued by the partner banks in the cooperative alliance, on the Internet and in easyCredit shops. The highly responsible loan business conducted by TeamBank AG begins immediately with the selection of future customers. Two important factors used in target-group selection in direct marketing are loan potential and a forecast about the likelihood of a loan being issued. As part of a conscientious approach to lending, questions about a person’s ability to meet credit obligations or repayment probability are addressed as well. arvato infoscore provides TeamBank AG only with those addresses that meet the bank’s pre-determined criteria. In addition to information about consumer behavior, credit-history data flow into the selection process as well. This approach ensures that the customers who receive loan offers – and who accept them – will be able to pay back the money under the bank’s terms. The borrower can use a variety of attractive insurance models to cover virtually any event that could prevent repayment. If a customer expresses interest in an easyCredit, his or her information is subjected to a scoring process that examines creditworthiness. All information that the customer provides on the application is reviewed, and external credit agencies are consulted, creating a comprehensive financial picture.

Within seconds, the customer receives an individual loan and insurance offer based on this review. In the development work done on the loan-decision system, the experience of arvato infoscore was linked with that of TeamBank AG, producing a loan-decision tool for use in both risk and earnings forecasting. If a customer is unable to keep up with the payments, TeamBank AG uses the scoring process to manage collection activities. All information obtained about the customer is used to create an acceptable solution for both sides. arvato infoscore supports TeamBank AG in all questions centering on value-oriented customer management.

Central activities

• Developing a scoring process
• Selecting and providing addresses from arvato infoscore’s databases of households
• Optimizing advertising material
• Preparing risk forecasts
• Providing credit-history information