Profitable risk management
Integrated strategies for customer optimization
arvato's combination of risk data and innovative sector-specific solutions for preventing fraud enable organizations to attain profitable customer relationships. When managing new customers, it is important to identify the opportunities and risks of each customer relationship. High-risk customers should not be developed at all or only with adequate discretion. Promising customers should be developed on long-term consideration for the company by up-selling and cross-selling. Failing customer relations – due to inactivity or irregular payment – should be managed to secure liquidity.
A proactive approach to credit and collections challenges
Without the ability to effectively target at-risk customers with the right strategy, bad debt has been shown to rise considerably. We use a proactive approach to credit and collections challenges, using advanced real-time trending analytics to recognise customer, industry and country-specific trends and mitigate risk.
Through our partners, we provide up-front credit control through both online and offline credit/risk assessments and analysis, as well as offline credit history and reference checks. We deliver periodic credit and risk reviews to minimise bad debt exposure.
Post credit check, Arvato’s risk management technology identifies relevant payment methods for each individual customer, increasing conversion through a personal approach.
Reduction of complexity
arvato’s comprehensive risk management solutions cover all aspects of risk managements and analytics, allowing our clients to focus on their core business.
Sophisticated tracking technologies for the detection of fraud patterns
PC, tablet, smartphone or game console: each of these devices leaves a unique and identifiable trace. Arvato’s sophisticated tracking technology identifies particular internet access devices on the basis of this in real-time, protecting your business from fraudulent users.
Increase your delivery rates
Do you need to know if your customer is actually based at the specified address? Achieve the greatest possible security and save costs using optimal address management. Increase your delivery rates and avoid payment defaults by checking your customers' and business partners' addresses to ensure that they can receive deliveries.
Credit rating checks
Minimize risk and increase earnings
Credit rating checks limit the risk involved in doing business at all stages of the customer life cycle. They are an important factor in increasing earnings, reducing bad debts and lowering reminder costs.
For customers without negative payment experiences, the Informa-Consumer-Score forecasts the probability of a customer not paying due invoices or other credit risks. Thus you can easily identify a customer without negative payment history, but nevertheless risk can control your decision during acquisition and customer management.
Using the Boni-Score, you can calculate the future probability of a default in payment by consumers categorized as critical as early as during the ordering or application process. Therefore, their score helps you to decide whether to execute orders for goods or services placed by individuals with verified bad payment practices. You can actively manage your current collection processes by using the collection scoring in order to predict the probability and amount of successful collections.
Return-debit prevention pool
Return-debit Prevention Pool (RPP)
SEPA direct debiting is the payment method par excellence across all industries. What all industries have in common is that they face the risk of returned SEPA direct debits (chargeback) if accounts are uncovered. There are further risks which, however, can vary according to the industry.
The telecommunications pool is a poil of closed data that is exclusively designed for telecommunications companies. Concurrently, the principle of reciprocity applies: the participating company can only receive information from the pool when it provides its own data to the pool.
Risk and yield scoring
Be one step ahead right from the beginning, retain your customers and keep them on track
You set the course for a profitable portfolio at the beginning of the customer relationship: an optimum decision requires a reliable prediction of the expected customer behaviour (e.g. payment of the purchase or repayment of a loan) when receiving the application. Potentially profitable customers should be acquired while customers with a high risk should be avoided from the very beginning.
Early fraud prevention and avoidance
Recognise irregular payment behaviour
The usual risk management instruments are ineffective as they evaluate risks only for existing consumers. As the names and addresses of the fraudulent accounts are unknown the risk can only be identified subsequently when the goods are delivered but not paid. We offer you the most innnovative tools in order to avoid fraudulent orders.
Risk solution services
Maximise your earnings while minimising risks
Arvato Financial Solutions offers risk solution services all over Europe, promising extensive protection and risk management that maximizes earnings that is individually adjusted to your requirements and easy to implement.
Our unique and personal approach to risk management entails your own personal Risk Manager taking over the continuous analysis of your risk management and support you in all matters concerning risk management.
- Risk and fraud prevention
Automated and rule-based risk and fraud prevention for protection against losses on bad debts ensures the success of your company.
- Active management of payment options
Improve customer satisfaction by giving your customer the choice to choose between all payment options available depending on the individual risk profile.
- Dynamic limit management
Assess the risk and potential of your customers by developing and managing a dynamic limit through the use of external credit scores and available payment information.
Real time reporting on all relevant KPIs gives you transparency throughout your risk management process, anytime and anywhere.
- Configuration instead oft programming
The modular structure of risk solution services gives you maximum flexibility: fast and uncomplicated adjustment of your risk management to changes in framework conditions.
Identify fraudulent devices and fraud quickly and efficiently
The internet is a good place for business. For traders, however, it is also an unsafe and anonymous place. This concerns mainly online shops as well as providers in the telecommunication or online gaming sector. They face high losses due to fraudulent activities. For example: Fraudsters place several orders in an online shop within a short time period using different user names.The deliveries are sent to different but existent addresses. Or a user creates several accounts with incorrect identity in order to illegally make multiple use of special offers.
digital account check
Simple loan application - maximum security
The German finance sector receives almost 25 million loan applications per year. However, in spite of a variety of optimisations in recent years, there has still been no fully automated process for processing these applications – until now.
Sustainable consulting services for your success
Our portfolio of consulting services includes process audits, project management, analytical methods, integration services, mathematic-statistical prediction models, benchmarking as well as the further comprehensive and strategic development of your risk management processes. Take advantage of our industry know-how to reach your goals.