Lewis Group Limited · JSE:LEW
Lewis — Investor Presentation (September 2007)
12 slides from Lewis's investor presentation, September 2007
Slide 1: Credit Risk Management
Credit Risk Management Presented to: Analysts, Investors & Fund Managers September 2007 1
Slide 2: Index
Index Differentiation between New & Repeat Customers Principals of Credit Scoring New Customer Processing Existing Account Management Discussion 2
Slide 3: Differentiation between New & Repeat Customers
Differentiation between New & Repeat Customers New Customers Repeat Customers Application Processing Monthly Account System Management System Application Risk Behavioural Risk Scorecards Scorecards 75% Strength from 75% Strength from Bureau Data Internal Data 3
Slide 4: Principals of Credit Scoring
Principals of Credit Scoring TIME 4
Slide 5: Principals of Credit Scoring
Principals of Credit Scoring Use past information to predict future behaviour Results in a Risk Score which equates to a probability of a customer becoming delinquent 5
Slide 6: Principals of Credit Scoring
Principals of Credit Scoring Continuous enhancements take into account shifts in population (changes in emerging market) Allows for new information to be considered (NLR, banks, telco’s, etc) 6
Slide 7: Principals of Credit Scoring
Principals of Credit Scoring More immediate changes in economic conditions are managed by the scorecard A negative shift in the population will result in more people scoring lower The calculated probability of the score remains the same Reflected in changes in the Accept Rate The amount of risk take
Slide 8: New Customer Application Processing
New Customer Application Processing 8
Slide 9: New Customer Application Processing
New Customer Application Processing Credit Bureau Score (CPA & NLR) Application Lewis Stores Expense Branch Assessment Final Decision Affordability & Assessment Credit Policy Apply Policy Calculate Rules Credit Limit 9
Slide 10: Repeat Customer Account Management
Repeat Customer Account Management 10
Slide 11: Repeat Customer Account Management
Repeat Customer Account Management Credit Bureau Score (CPA & NLR) Customer Lewis Stores Expense Branch Assessment OTB & Affordability Statement Assessment Codes Determine Calculate Statement & Credit Limit & Promotional OTB Offers 11
Slide 12: Discussion
Discussion 12