Zoot Enterprises Available to Discuss a More Effective Approach to Credit Risk Management

November 3, 2009

WHAT:  Today’s volatile market and radical consumer behavior changes have made it impossible for financial institutions (FIs) to accurately predict defaults and keep credit policy relevant. Rapidly changing conditions cause new policies to become outdated quickly (sometimes even before they can be implemented). For FIs restricting credit has become a method for mitigating risk, but it is not a sustainable practice. Banks need to keep lending.

In July of 2009, Zoot polled financial industry executives regarding their credit risk policy development processes. According to the poll, 93 percent of participants identified it takes at least nine months to develop, test and deploy a credit risk policy concept. The majority (64 percent) reported this process takes their institution more than 12 months. This lengthy cycle is ineffective in a rapidly changing economic climate.

Zoot’s Credit Risk Lab is a solution recently introduced to the market that comprehensively addresses the problem of lengthy credit risk policy development cycles. The solution provides:

• The capability to identify a new credit policy strategy in less than 48 hours.

• Significant time and cost savings for developing and evaluating quality predictive models.

• Business user control over the entire credit risk policy development process.

• The ability to experiment with unlimited variations of attribute definitions to evaluate which will be the most effective.

• A non-production environment to eliminate new risk exposure when testing.

                            
WHO:   Eric Lindeen, marketing director for Zoot, is available for media appointments.
WHEN: Nov. 3-5, 2009
BAI Retail Delivery Conference and Expo/Booth 928

About Zoot
Bozeman, Mont.-based Zoot Enterprises provides credit decisioning and loan origination solutions through a configurable, scalable and reliable platform to large and innovative U.S. financial services institutions. Visit http://www.zootweb.com/ or call 406.556.7555 for more information.

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