AXIS Bank - kentrix

Early Warning System For Credit Card/Loan Default Payment Behaviour

Identifying risk clusters of specific customer lifestyle– income segments likely to default in credit repayment

Axis Bank faced challenges in underwriting credit cards and loans due to a lack of credit scores for many applicants, particularly in personal loans.

KENTRIX provided a solution by profiling customers into lifestyle affinity segments, integrating income and product purchase behavior.

The bank also analyzed the history of non-paying customers to identify default patterns. By integrating KENTRIX data into their risk models, Axis Bank identified high-risk consumer segments and significantly reduced default rates.

This data-driven approach helped Axis Bank make more informed lending decisions and mitigate risks effectively, showcasing the impact of KENTRIX in enhancing creditworthiness assessment.

The KENTRIX Solution

KENTRIX profiled Axis Bank customers into consumer lifestyle affinity segments integrating income and product purchase affinities. Further, the history of loan/credit card non-repaying/default customers was profiled to identify a “default consumer profile” as a template for the bank.

Based on the customer profiling delivered, the bank identified that their risks for defaulting in repayment lie 4 to 5 times higher in specific consumer lifestyle segments with the integrated income, age, and family status profiles.

Axis Bank integrated the KENTRIX data on customer income and lifestyle affinity segmentation into their Risk Models, which helped the Bank significantly bring down its default rate.