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Profile

Innovative Analytics utilizes credit data and analytics to help financial institutions better understand and evaluate their loan portfolio, both in the aggregate and at an individual loan level.

We evaluate your portfolio in relation to your lending policy and identify opportunities to manage your risk, maximize your profits and make more informed credit decisions.

  • Minimize Risk Exposure and Efficiently Assign Resources:
    • Determine which customers are at the highest risk of delinquency
    • Identify candidates for credit limit reduction or account closure
    • Effectively target collections activities
    • Determine the proper level of funding for debt reserves
  • Maintain and Grow Your Current Portfolio:
    • Identify candidates for increased credit limits
    • Reactivate previously delinquent accounts
    • Effectively target cross-sell promotions and affinity programs
 
 
 
 
 
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"Excellence is not an accomplishment. It is a spirit, a never-ending process."--- Lawrence M. Miller

INDIVIDUALIZED
CARE

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Layne R. McDaniel

CPA, CGMA, President and CEO

Layne is co-founder and President of Innovative Analytics and also serves as President of Noesis Data and the Credit Bureau of Baton Rouge Foundation. He is a certified public accountant and chartered global management accountant and has worked in both the public and private sector. Previously, Layne served as President of Credit Bureau of Baton Rouge, Inc. and Credit Administration Manager for Bank One, Louisiana. Prior to that, Layne served as Audit Manager for the Financial Services Group of Ernst & Young in their Houston Office.

As one of the founding members of Innovative Analytics, Layne has played a key role in the development and enhancement of the data analytics used by Innovative Analytics.

Layne is a member of the American Institute of Certified Public Accountants, the Louisiana Society of Certified Public Accountants, and Consumer Data Industry Association.  Layne also serves on the Board of Directors of the PolitiCraft, Manship Theatre, Big Buddy Program, and Louisiana Dream Teachers’.  He is a member of the Baton Rouge Area Chamber, Rotary Club of Baton Rouge, Baton Rouge Area Foundation and various other civic and charitable organizations.

Layne received his Bachelor of Science Degree in Accounting from Louisiana State University in Baton Rouge, Louisiana.

layne@ianalytics.com
(225) 490-0946

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Belinda Morales

Vice President

Belinda is co-founder and Vice President of Innovative Analytics and Noesis Data. She has over 20 years of experience in the financial services industry, specializing in credit reporting and data analysis. Prior to her current position with Innovative Analytics and Noesis Data, Belinda worked for the Credit Bureau of Baton Rouge.  Prior to that, she worked for Hibernia National Bank (acquired by Capital One) and First National Bank of Covington where her responsibilities included financial accounting and indirect lending.

Belinda is responsible for developing and implementing customized business strategies that help our clients increase revenue, minimize losses, and expand market reach. She serves clients in a variety of industries including financial services, manufacturing, telecommunications, automotive, healthcare, retail and insurance.

Belinda is FCRA certified and a member of the Consumer Data Industry Association, Baton Rouge Area Chamber, Louisiana Bankers’ Association, Louisiana Credit Union League, Louisiana Finance Association and the Louisiana Automobile Dealers Association. She has presented at numerous conferences on credit reporting, credit scoring, customer acquisition and retention, portfolio and risk management, fraud detection and prevention, debt recovery and compliance.

Belinda received her Bachelor of Science Degree in Finance from Louisiana Tech University in Ruston, Louisiana.

belinda@ianalytics.com
(225) 490-0942

 

Victoria H. Richard

Partner

Victoria is co-founder and Regional Market Manager for Innovative Analytics and Noesis Data. She has more than 25 years of experience in the credit reporting and data consulting industry. Victoria began her career in 1987 with Chilton Credit Reporting Services, and subsequently worked for TRW Information Services and the Credit Bureau of Baton Rouge. She serves clients in a variety of industries including banks, credit unions, finance companies, indirect lenders, mortgage lenders and more.

Victoria is FCRA certified and has taught and presented to numerous classes on credit reporting, credit scoring, customer acquisition and retention, portfolio and risk management, fraud detection and prevention, debt recovery and compliance.

Victoria is a member of the Lafayette Chamber of Commerce, Consumer Data Industry Association, Louisiana Bankers Association, Louisiana Automobile Dealers Association, Louisiana Credit Union League and Louisiana Finance Association. She is past president of the Acadiana Credit Executives and has served as Treasurer, Vice President and member of their Board of Directors.  She is also a pass member of the Credit Professionals of Lake Charles and Southwest Chamber of Commerce.

Victoria attended University of Louisiana Lafayette in Lafayette, Lousiana.

victoria@ianalytics.com
(225) 490-0943

 

Our
Services

  • Risk Management
    • As the lending landscape shifts due to economic uncertainty and increased regulations, the overall quality of your consumer loan portfolio can change quickly. The ability to actively identify and manage current risk and anticipate future risk is an essential part of any effective credit risk management strategy.Increasing emphasis on risk management over the past several years has caused many lenders to look more closely at risk within the non-commercial segments of their loan portfolios. Detailed portfolio analysis supported by data visualization can significantly increase the speed with which data can be interpreted and acted upon. An effective credit risk management program can identify your customers’ developing credit problems long before they affect your profit margin.
 
 
 
 
  • Current Expected Credit Losses
    • CECL is the acronym for the Current Expected Credit Loss Model. In essence, it requires financial institutions to record estimated life time credit losses for debt instruments, leases, and loan commitments. The big change here is that the probability threshold used to determine the allowance for loan and lease losses is removed and FASB expects losses to be recorded on day one.
    • A major advantage to the use of this technique is that it relies on the use of the same credit indicators financial institutions now use to underwrite loans and manage their loan portfolios, including FICO, loan term, and loan-to-value percentage.
    •  Under the new Current Expected Credit Loss (CECL) model, financial institutions will be required to use historical information, current conditions and reasonable forecasts to estimate the expected loss over the life of the loan. The transition to the CECL model will bring with it significantly greater data requirements and demand a more complex methodology to accurately account for expected losses under the new parameters.
 
 
 
 
 
 
 

Current Expected Credit Losses

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  • Wallet Share
    • Financial institutions collect substantial information on their interactions with their customers.  However, information about their customers’ transactions with other financial institutions is often sparse or nonexistent.  As a result, most financial institutions manage their customer relationships based solely on internal information.  Unfortunately, studies have shown that the volume of customers’ transactions within a financial institution has little correlation to their overall volume of transactions.  Additionally, a small percentage of customers account for a large percentage of external transactions.
    • This would suggest that there is a considerable potential to increase transactions with existing customers if they can be properly identified and incentivized to switch. Thus, a more external view in relationship management, with insights into their customers’ relationships with competing financial institutions, including the size of each customers’ wallet and the financial institution’s share of it.

 
 
 
 
 

Wallet Share Analysis

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  • Account Life Cycle Management
    • Determine score tiers for new accounts
    • Set credit limits and identify low risk areas of portfolio
    • Close/Freeze accounts
    • Raise and lower credit limits
    • Make over limit authorizations and reissue decisions
    • Identify and track high-risk accounts
  • Dual Score Strategy Development
    • Incorporating a second score into a lending strategy allows management to more effectively segment applicants and more accurately assess risk. More advanced segmentation allows for maximizing portfolio potential.
    • Bankruptcy scores provide added value when used with a risk score. A matrix approach is used to evaluate both scores to determine effective cutoff strategies.   Evaluating applicants with both a risk score and a bankruptcy score can identify more potentially profitable applicants and more high- risk accounts.

Credit Score Distribution

800-850Balance: $299,64011.04%
780-799Balance: $370,00113.63%
760-779Balance: $377,18313.90%
740-759Balance: $360,04413.26%
720-739Balance: $357,44513.17%
700-719Balance: $201,2667.41%
680-699Balance: $150,3145.54%
660-679Balance: $113,6124.19%
640-659Balance: $108,2973.99%
620-639Balance: $63,9162.35%
600-619Balance: $65,3462.41%
580-599Balance: $62,8352.31%
560-579Balance: $48,7031.79%
540-559Balance: $31,0021.14%
520-539Balance: $31,7361.17%
500-519Balance: $19,6140.72%
300-499Balance: $49,9381.84%
No ScoreBalance: $3,4260.13%
  • Credit Score Migration
    • Maximize your relationships with existing customers as their credit behavior changes over time. Identify opportunities to mitigate risk by re-evaluating open credit lines and exposing opportunities to offer new loan products to borrowers with improving credit scores.
    • An effective credit score migration model, with detailed analysis, will highlight potential problem borrowers long before most other reporting methods. Studies have shown that a deterioration in credit score of two or more risk ratings is one of the best predictors of future charge-offs.  Credit score migration models allow you to more effectively set collection strategies, reduce or curtail credit limits, re-price lines of credit, and identify cross-sell opportunities.
 
 
 
 

Credit Score Migration

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  • Risk Based Pricing Strategy Assessment
    • Risk-based pricing is often recommended as a better way to set prices on consumer credit products. It seeks to aligns loan pricing with the expected loan risk.  The measured difference in risk between each customer, or group of customers, is used to assign differentiated prices.  The logic is that operationally every customer costs the same to service, it is only the cost of risk that fluctuates – or at least, it is the cost of risk that fluctuates the most. Pricing strategies can be measured and adjusted as the portfolio mix changes.
    • An effective risk based pricing strategy starts with a system to properly rank order risk.  In theory, risk-based pricing will help align price and costs by increasing the pricing for higher-risk/higher-cost customers and decreasing the price for the lower-cost and better-risk customers.  Accurate assessment of the true responding populations (impacted by both internal and external marketplace factors) is essential to successfully implementing any pricing strategy.

 
 
 
 
 
 

Average Interest Rate by Credit Score

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Online
Demonstration

 

ONLINE DEMOS COMING SOON

 

 

CONTACT US

# info@ianalytics.com
# (225) 490-0940

In the
News

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FASB Issues New Guidance on Accounting for Credit Losses

Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses

Norwalk, CT (June 16, 2016) – The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions...

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Norwalk, CT (June 16, 2016) – The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations.

“The new standard addresses concerns from a wide range of our stakeholders—including financial statement preparers and users—that the existing incurred loss approach provides insufficient information about an organization’s expected credit losses,” stated FASB Chair Russell G. Golden.

“The new guidance aligns the accounting with the economics of lending by requiring banks and other lending institutions to immediately record the full amount of credit losses that are expected in their loan portfolios, providing investors with better information about those losses on a more timely basis,” Mr. Golden added.

The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates.

Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances.

The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements.

Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration.

The FASB first embarked on a project to improve the financial reporting of credit losses on financial instruments in 2008. Since that time, the FASB has issued three documents for public comment that generated 3,360 comment letters.

Throughout the project, the FASB conducted extensive outreach with diverse groups of stakeholders. That outreach included meetings with over 200 users of financial statements; over 85 meetings and workshops with preparers; over 10 roundtables with more than 100 representatives including users, preparers, regulators, and auditors; and 25 fieldwork meetings with preparers from industries including banking institutions of various sizes, nonfinancial organizations, and insurance companies.

The ASU on credit losses will take effect for U.S. Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For public companies that are not SEC filers, the ASU on credit losses will take effect for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other organizations, the ASU on credit losses will take effect for fiscal years beginning after December 15, 2020, and for interim periods within fiscal years beginning after December 15, 2021.

Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.

Further information about the ASU—including a FASB in Focus  overview, a FASB: Understanding Costs and Benefits document, and a video entitled Why a New Credit Losses Standard? —is available at www.fasb.org. A CPE webcast will be held in the coming weeks; registration will be announced on the FASB website.

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FICO Survey: One in Three US Millennials Have Closed All Bank Accounts After a Fraud Incident

22 percent of US consumers will close an account after a fraud incident, while 29 percent of Millennials will close all accounts with that bank

SAN JOSE, Calif. (June 1, 2016) — FICO’s latest research on consumer banking trends has revealed that 22 percent of US consumers will close an account after a fraud incident, while 29 percent of Millennials will close all accounts with that bank.  The survey...

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SAN JOSE, Calif. (June 1, 2016) — FICO’s latest research on consumer banking trends has revealed that 22 percent of US consumers will close an account after a fraud incident, while 29 percent of Millennials will close all accounts with that bank.  The survey shows how quickly attitudes are shifting when it comes to customers and their expectations of how fraud should be handled by banks.

HIGHLIGHTS:

  • 22 percent of US consumers will close an account after a fraud incident, while 29 percent of Millennials will close all accounts with that bank, according to a new FICO survey
  • 14 percent of US consumers say they have written a negative social media post about a fraud incident. This is a 100 percent increase on the number who would do so a year ago.
  • 25 percent of Millennials will write a negative post on social media about a fraud incident.
  • 41 percent of Millennials recommended their bank to friends, family, and colleagues after a positively handled fraud incident, compared with 25 percent of 35-49 year olds.
  • 40 percent of banking customers say their bank does not protect them from identity theft at all times.

TJ Horan, Vice President of Product Management at FICO, said, “Consumers will reward banks that save them the hassle or at a minimum reduce the pain of fraud. The way a fraud incident is handled can make or break a customer’s relationship with the bank, as well as influence its reputation among the customer’s peers.”

This is especially true among the 25-34 year old age bracket. The survey revealed that 25 percent feel strongly enough to make a negative comment on social media if a fraud incident is not handled well. A further 21 percent will actively discourage a friend, family member or colleague from using the bank after a fraud incident.

However, the opposite is also true: Among Millennial customers who say they experienced fraud in the past year, 41 percent recommended the bank to friends, family, and colleagues after a positive fraud management experience while 34 percent went on to add new accounts with the same bank.

“This demonstrates that, contrary to popular perceptions, Millennials exhibit brand loyalty when presented with a favorable experience,” said Horan. “Increasingly, peer reviews are more influential than any advertising or marketing program, especially with Millennials who now represent 80 million US customers, and represent US$200 billion in annual buying power. This is why the most successful banks have recognized fraud is more than a cost-containment problem, and are investing in state-of-the-art fraud management platforms that give the customer a greater sense of ownership and control.”

The visibility of fraud, data breaches and other financial crimes in the news in the last 18 months has primed the issue with consumers.

“Consumers are looking for greater protection from fraud and sophisticated identity theft. The identities of an estimated nine million Americans are stolen each year. Combined with the sharp increase in ATM compromises we reported last month, it’s clear that fraud prevention and communication are more vital than ever,” said Horan.

Banks are ramping up fraud prevention efforts that empower customers. They are launching education campaigns, consumer-driven card protection services, identity theft units and tailored customer communications. Despite this, the FICO survey showed that 40 percent of banking customers in the US don’t believe their bank can provide protection from identity theft to them at all times.

“There is a strong desire from consumers to participate in fighting fraud through methods such as better alerts and communication with their banks,” Horan concluded. “By closing this loop with their bank, consumers can help to protect themselves.”

FICO conducted the online survey of approximately 1,000 US consumers over the age of 17 in October and November 2015. Data was weighted by age and region to reflect U.S. Census data.

 

 

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Equifax, Experian and TransUnion Launch National Consumer Assistance Plan to Enhance Credit Report Accuracy, Consumer Experience

Equifax, Experian and Transunion Today Announced a National Consumer Assistance Plan that will enhance their ability to collect complete and accurate consumer information and will provide consumers more transparency and a better experience interacting with credit bureaus about their credit reports.

Equifax, Experian and TransUnion today announced a National Consumer Assistance Plan that will enhance their ability to collect complete and accurate consumer information and will provide consumers more transparency and a better experience interacting with credit bureaus about their credit reports. The...

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Equifax, Experian and TransUnion today announced a National Consumer Assistance Plan that will enhance their ability to collect complete and accurate consumer information and will provide consumers more transparency and a better experience interacting with credit bureaus about their credit reports. The plan was announced after cooperative discussions and an agreement with New York Attorney General Eric Schneiderman.

“The National Consumer Assistance Plan we are announcing today will enhance our ability to offer accurate reports and make the process of dealing with credit information easier and more transparent for consumers,” said Stuart Pratt, President and CEO of the Consumer Data Industry Association, the trade association representing the consumer data industry, including the three national credit reporting agencies. “While we are pleased that the most recent comprehensive study by the Federal Trade Commission showed that credit reports are materially accurate 98% of the time, we are always looking for ways to improve our procedures, and this consumer assistance plan will allow us to do that. While all three nationwide credit bureaus have been and continue to operate in compliance with the applicable federal and state laws, we have never hesitated to go beyond the letter of the law to voluntarily improve the existing credit reporting environment.”

During discussions over recent months, the New York Attorney General and other state attorney generals allowed the credit reporting agencies to collaborate in an unprecedented manner to share industry best practices and develop a plan that will offer consistent and meaningful benefits to consumers.

The National Consumer Assistance Plan focuses on enhancements in two primary areas: consumer interaction with national credit reporting agencies and data accuracy and quality.

National Consumer Assistance Plan Highlights

  •  Consumer experience:
    • Consumers visiting www.annualcreditreport.com, the website that allows consumers to obtain a free credit report once a year will see expanded educational material.
    • Consumers who obtain their free annual credit report and dispute information resulting in modification of the disputed item will be able to obtain another free annual report without waiting a year.
    • Consumers who dispute items on their credit reports will receive additional information from the credit bureaus along with the results of their dispute, including a description of what they can do if they are not satisfied with the outcome of their dispute.
    • The CRAs are focusing on an enhanced dispute resolution process for consumers that are proven victims of identity theft and fraud, as well as those involved in mixed file situations.
  • Data accuracy and quality:
    • Medical debts won’t be reported until after a 180-day “waiting period” to allow insurance payments to be applied. The CRAs will also remove from credit reports previously reported medical collections that have been or are being paid by insurance.
    • Consistent standards will be reinforced by the credit bureaus to entities that submit data for inclusion in a credit report (data furnishers).
    • Data furnishers will be prohibited from reporting authorized users without a date of birth and the CRAs will reject data that does not comply with this requirement.
    • The CRAs will eliminate the reporting of debts that did not arise from a contract or agreement by the consumer to pay, such as tickets or fines.
    • A multi-company working group will be formed to regularly review and help ensure consistency and uniformity in the data submitted by data furnishers for inclusion in a consumer’s credit report.

“The current work done by the nationwide credit reporting agencies creates a market that is fair and focused on the needs of more than 200 million credit-active consumers in the United States,” Pratt said. “The National Consumer Assistance Plan will make their credit reporting experience simpler and more transparent.”

The National Consumer Assistance Plan will build on other steps the credit bureaus have made in recent years to improve consumers’ ability to resolve issues related to credit reports. In 2013, the companies launched a process under which consumers can upload documents digitally to dispute how their lenders have reported their accounts to the credit bureaus.

Implementation of the consumer assistance plan will begin over the next few months.  In addition to the announcement today, dialogue continues with additional attorneys general, and further announcements could be made in coming months.

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