Abstract
The present disclosure relates to a method and system for asset quality management by a financial entity. The system includes a pre-delinquency module and a sloppy payer detection module for efficient management of assets. The pre-delinquency module detects a number of 0 DPD accounts at a point of observation that may roll forward to 30+ DPD accounts in performance window using a validated ML model. The sloppy payer detection module detects a number of 1-29 DPD accounts at the point of observation that may be cured to 0 DPD accounts in performance window. Further, the pre-delinquency module evaluates an “At risk” bad rate while the sloppy payer detection module evaluates a delinquency rate that is further used to prioritize early collection process for the most risky accounts accordingly.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
OON, PIK KOON; LIU, SIQING; and PETROVA, PLAMENA, "Asset Quality Management", Technical Disclosure Commons, (April 19, 2023)
https://www.tdcommons.org/dpubs_series/5803