De Novo focuses on measured outcomes, which is verified by our client retention rate––some of whom have retained us for over 20 years.
Proven results
Beyond creativity and execution is innovation. In the following case studies, we developed and applied learnings from a new customer acquisition to inventing a transformational approach to collections.
De Novo was hired for a credit card risk audit to help increase acquisitions for Scotiabank. With 26 countries in Central America, South America and the Caribbean, Scotiabank had primarily used the branch channel for new account acquisition, then expanded to non-branch channels, such as direct mail and telemarketing, for growth. Unfortunately, this led to rising fraud, delinquency and charge-offs. These non-branch channels had to be suspended until a complete review and corresponding improvements could be implemented.
Key initiatives:
- Review Scotia’s application processing across all 26 countries
- Identify areas that could be improved such as introducing consistent data entry practices, developing a joint credit policy council that includes representation from credit risk, collections and marketing, creation of a centralized credit risk analytic database and the creation of vintage reporting
- Recommend governance framework for credit policy, fraud mitigation and credit operations improvements designed to support channel expansion
Results:
- Helped Scotiabank implement the recommended solutions
- Created and recommended a centralized credit risk analytic database and corresponding vintage analysis, which yielded the greatest result
- Provided actionable intelligence so Scotiabank was able to evaluate account trends in activation, utilization, fraud, delinquency, and losses by country, by channel, by product, and by currency
- Changes were made to origination scores, line assignments and fraud criteria
- Within defined risk and growth parameters, Scotiabank returned to non-branch marketing and safe growth
AIMIA's Aeroplan VISA credit card program was about to undergo significant changes with a potential change in the issuing bank as well as a new contractual relationship with another financial institution and was in great need of experienced help from De Novo to help facilitate the transition.
Key initiatives:
- Provide the necessary expertise to assist with contract negotiations, scenario planning and portfolio conversion.
- Provide experienced resources to support AIMIA's interactions with all partners involved
- Create a profit equation for the business to use to inform the execution frameworks for the new contracts, partnerships and portfolio conveyance terms
- Enhance AIMIA's representation and interaction with the various card partners providing insight for better decisions and collaboration outcomes
Results:
- Successful Aeroplan program was supported by multiple issuing banks
- Developed detailed portfolio protection, win-back/acquisition and operational plans in support of the new relationships and agreements
- Maintained a base portfolio with one bank partner while having a more aggressive acquisition partner and engine with a second bank partner
- Mitigated any separation legal exposure
- Stabilized AIMIA's substantial reliance on card channel income
- Generated free card association investment
- Sustained the organization’s enterprise value
