Axtria Insights

Axtria Insights


Axtria Designed Acquisition and Initial Line Assignment Strategy for a Leading US Credit Card Issuer


Client was experiencing high delinquency rates on its New to Bank Credit Card bookings. 


Axtria built a predictive model to modify the acquisition strategy and create an initial line assignment strategy.

  • Data Collection
    • Collected approved accounts data for last 24 Months
    • Collected Bureau data
    • Collected Application data
    • Created data dictionary to identify missing rates and reason for missing values
    • Outlier identification
  • Data Collection
    • Created definition of default as 6M 60 DPD rate
    • Independent variable creation: bureau score, bureau variables, application variables
    • Missing value imputation
    • Outlier treatment
    • Variable reduction using various techniques:
      − CART
      − One step logistic
      − Bivariate plots
  • Segmentation
    • Created segmentation to identify various segments of accounts
    • Identification of segments:
       − Red: Default  rate>20%
       − Amber: Default rate 10-20%
       − Green: Default rate<5%
    • Computed 12M EBIT for each segment thus created
    • Swap out sets identified with 12M EBIT as negative
    • Validation of segmentation on OOT samples
  • Line Assignment Strategy
    • Average 12 M Utilization look up tables created by credit limit
    • For each segment sensitivity of EBIT computed for various combinations of credit limit – utilization

Acquisition Strategy And Initial Line Assignment Strategy For Credit Card Issuer


  • Created as segmentation for identifying swap out sets
  • Positive EBIT impact on Swap Out
  • Created a line assignment strategy
  • New Strategy resulted in $15 Mn savings in NCL