Top 5 reasons to squeeze a(nother) portfolio review into 2023.

Looking for ways to add value to your business before closing this year’s books? An Equifax Portfolio Review is the perfect way to maximize any remaining funds in your 2023 budget.

What is a portfolio review?

A portfolio review proactively screens the accounts in your portfolio against criteria that you select. This powerful tool can quickly provide deeper customer behavior insights, support informed decisioning, and keep your portfolio profitability in focus.

Leverage data from a portfolio review to understand what your customers are experiencing in their lives and finances and offer them the right products at the right time.

Top 5 reasons to run a portfolio review before year end

1. Monitor the overall creditworthiness of your portfolio.
Many financial institutions are required to monitor their portfolios regularly, so performing a portfolio review allows you to check this box for auditors.

2. Identify risk in customers’ credit behaviors.
Wouldn’t you like to know, for instance, which customers have $100,000 or more in credit card debt? Or who’s behind on their obligations with other financial institutions? A portfolio review can help you answer these questions and more.

3. Determine which customers need credit line increases or decreases.
Find out which customer profiles indicate worthiness for a credit line increase. For riskier customers (e.g., someone with a credit score of 480 and eight bankcards open with an aggregate balance of $96,000), you might consider decreasing or suspending their credit lines.

Note: Portfolio review projects can be used for adverse action.

4. Assist in CECL calculations.
Overall, credit score migration and current delinquencies are factors used in CECL calculations. Items like aggregate student loan balances from deferment increase customer debt loads and might warrant adding “outside factors” to your CECL calculations.

5. Uncover missed opportunities.
Do a large percentage of your customers have unsecured personal loans—at your institution or not? Consider offering UPLs or sending out a live check campaign before the year’s end.

There’s still growth to be realized between now and December 31, and an Equifax Portfolio Review can help you get there.