Case Study: a leading appliance retailer increases approvals and reduces risk with Experian machine learning modeling

Leading Appliance Retailer - Customer Case Study

Experian developed a custom machine learning acquisition model for a leading appliance retailer that was using a third-party logistic regression model. The retailer's challenge was to aggressively grow sales by increasing application approval rates while simultaneously reducing its overall credit risk.

Experian's solution utilized an extreme gradient boosting algorithm to create a highly predictive and transparent model. This machine learning model significantly outperformed the incumbent model on key metrics, increasing the KS and Gini statistics by approximately 5%. As a result, the client was able to achieve a multi-million dollar annual increase in net sales margin while decreasing credit risk.