Case Study: MLX Consulting achieves data-driven risk control and sustainable portfolio growth with MeridianLink

MLX Consulting - Customer Case Study

MLX Consulting engaged MeridianLink to investigate why a midsize financial institution’s push to expand indirect vehicle lending—driven by looser underwriting, higher funding in lower credit tiers and lower interest rates—produced rapid portfolio growth but also unexpectedly large losses. The institution had increased funded volume (more than a 250% rise in dollar funding over six months) yet saw charge-off rates climb (vintage charge-offs rose from ~2.9% to ~4.3%, a ~46% increase), and MLX Consulting needed analytics-driven insight and solutions from MeridianLink’s analytics and consulting services.

The MeridianLink MLX Consulting team performed a deep-dive analysis that identified Payment-to-Income (PTI), Debt-to-Income (DTI), underwriting behavior and a shift in risk mix as the primary drivers of higher losses, and built an origination custom scorecard as a predictive remedy. Applying the scorecard to the 2015 originations projected a 24‑month charge-off rate of 0.87% versus the actual 4.3%, demonstrating MeridianLink’s ability to enable controlled growth through predictive analytics, custom scoring and risk‑based pricing.

MLX Consulting