Case Study: Leading Telecom Operator achieves 50% reduction in bad debts with Quantzig's Credit Risk Modeling

50% Reduction in Bad Debts Achieved by a Telecom Operator by Using Credit Risk Modeling

Quantzig worked with a leading telecom operator that needed a more robust way to classify customers by payment behavior. The customer wanted to distinguish good accounts from high-risk accounts in order to better manage credit risk, reduce bad debts, and improve the effectiveness of collection efforts.

Quantzig implemented a credit risk modelling solution using regression analysis, cross-tab analysis, early warning signals tracking, and a risk scorecard for customer accounts. The model helped the telecom operator use risk-based credit extension decisions, cut payment defaults by 50%, and improve collection revenues through more targeted collections.