Case Study: a U.S.-based specialty finance company improves auto loan profitability and forecasting with Sigmoid

a U.S.-based specialty finance company improves auto loan forecasting with Sigmoid and <2% error

The customer, a U.S.-based specialty finance company, faced a challenge in accurately forecasting the profitability of a newly acquired auto loan portfolio. Their legacy, segment-based models lacked the agility to adapt to new borrower behaviors. They partnered with Sigmoid to build an AI-powered solution to improve account-level profitability and financial forecasting.

Sigmoid built an AI solution that unified data from multiple sources to create a single view of each account. Their model analyzed over 200 variables to predict key drivers like charge-offs and prepayments. The solution achieved a less than 2% error on lifetime predictions, enabling better decision-making and faster loan prospecting for the client.