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Setting Dynamic Limits for Torpago

  • SMB Underwriting

Heron helps Torpago, a disruptive financial technology solution empowering companies by modernising their credit and spend management, with setting dynamic limits. Hear from Brendan Coons, the Director of Risk at Torpago about why Torpago chose Heron Data to empower their Credit team to maximise their revenue and decrease losses by enriching banking data for their underwriting and portfolio management processes.

Outcomes Achieved

  • 50% Increase in Revenue resulting from setting dynamic limits
  • Up to 96% Underwriting Time Saved from “received” to “approved”
  • Decreased Delinquency Rates Below 1% for 2022 approval vintage, by:
    • More accurately assessing applicants in the initial underwriting stage, by rejecting cases of suspected fraud and underwriting to a higher cash coverage ratio (increased by up to 10x)
    • Monitoring the portfolio to decrease credit limits and exit earlier for customers whose financial position is degrading

The Challenge – Manual intervention and low data diversity makes setting dynamic limits difficult

Prior to using Heron, the Torpago team faced the following challenges:

  1. Low Data Diversity: A low number of key financial data points they could utilise to make a decision for their applicants’ non-Torpago accounts
  2. Manual Summaries: In order to recreate a simple cash-based P&L, everything needed to be manually pulled together into a spreadsheet, requiring a high level of manual effort for non-ideal results
  3. Hard to Monitor Over Time: Portfolio monitoring and setting dynamic limits was difficult, as manually pulling and manipulating the data was very cumbersome

The Solution – Enabling setting dynamic limits with ongoing portfolio monitoring

Now, Heron Data enables Torpago to lend with much greater confidence, due to:

  1. Wealth of Data: A multitude of powerful calculated metrics and enriched financial data points displayed in Heron
  2. Automated Cash-based P&L: Creation of an automatic cash-based P&L “takes literally a matter of seconds” and enables the team to fully understand and assess the company’s financial position prior to making any credit decisions
  3. Easy and Powerful Portfolio Monitoring: Heron enables tracking of Torpago’s book of business performance over time, enabling the dynamic limit setting. This allows Torpago to maximise gains for customers whose finances are improving over time and minimise losses by exiting early for customers whose position is degrading