First Data Announces Data and Analytics Offerings to ARM Industry

First Data Corp. (NYSE: FDC) is launching a family of analytic solutions designed to significantly improve business performance with the introduction of First Data LIFTSM, powered by Intelligent Results.

In early 2007, First Data acquired Intelligent Results, a leader in customer analytics and decision management software, and has since completed integration of the first six LIFT solutions into existing First Data products. The initial rollout of these solutions focuses on collections and marketing applications for financial institutions and receivables management companies.

The LIFT family of solutions combines analytics and data to generate actionable business decisions across the customer lifecycle. The link between analytics and action improves the effectiveness of marketing and collections efforts and helps organizations make daily, time-sensitive decisions regarding which actions to take to improve business performance. Performance improvements include increased revenue, customer satisfaction and profitability.

From a collections perspective, which prospects are the most likely to pay and what dialing intensity will result in payment? Which debtors are more likely to respond to a letter asking for payment? To which accounts should settlement offers be sent and for what amount? Financial institution marketers who are seeking to dramatically improve debit and credit card usage can know who is likely to close their account if no action is taken right away, as well as what needs to be done to prevent attrition.

“Quite simply, business results are determined by the actions you take,” said Sara Bonn, chief product and innovation officer, First Data Financial Institution Services.  “The ability to know what to do, quickly and act once the decision is made can dramatically increase recovery which translates to higher collection rates and ROI. Card portfolio marketers need to know how to increase card usage at the lowest possible cost. First Data LIFT provides collections and marketing managers the data necessary to take more control over decisions and actions while understanding the appropriate level of effort for each account and portfolio.”

The rollout of LIFT solutions currently available for accounts receivable management includes:

• Call Manager: determines the dialing effort needed to maximize payments; i.e. how many calls to make on each account
• Letter Manager: allocates correspondence resources to increase recovery by  focusing efforts on those accounts where it will make the biggest impact
• Settlement Manager: determines the optimal settlement rate for each account
• Outsource Manager: determines which accounts to outsource in order to reduce contingency fees and balance internal resource constraints
• Self-Cure Manager: reduces account attrition and collection costs by identifying accounts that will self-cure, while reducing losses on accounts that are most likely to charge off

The collections-specific LIFT solutions will be available to clients in either a hosted environment, or transaction-based model depending on the degree of flexibility and customization desired. They will be available to First Data clients in mid-June.

The first of an extended family of LIFT solutions designed for use by marketers in financial services is called Usage Manager. The Usage Manager predicts which debit or credit accounts are most likely to experience reduction in card usage, and supports marketing decisions/programs designed to stimulate usage, prevent attrition and more effectively manage points and reward programs.