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The client was one of the leading providers of software solutions and support, specializing in the management of Chapter 7 bankruptcies in the United States.

The challenge was to develop a framework for optimizing adjustments in interest rates being shared between them and their clients. This framework would then be used to optimize returns without affecting market share.

Tata Strategic solutions included the development of an interest sharing model and pricing framework for the client. For this, predictive models were developed to determine probabilities of price negotiation with clients and expected ranges of negotiation. This was done by using logistic regression and multivariate analysis to identify drivers of negotiation.

Benefits included the creation of a dynamic user driven application model for all possible combinations of rate adjustment during a negotiation process. Recommendations also helped the client to design portfolio structuring strategies on the basis of portfolio segmentation, thereby increasing the client’s profitability.