Challenge

  1. Accurately evaluate the risk of a portfolio or mix of portfolios in a specific geography in order to determine industries and geographies to invest in or exit.
  2. Accurately evaluate the risk in a particular industry sector across various geographies to support loan portfolio concentration positions to regulators or to improve strategic portfolio mix based on geographic risk differences within an industry sector.

Solution

Powerlytics' proprietary database allows you to select specific industry classifications (over 1,100) in specific geographies (from US to County) and sales ranges in order to view and analyze the average financial statements/ratios and market size of businesses in those industries, regions and sales ranges.  Additionally, the metrics and ratios can be used to create risk scores, such as liquidity, solvency, profitability and growth, to compare the health and attractiveness of industries and geography combinations. Market size data is also available across 80 items including total revenue, level of short and long-term debt and number of businesses.

Result

  1. An easy-to-use dashboard was created to allow granular comparisons of risk and growth factors of multiple industry sectors within a specific geography that could be segmented by the size of business.
  2. An easy-to-use dashboard was created to allow granular comparisons of risk and growth factors of a single industry sector across multiple geographies.

The ability to overlay customer counts and other data to understand share of wallet is also available. A clear and accurate analysis tool allowed for better decision making over loan portfolio concentration strategy, stronger support for regulators and sector exit or investment decisions with comprehensive, granular and accurate data. 

Result 1. Financial performance and risk of multiple industries in a specific geographic region

pl.slideshow.WIDESCREEN.web_141031.pptx

Result 2. Financial performance and risk of the same industry in multiple geographic regions

pl.slideshow.WIDESCREEN.web_141031.pptx