| Article ID: | iaor2002769 |
| Country: | United Kingdom |
| Volume: | 4 |
| Issue: | 1 |
| Start Page Number: | 3 |
| End Page Number: | 17 |
| Publication Date: | Jan 1992 |
| Journal: | IMA Journal of Mathematics Applied in Business and Industry |
| Authors: | Hopper Mary A., Lewis Edward M. |
| Keywords: | credit scoring |
Improved measures of account profitability can lead to increased portfolio profitability. Improving technology makes collecting data on the account level easier. Difficulties that can be overcome include the recognition that information suitable for accounting purposes may not be adequate to determine account profitability, and the fact that new strategy designs are based on data that developed in a particular set of contexts in the past, any or all of which may be different in the future. A two-dimensional rank ordering of accounts is a powerful tool. Pitfalls in strategy development are discussed and conclusions are drawn.