Automating Credit and Collections Decisions at AT&T Capital Corporation

George Curnow, Gary Kochman, Steven Meester, Debashish Sarkar and Keith Wilton
Additional contact information
George Curnow: AT&T Capital Corporation, 44 Whippany Road, Morristown, New Jersey 07960
Gary Kochman: AT&T Labs, 101 Crawfords Corner Road, Holmdel, New Jersey 07733
Steven Meester: AT&T Labs, 101 Crawfords Corner Road, Holmdel, New Jersey 07733
Debashish Sarkar: AT&T Labs, 101 Crawfords Corner Road, Holmdel, New Jersey 07733
Keith Wilton: AT&T Capital Leasing Services, 550 Cochituate Road, Framingham, Massachusetts 01701

Interfaces, 1997, vol. 27, issue 1, 29-52

Abstract: AT&T Capital Corporation, the largest publicly held leasing and financing company in the US, owns and manages over $12 billion in assets. In 1992, we began work to enhance the viability and profitability of its small-ticket business. We designed three sets of decision automation systems and the associated decision strategies for front-end credit decisions, life-cycle credit-line management, and delinquent account collections. The majority (73 percent) of the credit-granting decisions in AT&T Capital's small-ticket business are now made automatically, including $685 million in new transactions annually. Productivity gains have enhanced competitiveness by reducing response times and increased profitability by reducing credit and collections operating costs by over $3.1 million annually. Finally, improvements in decision quality have led to business volume gains of $86 million annually, while reducing bad debt losses by $1.1 million annually.

Keywords: financial institutions; decision analysis; systems (search for similar items in EconPapers)
Date: 1997
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