Stone Shore Portfolio Advisors · Consumer Lending Analytics
Strategic risk management — tailored to you.
Who we are
We bring a deep background in consumer lending and alternative lending products to the questions that drive portfolio performance.
Helping senior leaders evaluate portfolio profitability and address a changing risk environment.
Credit, pricing and portfolio analytics for consumer lending businesses and alternative lending products.
Decision makers looking to improve an existing business or expand into a new market, and external ownership looking to improve an existing portfolio or acquire a new one.
Expert independent analysis, backed by a deep background in consumer lending and alternative lending products.
What we solve
Where portfolio economics are unclear, pricing is off, or a new partner or tool needs a hard look.
We assess the overall expected return of the portfolio and identify segments of strength or weakness.
We determine the rate or fee adjustments that optimize both return and volume, at the portfolio level or in a targeted segment.
We engage with vendors or potential partners to determine suitability for the client portfolio.
We identify areas of opportunity for the client's product offering.
We evaluate the strengths and weaknesses of current AI tools and the use of AI in your processes.
Services
Defined project engagements for a specific question, or retained services for ongoing oversight and advice.
A full monthly cash flow review to assess portfolio or segment profitability and determine portfolio value or areas to improve performance.
Reevaluation of economic assumptions, including timing curves, average life, recoveries and expenses.
Review of underwriting rules to find credit holes or areas for potential expansion, including reject inference analysis.
Determine the efficacy of an existing or proposed scorecard and identify potential shortcomings or opportunities.
Determine the value of a 3rd party product or partnership and evaluate its benefits and risks.
Advise on data improvement and work with tech teams to determine best practices.
Rearchitect pricing to maximize overall portfolio profitability, accounting for both return and volume.
Identify gaps across data sources to ensure accurate analysis.
Charge-off, recovery and delinquency tracking with anomaly detection.
Continued support on any project engagement.
BTA, BTL, approved and funded origination metric tracking with anomaly detection.
Ensure existing or in-development code meets requirements.
Advice to senior leaders on request.
Advise leadership on potential improvements to the product offering.
Determine portfolio unit economics using existing assumptions and track overall portfolio health.
Identify processes for improvement within risk workflows.
Case studies
A few examples of the questions we have answered for lenders and their partners.
Partner evaluation
Evaluation of a new client for a credit default insurance product revealed extreme losses that would exceed premiums, as performance fell outside the product design. Further analysis showed that a new scorecard and product offering would be needed to onboard similar ultra high-risk clients. The partnership was declined.
Assumptions
Detailed paydown analysis showed the company's average life and loss timing assumptions were deficient outside of 66–72 month loan terms. Average life and loss timing assumptions were recalculated, refining the unit level economics calculation.
Pricing
To meet a securitization target, leadership planned a 300 bps rate increase across the portfolio. Instead, a pricing optimization strategy was applied to individual portfolio segments, hitting the rate target without changing portfolio unit economics or losing volume to a whole-portfolio price increase.
Unit economics
The lender lacked a loan level unit economic calculation, limiting visibility into segment level pricing and profitability. A unit level calculation was created, opening up opportunities for more detailed pricing.
Let's get started
We start with a conversation about your portfolio, then put a clear proposal in front of you.
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Contact Geoff Hirsch