BMW Financial Services
BMW Financial Services stands for high-quality services, as does OnGuard. Providing the perfect solution for companies like BMW Financial Services, OnGuard has helped make the company’s credit approval and credit management processes more efficient, more effective and more customer oriented. 'Information from customer relations and credit risk management is now at hand, helping us improve communication with our customers.'
BMW Financial Services started working with OnGuard in 2001. Implemented in The Netherlands and Belgium, OnGuard was chosen to help bring structure to the company’s credit risk management policies. A more customer-oriented approach means that customers are allocated a dedicated credit manager and are divided into groups depending on their risk ratings. Customers are then monitored using customized customer profiles. With this system in place, BMW FS runs its credit management department as efficiently and effectively as possible. Satisfied with the user-friendliness of OnGuard, BMW FS is also pleased with the results: a reduction in DSO from 14 down to 4 days, and a 65% reduction in credit write offs in 4 years.
Results in short
- Effective, efficient and customer oriented use of OnGuard
- Improved qualitative analysis, reporting and use of KPIs.
- Improved efficiency due to strong increase of the percentage automatic credit approvals to 55%.
- Increase in use of direct debits: from 87% to 95% in 5 years.
- Increase of 10% of overall approved credit applications.
- Reduction of credit write offs: 33% in 2007 and 65% since 2004.
- Reduction in DSO: from 14 days down to 4.
- 35% structural reduction of capital assets regarding accounts receivable.
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