India's largest platform and marketplace for AI & Analytics leaders & professionals

Sign in

India's largest platform and marketplace for AI & Analytics leaders & professionals
Become a Thought Leader
Become a 3AI Member

Sign in

3AI Digital Library

< Go Back

Foreclosure Property Valuation

3AI August 17, 2020

Largest Global Bank

Problem Statement

  • Need to assess value of foreclosed properties
  • Need to decide between DAVM (Distressed Asset Valuation Model) modeling or to go with the internal BPO (Broker Pricing Opinion) prices

Analytics Led Approach

  • Collateral Valuation using DAVM and the haircut values generated on basis of local economic and housing conditions
  • Spread test based on a control group
  • Created a dashboard to track following metrics:
    • Productivity
    • Sensitivity
    • Accuracy

Business Impact

  • 8% increase in overall realization rate using DAVM model as compared to BPO (Broker Pricing Opinion) model
  • Helped optimize price for sales realization

Critical Success Factors

  • Understanding of various methods of collateral valuation
  • Ability to quantify the impact on property valuation

    3AI Trending Articles

  • Preparing your Business for a Data Revolution

    Featured Article Author: Sidhartha Shishoo, SG Analytics Businesses are gaining the ability to gather data at an unprecedented pace. The Internet of Things (IoT), unstructured data from media, social media, and other digital activities like product purchases and consumer reviews are driving this. Companies now have mountains of data at their disposal, but the knowledge […]

  • Three Avenues to foster an edge to win in Digital Business

    Digital business is the creation of new business designs by blurring the digital and physical worlds. It promises an unprecedented convergence of people, businesses and things that changes existing business models and creates new revenue opportunities. Executing digital business will require a digital platform that evolves as business opportunities and threats change. Also, to enable this, […]

  • The Dynamic Duo of AI and Data: Unlocking Intelligent Solutions and Powering Future Capabilities

    Featured Article: Author: Manoj Suryadevara, Walmart Global Tech Introduction  Artificial Intelligence (AI) and data convergence have emerged as a mighty force driving innovation and reshaping industries worldwide in this digital age. AI enables machines to simulate human-like intelligence while data fuel AI algorithms. This symbiotic relationship between AI and data is at the heart of […]

  • Property Registration in Karnataka to use Blockchain Technology

    Property registration in Karnataka is all set to become more secure and hassle-free, with the state government developing a system based on blockchain technology for online property documentation. The new system, developed in collaboration with IIT-Kanpur, promises an immutable electronic storage of property data through blockchain. In other words, data once stored cannot be changed, […]