How Big Data Analytics Helps Toyota Manage Accounts

For those who wonder how big data analytics is being used to help management, the case of Toyota Financial Services (TFS) serves as an illuminating one. TFS finances the ale of cars to customers and carries a portfolio of about $80 billion worldwide.

During the financial recession, delinquencies rose dramatically. The conventional collection techniques seemed to be consuming a lot of resources with mixed results.

TFS implemented a big data approach under which they collected data pertinent to the customers and applied algorithms to optimize the collection processes.

"their teams collaborated to create a new approach that included multiple technologies to assess individual consumers for their risk. FICO had developed an algorithm that allowed TFS to estimate which customers needed attention and the best way to approach each of them. Other technologies included SAS for statistics and predictive analytics, Oracle software and database software, IBM Pure Data (formerly known as Netezza), Tableau Software integrated into the user interface, Informatica for data integration, VMware for virtualization, and more. The solution relies on multiple technologies from multiple vendors and resides in Toyota Financial Services' many data centers."

The combination of optimization techniques, predictive analytics and prescriptive analytics all combined to yield fairer treatment of their customers, better use of resources and a better collections outcome.

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