Segmentation

Canopy's Segmentation feature empowers lending teams to identify, track, and manage distinct borrower groups based on behavior, risk profiles, and account characteristics. By automatically categorizing accounts with intelligent tagging, lenders can deliver targeted servicing strategies that improve portfolio performance and borrower outcomes.

Why Segmentation Matters

Effective loan servicing requires recognizing that different borrowers face different challenges and present different risks. Without segmentation, valuable opportunities are missed:

• Compliance errors can be made
• Audit risks can occur
• High-risk accounts may not receive timely intervention or be touched by the right group
• Servicing resources get allocated inefficiently or incorrectly
• Communication strategies remain generic and less effective
• Portfolio insights remain hidden beneath aggregated data

Our automated tagging system transforms how you manage your loan portfolio by ensuring the right attention reaches the right borrowers at exactly the right time.

Key Benefits

Regulatory Compliance

Systematically identify and track accounts subject to special regulatory requirements, such as Military Lending Act (MLA), Servicemembers Civil Relief Act (SCRA), or those accounts where a complaint was filed recently, ensuring consistent compliance across your portfolio.

Targeted Intervention

Identify accounts requiring specific attention based on clear risk indicators. Whether addressing early-stage delinquency with gentle reminders or employing more assertive strategies for seriously delinquent accounts, segmentation ensures appropriate response at every stage.

Efficient Resource Allocation

Direct your most experienced representatives to high risk, high-priority segments while automating processes for lower risk servicing needs. This optimization of resources significantly improves operational efficiency and borrower outcomes.

Data-Driven Insights

Understand performance patterns across different borrower segments to refine underwriting criteria, identify emerging risks, and develop more effective servicing strategies. These insights drive continuous improvement across your lending program.

How It Works

Canopy's segmentation system operates through an intelligent tagging mechanism:

1. Automatic Detection - The system continuously monitors account activity and characteristics against predefined criteria
2. Dynamic Tagging - When accounts meet specific conditions, relevant tags are automatically applied. These system tags can only be removed or applied based on system rules. Once these tags are in place, as accounts populate to your portfolio, newly eligible accounts are automatically added, reducing pressure on data jobs and analysts
3. Real-time Updates - As conditions change, tags are added or removed to maintain accurate segmentation--so key members of the Credit Risk, Compliance and Operations team are always in control
4. Actionable Notifications - Your team receives alerts when accounts enter critical segments
5. Comprehensive Reporting - All segmentation data is available through reports and APIs