Banks
From Hindsight to Foresight
Improve Lending Decisions and Reduce Future Repayment Risk
Using Predictive Intelligence that measures and strengthens the two leading drivers of sustainable enterprise value:
1. Revenue Durability
2.Future Revenue Creation Capacity
These two predictions form the foundation of The Alpha Initiative™, helping banks support B2B client companies transform Future Revenue Growth Expectancy, while targeting annual returns that exceed relevant benchmarks.
Two additional predictive measures complete the set to enable banks turn commercial credit underwriting from backward-looking analysis to forward-looking revenue intelligence.
| Predictive Decision Signals | Metrics |
|---|---|
| 1. Revenue Durability Signal |
Customer Validation Visibility™
|
| 2. Cash-Flow & Debt Capacity Signal |
Monetisation Maturity Visibility™
|
| 3. Forward Revenue, Enterprise Value & Refinancing Signal |
Growth Predictor Score™
|
| 4. Predicting Portfolio Performance |
Growth Predictor Index™
|
1. Revenue Durability Signal
The Customer Validation Visibility™ metric is a repeatable predictive measure of a company’s revenue resilience over the next 12 months, specifically its ability to retain and expand existing revenue.
Answers: Are customers likely to continue buying and expanding? (External validation)
Revenue Durability is a metric derived from customers’ ratings of the innovative value they expect a company to deliver in the future, measured on a scale of 1–10. These ratings indicate how effectively the company is adapting to customers’ evolving needs.
By weighting customer expectation scores by current revenue, the Revenue Durability Score estimates future revenue retention, growth potential within existing customers, and ongoing demand for innovation.
What the bank learns:
- Is customer demand sustainable?
- Is revenue concentration risk increasing?
- Are revenues likely to remain durable throughout the lending term?
Credit question answered: “How dependable is future revenue generation?”
Decision Signals: Click here for a 12-month predictive view.
2. Cash Flow and Debt Capacity Signal
The Monetisation Maturity Visibility™ metric predicts an organisation’s capacity to create new revenue over the next 24 months.
Answers: Does the organisation have the capability to generate and capture future growth? (Internal capability)
The prediction is derived from a confidential assessment of the organisation’s collective ability to continuously Adapt, Innovate, and Execute value for customers.
The resulting Future Revenue Creation Capacity score provides an early indicator of future revenue potential. The accompanying analysis identifies the specific organisational constraints that may be limiting revenue creation, restricting growth, and ultimately impacting the durability of future revenue streams.
What the bank learns:
- Can revenues scale efficiently?
- Is pricing power improving?
- Is margin expansion likely?
Credit question answered: “How much additional borrowing capacity can this business safely support?”
Decision Signals: Click here for a 24-month predictive view.
3. Forward Revenue, Enterprise Value & Refinancing Signal
The Growth Predictor Score™ combines data from metric 1 and 2 into a single measure of Future Revenue Growth Expectancy. It does this by measuring changing customer expectations alongside the company’s capacity to convert those expectations into sustained and expanding revenue.
Algorithms predict likely future revenue and growth rate over the next 24 months. Together, these factors provide a forward-looking indicator of growth potential not visible from financials. Detailed analysis pinpoints missed growth opportunities and capability misalignment to accelerate growth.
What the bank learns:
- Is revenue expected to accelerate, plateau, or decline?
- Is credit quality likely to strengthen or weaken?
- What is the probable future risk profile?
Credit question answered:
- “Where is this borrower likely to be 18–24 months from now?”
- “Is the borrower moving toward a stronger capital position and lower credit risk?”
Decision Signals: Click here for a 24-month predictive view.
4. Predicting Portfolio Performance
The Growth Predictor Index™ combines data from a grouping of companies and illustrates a typical portfolio relative to industry average, market average, and top-quartile benchmarks. This data will be generated over time as more investors and companies participate.
Participation
Bank participation is on a case by case basis to suit specific requirements for data sharing.
Banks invite portfolio companies to register on their company platform from where their predictive intelligence is generated. Your clients are given 30 days to explore Growth Predictor’s technology supported by us at no cost. After 30 days companies pay a modest monthly subscription for ongoing access and support.
The Alpha Initiative programme can be viewed here.
Innovation Awards
Judges’ comments: “Powerful new intelligence measures customer demand and future growth potential. This grants financial institutions the ability to analyse companies through a new lens that directly links innovation performance to customers and predicted revenue growth”.
“Since establishing in 2016, Growth Predictor has developed into a pioneering force in business development technology, delivering a powerful platform that enables organisations to understand, predict and accelerate their future revenue by leveraging advanced analytics, strategic insight and organisational engagement”. View more here.