The lending industry is data-intensive with massive graveyards of unused and unappreciated credit processing data. As lending firms and credit bureaus face increasing pressure to stay profitable, understanding customer needs and preferences becomes a critical success factor.
But businesses still struggle to make data-driven business decisions, relying instead on all classic strategies — experience, status quo, and “gut feeling” about the right way to do things.
So how Lenders can effectively gain insights from data to make better, data-driven decisions.
The solutions is Data Analytics.”
Data and analytics help firms maximize performance, reduce cost, and improve performance & overall profitability. Using analytics, you can reach out to the right customers and improve customer acquisition. It also assists in efficient delinquency management and comprehensive loan servicing. By increasing the loan life-cycle value, the lenders can retain their most profitable customers.
Being the best in an industry is no longer enough; companies must aspire to be at least at par across industries to compete effectively. So, firms should take the right tactic.
The approach to implementing analytics:
1. Align business goals with analytical outcomes
2. Identify the right analytical partner/tool
3. Identify the best data visualization tools
How can the data and analytics help Lenders?
The consumer lending business is based on the notion of managing the risk of borrower default. Credit scoring systems and predictive models identify the chances of uncertainty and guide in detecting risk. It gives the lenders a clear picture of defaulters. It can help lenders to make faster and more accurate credit decisions.
Key benefits:
1. Reach the right customers with the right products
2. Deliver a superior customer experience through faster on-boarding
3. Identify, target, and retain the most profitable customers
4. Drive-up recovery rates while driving down collection costs
Insight Consultants offer
1. Customized credit models to reduce lending risk
2. Delinquency prediction models to lower loan delinquency rates
3. Workflow automation via ML models which can substantially reduce costs and time associated with internal loan processing and turnaround.
4. Data-driven Customer Segmentation to maximize the value of each customer
5. Improved collection models which segregate risky customers
With several years of experience in the lending domain
Insight Consultants offer a powerful and user-friendly Lending solution that enables informed decision-making through accurate predictions and easy-to-build decision models. If you are looking for ways to harness the power of data analytics.
