New tech trends have transformed the business of lending. Join our panel of pros as we reveal essential technologies and processes that can vastly improve your profitability.
The online loan market is growing fast, and both incumbent traditional banks and more nimble challengers like Alternative Finance Companies (AFCs) are leveraging emerging technologies to stay competitive. In fact, retail and small business lenders can now deliver better customer experiences, increase their market share in the lending market, and ensure long-term profitability.
It all comes down to three technologies — online loan origination, mobile apps, and predictive analytics — and together they’re optimizing credit risk significantly.
The trend has been building for several years. During the financial crisis, the existing process of credit risk management left a number of firms wide open to losses. No surprise. The system relied on data in different silos in conjunction with manual processes — making the entire endeavor prolonged and massively disjointed.
Fast forward several years, and more nimble AFCs are filling niches that incumbent traditional banks are leaving unserved though digitized lending processes. And improving credit risk and underwriting efforts are critical to guarantee that mistakes of the past will not be repeated.
The challenge now is to not only understand how to work with AFCs and their client bases, but also how to adopt the same digitized measures to remain competitive in retail and small business lending.
Indeed, an increasing number of decision makers in the field are turning their attention to credit risk. In 2013, a global survey by the Securities Industry and Financial Markets Association found that 45 percent of firms surveyed planned significant investments in credit risk IT and analytics over the next year. A different survey from InformationWeek found that 45 percent of sell side firms surveyed will increase their focus on risk analysis.
Certainly, lenders are becoming more technologically savvy with enhanced online offerings and mobile apps, focusing on delivering omni-channel customer experiences. The improvement is significant, yet opportunity still awaits.
Incumbents do have existing user bases in their favor. Not only do they have a built-in source of customers, they also have existing data on their lending activity on credit cards, loans, and mortgages — these are immensely valuable for predictive analytics. They also have existing balance sheets that enable them to compete without raising high cost capital.
What they need to do now is create a single, unified view of the customer — one that incorporates personal, transactional, application, and product-selection data. Using this information, taken from every point of interaction with customers, lenders can then perform rich analytics and needs assessment on a detailed, personal level. This opens up important cross-sell opportunities at exactly the right times during the lending process — creating a win-win situation for both lender and customer.
Lenders also need to understand that higher customer expectations require not just better technology, but also improved engagement. Customers now expect real-time pricing data and intuitive, simplified application processes.
So if you’re in the business of lending, you need to consider these new trends, technologies, and challenges to remain competitive in the retail and small business lending landscape — and provide better customer experiences at reduced costs and lower risk profiles.
Join us for this essential webinar to learn how new tech can improve your customer experience, reduce credit risk, and help you cross-sell for maximum potential with your customer base.
Don’t miss out!
In this webinar you’ll:
- Learn the trends driving change in marketplace lending and credit risk management
- Build more accurate predictive ratings models based on alternative data sets
- Get insight into the future of marketplace lending and credit risk management
Scott Crawford, VP of Product and Marketing, Ascend Consumer Financial
Krishna Venkatraman, SVP of Data and Analytics, OnDeck
Terrence McKeown, Practice Manager, Credit Analytics, Envestnet | Yodlee
Wendy Schuchart, Analyst, VentureBeat
This webinar is sponsored by Yodlee.