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The future of consumer lending: How businesses can achieve customer-centricity at scale

February 18, 2022 by Managing Editor, Experian Decision Analytics

future of consumer lending in a digital economy

*Stats from Experian Global Insights Research

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Full text:

The future of consumer lending in a digital economy

With the advanced technologies available today, businesses can access relevant data and deliver on customer expectations in their moment of need.

As more people go online and use digital channels, your business must do more to create a seamless and secure experience.

  • Online activity has increased by 25% globally
  • Online retail sales saw 4 years of growth in 12 months

Now online, consumers have high expectations for digital experience without sacrificing security, convenience, and privacy.

  • 64% of consumers have abandoned an online transaction in the past 12 months
  • Consumers, regardless of age, now prefer online banking and payments over in-person transactions

The future of credit and fraud risk management is integrating data and technology seamlessly to put the customer at the centre of it all.

  • 74% of businesses are adopting AI (2021), up from 69% the year before

Businesses can embrace customer-centricity at scale through:

  1. Behavioural biometrics within a layered strategy of defence to make it easier to tackle fraud and maintain a seamless customer journey
  2. Open source data so businesses of all sizes can build a view of potential customers, minimise credit risk, and bring more people into mainstream financial services
  3. Advanced analytics, AI, and machine learning for real-time underwriting, fraud detection and a truly personalised service

“The market is now driven by consumer demand for digital services. Those companies that are able to tailor the digital customer journey – so it reflects the best-in-class consumer experience – are the ones that will win.” – Steve Wagner, Managing Director of Global Decision Analytics