Protecting Your Portfolio and Growing with Confidence

Published: June 15, 2023 by Laura Burrows

Credit portfolio management has often involved navigating uncertainty, but some periods are more extreme than others. With the right data and analytics you can gain deeper insight into financial behaviors and risk to make better decisions and drive profitable growth.

Along with access to an increasing amount of data, advanced analytics can help lenders more accurately:

  • Forecast losses under different economic scenarios to estimate liquidity requirements.
  • Identify fraud by detecting behaviors that could indicate identity theft, account takeover fraud, first-party or synthetic identity fraud.
  • Incorporate real-time and alternative data,1 such as cash flow transaction data and specialty bureau data, in decisioning and scoring to accurately assess creditworthiness and expand your lending pool without taking on undue risk.
  • Precisely segment consumers using internal and external data to increase automation during underwriting and identify cross-sell opportunities.
  • Improve collections using AI-driven strategies and automated debt collection software to enhance operations and increase recovery rates.

It’s imperative to take a proactive approach to portfolio monitoring. Monthly portfolio reviews with bureau scores, credit attributes and specialized scores — and using the results to manage credit lines and loan terms — are critical during volatile times.

View our interactive e-book for the latest economic and consumer trends and learn how to set your portfolio up to succeed in any economic cycle.

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1“Alternative credit data” refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “expanded FCRA data” may also apply in this instance, and both can be used interchangeably.

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