Tag: credit decisions

With predictive custom machine learning models, lenders can target the right audience, score applicants more accurately, and mitigate credit risk.

Experian’s Ascend Intelligence Service platform has been named “Best Consumer Lending Product” in the sixth annual FinTech Breakthrough Awards.

As more consumers apply for credit and increase their spending1, lenders and financial institutions have an opportunity to expand their portfolios and improve profitability. The challenge is ensuring they’re extending credit responsibly and inclusively. Millions of Americans, many of whom are creditworthy, lack access to mainstream credit options. This may be because they have limited or no credit history, negative information within their credit file, or are a part of a historically disadvantaged group. To say “yes” to consumers they otherwise couldn’t or wouldn’t lend to, lenders must gain a deeper understanding of an individual’s stability, ability and willingness to pay. That’s where expanded FCRA-regulated and trended data come in. While traditional credit data has long been the primary means of gauging creditworthiness, it doesn’t tell the full story of a consumer’s financial situation. Let’s explore how differentiated data can help lenders make more informed credit decisions. Using differentiated data for deeper lending Expanded FCRA-regulated data provides supplemental credit data to help lenders gain a more holistic view of their current and prospective customers. Some examples of expanded FCRA-regulated data include alternative financial services data from nontraditional lenders, consumer-permissioned account data, rental payments and full-file public records. Because this data drives greater visibility and transparency around inquiry and payment behaviors, lenders can more accurately determine a consumer’s ability to pay and distinguish between reliable and high-risk applicants. In turn, lenders can approve more creditworthy consumers, grow their portfolios and increase financial opportunities for underserved communities, all while preventing and mitigating risk. 89% of lenders agree that expanded FCRA-regulated data allows them to extend credit to more consumers. Trended data empowers lenders with predictive insights into consumers by providing key balance and payment data for the previous 24 months. This is important as lenders can determine if a consumer’s credit behavior has improved or deteriorated over time. In turn, lenders can: Identify creditworthy customers: Establish if a consumer has a demonstrated ability to pay, is consistently paying more than the minimum payment, or shows no signs of payment stress. Increase response rates: Match the right products with the right prospects. Determine upsell and cross-sell opportunities: Present relevant offers based on anticipated needs and behaviors. Limit loss exposure: Understand the direction and velocity of payment performance to effectively manage risk exposure. Trended data helps lenders better predict future behavior, manage portfolio risk and design the best marketing offers. Turning insights into action Together, trended and expanded FCRA-regulated data benefit lenders and consumers alike. With a more holistic view of their customers, lenders gain powerful insights to lend deeper, ultimately helping them to expand their portfolios and drive greater access to credit for underserved communities. Learn more 1 The Recovery of Credit Applications to Pre-Pandemic Levels, Consumer Financial Protection Bureau, 2021.

Whether looking to increase resources or focus on artificial intelligence and machine learning, growth is the name of the game.

Shri Santhanam, Executive VP and GM of Experian's Global Analytics and Artificial Intelligence talks advanced analytics and AI in lending in recent podcast.

Experian has made the IDC 2021 Fintech Rankings Top 100, highlighting the best global providers of financial technology. Read more!

Incorporating artificial intelligence and machine learning into your business strategy can improve decisioning and reduce risk. Read more.

We surveyed consumers and businesses worldwide about they are stabilizing their finances and returning to growth for our new Global Decisioning Report.

In this latest installment of “working with vendors” let’s dive into some best practices for writing RFIs and RFPs.

If you’re looking to buy new decisioning software, your first inclination might be to issue an RFI or an RFP. However, that may not be the best idea.

Differentiating good customers facing financial struggles from bad actors is getting more difficult, highlighting the need for effective decisioning tools.

Download our case study to learn how home equity lender, Spring EQ, leveraged Experian Boost to help applicants qualify for better loan rates and terms.

Historically, economic hardships have directly impacted loan performance. Are you prepared to navigate and successfully respond to the current environment?

Time is the only resource we can’t get more of, which is why we obsess over saving it. Over the last several years, a new time saver has emerged – APIs.

As we prepare for the excitement and challenges of a new decade, the same can be true for how we approach the use of alternative data. Read more!