Tag: creditworthiness

Using alternative data for credit underwriting is a modern and efficent approach to a risk-based credit approval strategy Read more!

A move toward inclusive finance, including incorporating alternative data in credit scoring models, is a crucial step towards promoting financial inclusion.

Today's lenders are using traditional and alternative credit data, including consumer permissioned data, to enhance their credit decisioning.

Credit unions are working toward financial inclusion, but it's a process that requires establishing best practices, partnerships and engaging leadership.

With consumers having more credit options than ever before, it’s imperative for lenders to get their message in front of ideal customers at the right time and place. But without clear insights into their interests, credit behaviors or financial capacity, you may risk extending preapproved credit offers to individuals who are unqualified or have already committed to another lender. To increase response rates and reduce wasted marketing spend, you must develop an effective customer targeting strategy. What makes an effective customer targeting strategy? A customer targeting strategy is only as good as the data that informs it. To create a strategy that’s truly effective, you’ll need data that’s relevant, regularly updated, and comprehensive. Alternative data and credit-based attributes allow you to identify financially stressed consumers by providing insight into their ability to pay, whether their debt or spending has increased, and their propensity to transfer balances and consolidate loans. With a more granular view of consumers’ credit behaviors over time, you can avoid high-risk accounts and focus only on targeting individuals that meet your credit criteria. While leveraging additional data sources can help you better identify creditworthy consumers, how can you improve the chances of them converting? At the end of the day, it’s also the consumer that’s making the decision to engage, and if you aren’t sending the right offer at the precise moment of interest, you may lose high-value prospects to competitors who will. To effectively target consumers who are most likely to respond to your credit offers, you must take a customer-centric approach by learning about where they’ve been, what their goals are, and how to best cater to their needs and interests. Some types of data that can help make your targeting strategy more customer-centric include: Demographic data like age, gender, occupation and marital status, give you an idea of who your customers are as individuals, allowing you to enhance your segmentation strategies. Lifestyle and interest data allow you to create more personalized credit offers by providing insight into your consumers’ hobbies and pastimes. Life event data, such as new homeowners or new parents, helps you connect with consumers who have experienced a major life event and may be receptive to event-based marketing campaigns during these milestones. Channel preference data enables you to reach consumers with the right message at the right time on their preferred channel. Target high-potential, high-value prospects By using an effective customer targeting strategy, you can identify and engage creditworthy consumers with the greatest propensity to accept your credit offer. To see if your current strategy has what it takes and what Experian can do to help, view this interactive checklist or visit us today. Review your customer targeting strategy Visit us

With the pandemic waning, now is the time for financial institutions to take action on financial inclusion. Read on to learn more!

Learn four best practices for improving consumer engagement while furthering your financial inclusion efforts. Read more!

These days, the call for financial inclusion is being answered by a disruptive force of new financial products and services. Read more!

As card issuers go head-to-head in the battle to reach and connect with new consumers, they must implement more inclusive lending strategies.

Download our report to learn why alternative credit data is supplemental and essential to consumer lending and how it’s being used by consumers and FI's.

COVID-19 has had far-reaching economic consequences. When it comes to your consumers' finances, are you seeing the full picture?

Learn the benefits of leveraging alternative credit data to better assess risk at the onset of the loan decisioning process. Read more.

We are excited to announce that Experian has been selected as a Fintech Breakthrough Awards winner in the Consumer Lending Innovation category.

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!

Experian is ushering a new age of consumer empowerment with Experian Boost, which eliminates the guesswork of what goes into a credit score.