Tag: underbanked

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Renters Now Have the Opportunity to Establish or Rebui...

By: Kari Michel In January, Experian announced the inclusion of positive rental data from its RentBureau division into the traditional credit file. This is great news for an estimated 50 million underbanked consumers – everyone from college students and recent graduates to immigrants – to build credit with continuous on-time...

Read More Renters Now Have the Opportunity to Establish or Rebuild Credit
Are “fallen angels” a key to economic grow...

As our newly elected officials begin to evaluate opportunities to drive economic growth in 2011, it seems to me that the role of lenders in motivating consumer activity will continue to be high on the list of both priorities and actions that will effectively move the needle of economic...

Read More Are “fallen angels” a key to economic growth?
Despite economic doom and gloom, 60 million creditwort...

By: Kari Michel Credit quality deteriorated across the credit spectrum during the recession that began in December, 2007. As the recession winds down, lenders must start strategically assessing credit risk and target creditworthy consumer segments for lending opportunities, while avoiding those segments where consumer credit quality could continue to slip. Studies...

Read More Despite economic doom and gloom, 60 million creditworthy borrowers exist
Risk reward – The challenge of market entry timing, Pa...

In a continuation of my previous entry, I’d like to take the concept of the first-mover and specifically discuss the relevance of this to the current bank card market. Here are some statistics to set the stage: • Q2 2009 bankcard origination levels are now at 54 percent of Q2...

Read More Risk reward – The challenge of market entry timing, Part 2
Risk reward – The challenge of market entry timing, Pa...

I’ve recently been hearing a lot about how bankcard lenders are reacting to changes in legislation, and recent statistics clearly show that lenders have reduced bankcard acquisitions as they retune acquisition and account management strategies for their bankcard portfolios. At this point, there appears to be a wide-scale reset...

Read More Risk reward – The challenge of market entry timing, Part 1
Underserved market...

By: Kari Michel Most lenders use a credit scoring model in their decision process for opening new accounts; however, between 35 and 50 million adults in the US may be considered unscoreable with traditional credit scoring models. That is equivalent to 18-to-25 percent of the adult population. Due to...

Read More Underserved market