Customer needs have changed dramatically over the course of the pandemic, and as some parts of the world begin to move back into what we recognize as normality, the scale of change across today’s credit landscape is now emerging. New research from Experian’s Global Decisioning Report shows how the impact of payment assistance programs, coupled with changes in spending and savings behaviors, now requires lenders to look beyond traditional approaches to decisioning.
Our research found that 1 out of 3 consumers remain concerned about their finances. However, at the same time the research also found that consumers are no longer reducing their discretionary spending as much as they were six months ago, with high-income households starting to spend the most.
These differences make it difficult for lenders to truly comprehend customer needs throughout this abnormal time. This report reveals three things lenders should do to navigate the complexity of the current lending and credit environment:
- Leverage data and advanced analytics – this will ensure lenders have a comprehensive understanding of the risk and opportunity of their portfolio as well as visibility into changes to customer profiles.
- Proactively engage customers – offer new credit and other products to support those that are recovered and ready to engage.
- Prepare for a potential wave of delinquency – as payment holidays come to an end, lenders should make it easy for customers that are still struggling. Lenders must offer online support and flexible terms that help customers solve their problems.
The online customer experience and credit risk management are more connected than ever before. Lenders need to make sure they have the technology in place that supports the entire customer journey, from decisioning, to onboarding, to customer management and collections. Those that do will be able to deliver credit decisions that are fair and fast, giving more consumers access to the credit they deserve.
Experian surveyed nearly 9,000 consumers and 2,700 businesses from around the globe to learn more about how they’re stabilizing their finances and returning to growth.
Download a copy of the eBook here.