Trended Solutions: Fueling Profitable Growth
Tags: Consumer Credit Information, Risk Management
This white paper demonstrates that a different way of understanding consumer behavior is the key to creating the necessary strategies to create a profitable portfolio. It will show that considering only a current view of consumer credit does not provide the necessary and precise knowledge about how to market to or underwrite that consumer. You will discover that a "trended" view of the consumer will provide the information required to redefine static lending approaches and to create the breakthrough strategy that will deliver profit.
Because lenders have been focused on managing risk, acquisition strategies have become very conservative and lenders are primarily targeting prime and super-prime consumers. This tendency has increased competition in these segments, but often at the expense of profitability to the overall portfolio. To achieve confident growth, prospecting, acquisitions and portfolio management strategies will need to be updated to create a new understanding of a consumer's risk and revenue potential.