Tips for Lenders to Tackle Tight Resources

In today’s world of lean teams and tight budgets, lenders need to make smart choices about how they divide resources, prioritize efforts to drive their businesses, and drive new loans while managing risk. Lenders need to understand which of their customers are most profitable - and which ones are more likely to cost them money from delinquencies, defaults, or other personal financial mishaps. 

Data, analytics, and speed are all key to helping lenders build and fine-tune models to keep up with changing market conditions. But many lenders may not have the technology, access to data, or analytical expertise to keep up. Especially, in a world where consumers’ financial situations change in a flash.

Lenders need a unified, cloud-based solution that makes it easy to manage all their data and analytic needs. Lenders can turn to Equifax IgniteⓇ.

With a unified platform, lenders can better meet management imperatives even with fewer resources. So even though hiring has slowed and priorities shift on a dime, lenders can still gain the knowledge they need to meet - or exceed - their acquisition goals plus boost account management strategies. 

Let’s explore some ways that lenders can use Equifax IgniteⓇ to tackle tight resources.

Ease the tech pain

Data management is a huge challenge for many lending analytics and IT teams. Data silos and connecting data across datasets are common problems. Integrating new datasets can take months. And, it is not very efficient to be shifting from one system for data compilation, to another for analytics and modeling, and  another for production.

Instead, lenders can use one platform to overcome their tech pain. For example, analysts can use straightforward point-and-click to load up their firm’s data. They can integrate more data from other resources with Equifax data. All datasets are connected through advanced keying and linking technology that supports identity resolution and removes personally identifiable information (PII). Lenders then have access to, and then connect all datasets to gain a more holistic, combined view of consumer financial behaviors and trends. Plus, data can be updated to ensure modelers have access to the most current information that could impact their model builds. All data can be accessed and analyzed in one place.  

Having a unified environment like Equifax IgniteⓇ can be a huge boon for teams that may be lacking the resources and technology to effectively manage huge datasets.   

Access a broader view of consumer finances 

Almost all lending models rely on credit data. But credit is only one piece of the consumer wallet. Plus, there are millions of consumers that are not captured by traditional credit scoring methodologies. To drive better decisions, lenders need easy access to more data. 

For example, lenders can advance their acquisition and account management analyses by expanding their knowledge about consumers’ finances. For example:

• Which consumers pay their day-to-day bills on time?

• Which consumers rely on specialty finance? Do they reliably meet the terms of those products and services?

• Which consumers might be able to take on more credit based on their affluence or consumer-permissioned bank transaction data?

• Which consumers are likely to have the financial resources to keep spending - and meet financial commitments - even during periods of high inflation and interest rates?

• Is there a faster way to verify employment and income data?

All these additional data points can be explored via datasets in Equifax IgniteⓇ. With easy access to a broader view of consumer finances, lenders can better understand:

•  consumers’ complete financial picture

•  score more consumers for their promotional offers

• and boost their account and risk management efforts

Narrow the analytical expertise gap

Many organizations lack data scientists to build and fine tune models and assess campaign results. Smaller lenders instead need fast answers to their most common tasks. They need to be able to understand how their campaigns are performing compared to the market. And they need to be able to quickly integrate these insights into models so they can get their offers to market faster.

That’s where dashboards and best-in-class pre-built models come into play. Analysts can take advantage of dashboards that are designed to address their most common acquisition-related needs, such as:

• Analyze historical campaign performance to assess current offerings

• Examine both “On You” and “Off You” activity and behavior

• Assess consumer activity of both responders and non-responders

• Drill into credit utilization, tradeline distributions, and product diversity

• Compare campaign performance to peers and other businesses

Then, lenders can incorporate these insights into pre-built acquisition models instead of expending resources. That way they can build and refine models on their own. With a feedback loop, lenders can continue to refine models based on current campaign performance.

Test, test, test, and then test some more

For those lenders that do have a flock of analysts, they likely want to spend a chunk of their day digging in the data. But they may not have the technology available to easily access and manipulate all of that data. Or they may wish they had more options and time to explore scenarios that are most likely to improve ROI.

With Equifax IgniteⓇ, these concerns are readily addressed. Analysts can test acquisition scenarios against virtually 100% of the U.S. credit population including using historical data to assess trends. They can swap in datasets to see which criteria have the most impact on their acquisition goals. They can easily design “what-if” and champion-challenger scenarios that include reject inferencing and machine-learning, AI-based technology. With a visual interface, they can quickly see the impact of changing criteria.

All of that may sound like a dream to time-starved analysts. So even if resources might be tight, analysts can test, test, test. Testing allows analysts to feel more confident in optimizing their acquisition models.

Similarly, lenders can use the platform to speed and advance analysis of their current customer portfolios to better spot risk. With Equifax IgniteⓇ, account reviews can more easily be enhanced with additional data to better identify customers with higher likelihood of delinquency. Analysts can explore which criteria are most predictive of delinquency or default. Lenders can also visualize how changes in customers’ financial behaviors at other lenders impact their risk levels. Importantly, account reviews can be conducted on a regular cadence using up-to-date data without much extra effort on the part of the analytics team. Teams can then respond fast as new higher risk segments are identified.

Advance your analytics during lean times

Equifax is committed to helping your firm drive business, especially when your team can use a bit of extra resources and expertise. As a unified platform, Equifax IgniteⓇ can take the pressure off your analytical and IT teams so you can better work toward your acquisition and account management goals. 

• Expand acquisition audiences - in some cases by scoring up to 21% more consumers

• Market to the right consumers within defined risk parameters

• Identify most profitable customers

• Quickly uncover new sources of risk as customers’ wallets fluctuate

Learn more about Equifax IgniteⓇ to explore your firm’s unique needs.