Digital! Digital! Digital!
The trends are obvious in a general sense, but what’s the best way to take advantage of them? Financial institutions are continuously fighting to keep up with growing consumer demand for products and services that meet their on-the-go lifestyles and deliver the same personalized experiences they’ve come to expect.
To help institutions better understand how certain trends are shaping the direction of the lending industry and what it means for lenders searching for ways to gain a competitive edge, we recently held a complimentary webinar to break it all down. In case you missed it, you can still request a link to the recording below. Here are a few of the questions our experts fielded following their presentation:
Q: How will fintech be able to impact traditional lenders in terms of market share
According to some recent surveys, financial institution executives are still more concerned about direct competitors. But as we know, fintech, peer-to-peer lenders and other alternative players are growing so quickly that this increased competition is reducing margins. As a result, more established and less efficient lenders are losing market share faster than those institutions keeping up with fintech and the evolving consumer appetite. This shift creates a great opportunity for lenders of all sizes to improve their internal processes and target partnerships to incorporate these new players such as Carvana, Geezeo, SD Sharp, MoveCU and RMS, Inc.
Q: As the main (data) sources used, how are the credit bureaus incorporating alternative data into their solutions?
All of the credit bureaus have different databases for alternative data in addition to their traditional credit files. They also have data sources or partners that are constantly testing different types of data. Types of alternative data would include things such as renter’s history, pay-day lending, and payment history for utilities, (cable) television or cell phones. Information such as home sales and insurance payments has also been used as new alternative data sources. Some credit bureaus already use some of this alternative data in their products. An example would include the new FICO score XD, which utilizes typical credit history as well as LexisNexis data and the telecom and utility data housed by Equifax. Equifax, itself, also houses alternative data that it’s implementing within its generic scores delivered to the market.
Q: How do the trends covered in this webinar affect smaller institutions such as community banks and some credit unions?
The trends affecting larger institutions do the same for smaller institutions such as community banks and some credit unions. While operating on different scales of the population, their customer and member bases all reflect the same consumer shift towards the convenience and speed of digital solutions. Smaller institutions might not have the ability to partner with large fintech companies, but they absolutely have the ability to offer digital solutions to achieve the same goals. Like we stated at the beginning of the webinar, you can still compete in the traditional market, which hasn’t lost importance, but also serve the shifting age of the population with the right digital tools on both the front and back ends to capitalize on opportunities presented in the digital era of lending.
With so much demand for the right tools to keep up with the market’s demand for digital solutions, it’s important to find the right solutions provider with both the technology as well as the analytics and business consulting expertise to maximize your ROI. CRIF Lending Solutions is your one-stop shop for all lending and deposit account opening needs to keep up with growing demand for digitalization.
Our webinar last week provided the insights above as well as a wealth of information including:
- Origination experience including the channels and customer experience involved with a digital lending environment
- The available channels (online, mobile and traditional)
- Preferences related to different generations and the biggest factors involved with choosing a lender
- Offerings and decisioning such as lending product trends (volume and risk)
- Value generated by products
- Innovation resulting from the digital revolution and more advanced targeting
- Machine learning techniques and big data applications in the lending industry
- Latest lending fintech available including digital lending platforms that have recently entered the market and are demanded at a rapid pace
Want to learn more? If you missed our webinar or would like to watch it again, please click the link below to request a link to our recording.
Photo Credit: the Italian voice