website header balloon at sunset.jpg

CRIF Lending Solutions Blog

Expert Insight. Forward thinking. Trusted perspective.

Ask the Experts: What Data and Reporting Analytics Can Do for Your Credit Decisioning


I know it’s weird to many people out there that there’s something I actually hate about summer, but my fair-skin brethren out there will certainly agree that sunburns can stand between us and a great summer. That means I’m usually lathering SPF 70-plus lotion while the lucky remainder of folks at the pool, beach or ballgame are trying to balance the right amount of sun for their perfect tans. Balance is key for a lot of people. They don’t want to be at the pale-end of the spectrum like me, yet they don’t want to overdo it either.

Risk is something that grabs the attention of financial institutions, regardless of size. With so much uncertainty given today’s economic and regulatory climate, the right analytics solution – similar to the right sunscreen or amount of sun for a perfect tan – can be leveraged for the right balance to both avoid losses and maximize profits.

To help financial institutions better understand the role of a data and reporting analytics solutions and how it can be used to optimize credit decisioning of any scale, we hosted a webinar in April where our experts walked attendees through everything they needed to know. Following the presentation, they answered some questions from attendees that provided a deeper look at this topic. Here are a few of the questions they fielded:

What kind of data is required to meet upcoming CECL regulations?

This is a complex question since regulators are still trying to define the requirements, so it’s unclear what the financial institution’s responsibilities will be concerning data and analysis requirements. Based on our European experience, where they also have the same uncertainty, regulators want allowances accounting for the life of the loan. So it’s very important to create vintages for a minimum of seven years, which is the duration of an economic cycle, to correlate the performance of the loan with macro-economic conditions. So saving the data and performance such as charge-offs and probability of default is very important.

How complicated would it be to implement a data and reporting analytics solution?

It’s easier than you’d think, actually. During a kick-off session, your provider should clearly lay out what’s needed from the financial institution, but the majority of the information comes from the core system. The data and reporting analytics provider should have a structured approach to link its data with the core system to find a key. It should also be open to adding additional information if the client would like to, but the timeline for coming up with an extraction shouldn’t take more than a couple of weeks. Therefore, the solution should be up and running with the first report within the first three months.

How will a data and reporting analytics solution facilitate the three lines of risk management defense?

For those who missed our previous blog post detailing the three lines of defense, you can read about them by clicking here. First, your solution provides a risk management structure for evidence of practices through reporting and a standard procedure. Second, risk levels are shown through the monitoring of loan characteristics, loan performance and a validation of scores used in the process. Lastly, it confirms business practices and ensures a level of compliance. Your solution should also provide recommendations for improvements or corrective actions that might be needed.

Achieve Data & Reporting AnalyticsFor any institution, regardless of operational scope, CRIF Achieve Data and Reporting Analytics uses our REVEAL Pro solution to help identify deficiencies in your reporting and operations as well as the best ways to address those issues.
If you have questions, our experts have answers. Our April webinar is a great place to start because it provided an overview of how it all works including:

  • How leading financial institutions approach risk management
  • The types of reporting needed most
  • What effective reporting and analytics can do for you
  • Proper credit management guidance
  • Associated compliance/fair lending benefits

To request a link to the recording of this webinar, please click the button below.

Request Our Webinar  Recording Link Today!

Photo Credit: kristin klein

 Prev All Posts Next 

Complimentary Webinar: Learn How SECU Achieved Smart Growth for its Indirect Lending Program

Please join James (Toby) Smith, Vice President of Lending for SECU, and Dave Bazeley from our CRIF Select team Tuesday, Oct. 24, at 2 p.m. ET for a complimentary webinar where we will explain how SECU increased application volume from 955 to 2,088 applications each month and funding amounts from $101.5 million to $238.8 million -- all within the first year.

“It really helped us transition from exponential growth to smart growth,” Smith said. “CRIF Select’s expertise played a tremendous role in that process.”

Register  Today!