In Focus Risk
The future of data and analytics
Technology is at the heart of progress in the HCSTC sector, as well as the wider lending industry
Nick Drew Managing director, CashEuroNet UK
Technology and data analytics play a fundamental part in how the UK consumer- credit industry operates, as they enable companies to make fact-based, timely lending decisions based on the most current information available. This is especially important for those
businesses that serve customers with limited or negative histories, for example those that operate in the high-cost-short-term-credit (HCSTC) industry. For online lenders like ourselves, advanced
analytics have been a driving force in our ability to positively reshape the lending landscape as it has evolved to rightly focus on ensuring affordability and good outcomes for consumers. Our decision engine, Colossus, combines
third-party data with business rules, predictive models, and optimisation routines in order to make operational decisions such as credit underwriting in an instant and at scale. Developed by our parent company,
Enova International, to support each of its online lending brands, Colossus continually learns and improves, allowing us to not only provide smart decisions for each consumer, but also to iterate our models in real-time so we are constantly learning and evolving. Deploying analytics enables lenders to
provide appropriate access to credit to an often underserved segment of consumers, as it allows us to use real-time data to recognise those whose credit scores or payment histories do not accurately reflect their current situation.
38
www.CCRMagazine.co.uk
Deploying analytics enables lenders to provide appropriate access to credit to an often underserved segment of consumers, as it allows us to use real-time data to recognise those whose credit scores or payment histories do not accurately reflect their current situation
By properly serving those customers, we
enable them to access small amounts of credit and build a positive repayment history. And all of this happens because we have
used multiple algorithms and hundreds of data points to provide intelligent underwriting decisions. Somewhat paradoxically, it is technology that enables us to treat each consumer as an individual and not just a single credit score. This approach to lending is an important
tool in creating better outcomes for customers. Research by the Consumer Finance Association and the Social Market Foundation found only one in five recent borrowers cited issues around repaying their loan over a longer period than planned and a similar proportion cited fees for late payment. This demonstrates that we can make
positive decisions for our customers when we use data to our advantage.
Customer expectations As a firm, and as part of the wider HCSTC industry, we understand the importance of creating these positive lending decisions for customers. As we become an increasingly digitalised world, consumers expect online companies to use best-in-class data to benefit them. A recent Fujitsu report found more than a third – 37% – of customers would threaten to leave their banking provider if they do not offer up-to-date technology. That is why we need to always consider customer expectations in terms of the technology we use.
July 2017
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
