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How data-driven decisioning helps you acquire the (right) customers faster

Latest technologies allow financial institutions to unleash the power of data to better identify and evaluate potential borrowers.

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  • Written by  Neil Stephenson, Global Vice President of Decision Analytics for Experian
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  • Comments:   DISQUS_COMMENTS
How data-driven decisioning helps you acquire the (right) customers faster

Acquiring new customers is critical to any business, whether you’re a startup or an established global company. But there are unprecedented challenges that make this easier said than done. The growth of FinTech is driving competition, e-commerce has raised the bar for digital experiences, fraud is at an all-time high, and there is pressure to expand businesses more rapidly. Growth is fueled by acquiring the right customers – those you can build lasting, valuable relationships with over time. For lenders, the pressure sits with loan origination, building the case for more informed decisions. 

The good news is that the latest technologies, from artificial intelligence (AI) to cloud computing, and advanced analytics to machine learning, allow financial institutions to unleash the power of data to better identify and evaluate potential borrowers. Access to automated analytics and decision management platforms to process all types of data means you’re better equipped to acquire and manage customers all the way through the process. 

Using advanced data analytics to engage with customers wherever they are 

Consumer expectations continue to change. Whether shopping for goods or services, people expect more personalized experiences. Demand for personalization is especially acute in today’s environment, where consumers have direct access to organizations via multiple channels. It’s not uncommon for borrowers to apply for a loan online, use the call center to ask questions, and visit a branch to close the loan. The key is making that process seamless for the individual regardless of the channel. Today, with the responsible use of data, including financial history and risk information, lenders can apply advanced analytics and smart decision management throughout each stage of the customer journey..  By unlocking the power of data, organizations are better prepared to identify the right customers and make more relevant, timely offers, resulting in a more positive experience for customers, starting with the initial outreach. 

Leveraging data to avoid risks before they are liabilities

To stay ahead of the competition and on the path of sustained growth, businesses need clear line of sight to both risks and opportunities through the origination process.  Thanks to advances in data-driven decisioning, lenders are able to better evaluate both credit and fraud risks before they become liabilities. 

Using predictive analytics, combined with business strategy, lenders can assess more accurately  whether someone is eligible for credit, or if they pose a high risk as a borrower. Lenders can’t only make highly precise, automated credit risk decisions, but they can also tailor the process to the individual (fast-tracking high value, low risk existing customers, for example) and closely align products to ensure they are both suitable and affordable.  

Lenders can also rely on data-driven decisions to better manage the risk of fraud. Automated identity services can rapidly and precisely evaluate loan applicants’ identities to better determine if they are who they say they are. According to Experian’s recent Global Fraud & Identity Report, 84 percent of businesses say they could reduce fraud risk if they were certain about their customers’ identity. The combination of data and advanced analytics provides more certainty about identity, helping to minimize the risk of fraud while providing a seamless process for genuine customers. 

Automating enterprise decision management yields efficiencies and cost-savings

Loan origination doesn’t need to be a time-consuming process; it’s all about having the right tools in place. Replacing cumbersome manual processes with automated data and decision management technology helps lenders assess their prospects’ eligibility and ability to repay the loan more quickly. Having access to more accurate information provides financial institutions and customers with greater confidence, resulting in a positive experience for both parties. 

By automating loan origination processes, you can not only service a greater volume of loans but you can do so with more efficiency and with more success in a shorter period of time. 

Maximize success by using data responsibly to reach and evaluate prospects effectively. Leverage automated decision management to help customers get beneficial services and products they can afford to achieve their goals.

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