Using new technology and Open Banking to increase lending and reduce the risk of defaults

Kelly said: “We provide value across three core areas; making decisions faster, increasing acceptances and reducing defaults.

“You can imagine there is a growing need for efficiency, better customer experience and better underwriting of risk in those agreements and that’s where open banking adds huge potential value.”

While detailed customer insights reduce risk, they also provide the level of granular detail needed to lend to new customers in underserved markets, for example where there is a lack of credit history.

With detailed data analysis, companies can identify the potential risks in lending to any particular customer and develop their approach accordingly.

In addition, data analysis can identify patterns to predict how customer relationships will develop, to proactively tackle any emerging issues.

You can watch a full summary of the session courtesy of global asset finance software provider White Clarke Group by following the link below.

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