The economic downturn set off by the pandemic has brought on new challenges for lenders as they continue to navigate managing risk while growing their business in a state of economic volatility. Consumer realities are changing in near real-time where some consumers continue to be a good credit risk while others face uncertain financial futures.
When you combine the lack of stability with a lack of visibility across the consumer market, the need to more accurately assess creditworthiness is one of many challenges lenders face as they look towards growth coming out of the recession.
While lenders continue to leverage traditional credit data, there is an expressed need for insights that are more real-time and comprehensive. Lenders who integrate alternative credit data can assess which thin- or no-file consumers demonstrate positive repayment history beyond traditional channels, and it can highlight if a consumer’s financial picture is strengthening months before it is reflected on their credit file.
Download the white paper to see what a recent Aite Group survey found as some of the other top challenges leading consumer lenders anticipate and how they are leveraging alternative data to drive growth in an uncertain market.
This white paper is presented by LexisNexis® Risk Solutions on behalf of the author. The opinions may not represent the opinions of LexisNexis Risk Solutions. This document is for educational purposes only and does not guarantee the functionality or features of LexisNexis Risk Solutions products identified.