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Apr 2021 | Credit Decisions | Consumer Credit Data
By Posted by Natalie Hammond

What’s the recipe for success?

In an economic crisis, having the right data, analytics and technology in your armory to respond and grow is ever more important. But what are the components of successful decisions? With 3 in 4 businesses in the UK seeing greater automation, accuracy and agility – but constrained by budgets and a mix of managing risk, as well as growth, what’s the right recipe for success? How can decisions be optimised, improved and personalised at speed?

For many years, the best decisioning capabilities were the reserve of the biggest players, with the biggest budgets. But thanks to advances in data, analytics and cloud-based platforms, lenders of all sizes can now get easier access to the tools they need to answer today’s tough economic challenges.

We’re living through a tumultuous period. The Covid pandemic hit at a time when many consumers were already exposed – with the furlough and payment holiday schemes only masking the full extent of projected economic hardship. Overlay new regulatory focus, changes in consumer behaviour and the effect of Brexit on various sectors, and understanding exactly who is at risk – and who isn’t – has become more complex than ever.

Complex, but not impossible.

Driving the democratisation of technology 

Advances in artificial intelligence, machine learning and automated technologies, made accessible and affordable through cloud-based applications, now allow lenders of all sizes to understand their customers better and make faster, more accurate decisions.

Having the right cloud-hosted tools in place lets you consume, analyse and interpret vast amounts of data on a granular level – including local and sector-level data, alongside spending, employment and salary information. From this, you can gain a more sophisticated understanding of risk and its impact, managing it at speed and scale through automated decisioning that reduces costs, improves productivity and accelerates sales cycles.

Optimise your risk strategies

Cloud-hosted technologies also allow you to continuously monitor and benchmark your strategies, helping to control change, optimise risk management and identify new opportunities for growth from new prospects and across your portfolios.

Additionally, armed with continuous intel on how, for example, your rejected applicants perform when trading with a competitor, you can achieve greater clarity within your risk strategies.

Save time, money and resources through automation

A key aspect of new decisioning tools is automation. Last year, one in four of the global businesses we spoke to told us that a lack of automation across all commercial functions was an acute challenge. This year, through research commissioned in February 2021, spanning various businesses we see investment in technology to support remote working and automation integration, as the most accelerated priorities.

Globally, businesses are prioritising initiatives toward improving customer decisions and enhancing mobile/digital channels:
Graph demonstrating how businesses are prioritising initiatives towards improving customer decisions

Lenders and regulators alike are focused on driving better customer experiences and outcomes through innovation at every stage of the customer journey – and automation can help with that.

Automation has long been known to reduce friction, but it requires more than just bureau data; you need high-quality data from both traditional and non-traditional sources, continuously managed and aggregated so you always have the best picture of your prospective customers. That’s possible with Experian’s latest-edition cloud-based decisioning platform.

With the inbuilt ability to consume and interpret vast quantities of data, our platform and decision management solutions, allow you not only to make and automate effective decisions, but to ensure they’re always based on accurate, timely and relevant information.

Continuously improve the performance of your decisions

One of the advantages of our platform is that it also gives you the opportunity to continually monitor the performance of your decisions, testing and learning from new models and scenarios, then deploying change at rapid pace. It’s all about helping you mitigate risk, manage customers fairly and increase opportunities to grow your business.

Our latest edition of our decisioning platform helps you adopt the most effective decision-management strategies across the entire customer lifecycle. It takes your customers’ information and enhances it with credit, fraud, bureaux, or your own internal data, then uses predictive scoring models and policy rules to trigger instant, automated decisions.

Trust and transparency 

With advances in AI and automation, any data-based decisions have to be completely fair and transparent. We’ve created an AI-augmented decisioning platform that enables explainable models and decisions, providing transparency across the decision process.

As a complementary module, we’ve also created Fairness-as-a-Service (FaaS) – a new software that uses proprietary algorithms to analyse discrimination and bias in machine-learning models. FaaS has been developed closely with regulators to ensure it exceeds their standards of fairness.

Looking to the future

The structure of the economy has radically changed in the last decade, and we expect it to change further in the coming one. The next two years will see sustained uncertainty as we deal fully with the economic shock caused by the pandemic. Our expectation is that unemployment will peak at a little under 8% (the highest level since 2008), alongside a continued slowdown in spending and investment.

With Experian’s decision management suite, you can more easily understand which parts of your portfolio are likely to be impacted. You can develop robust what-if scenarios, without having to wait for them to become reality, and easily identify stronger segments, to which you can lend more confidently.

As we continue to journey through uncertain times, the one certainty is that Experian has the tools, models, and techniques to help you tackle the challenges of our new economy.

About Experian decisioning

For over 30 years Experian has been helping lenders make intelligent decisions. We provide decision management to the 7 biggest banks, as well as a as well as to a vast array of large and small organisations across a range of industries, including new fintech and start-up companies.

Our next generation decisioning platform operationalises rich data and advanced analytics. Through our cloud-based decision management systems, these attributes are integrated to automate instant decision-making at scale, unlock value, and supercharge your performance – end to end. From finding, understanding and connecting with new audiences, to making credit and lending simpler, faster and fairer for any customer – consumer, or commercial. All while being more efficient, accurate and customer centric.

All of our solutions are configurable, putting our clients in control of their strategy. We can offer rapid-start pre-configured decision systems with integrated data services and workflows, or dynamic systems allowing for customised workflows and integrations. For more detail on our services, or for a free demo or consulting review, please get in touch.