Data and the board

Credit risk has become a strategic issue. There has never been a time at which customer insight has been so closely reviewed at board level.

A lot of our clients’ time is focused on navigating this risk environment, and understanding the impact of new regulations. Know your customer activities are becoming far more comprehensive, with a greater level of due diligence around validating income and other wealth factors.

Financial institutions can improve their bottom lines by adopting new data sources within their decision making systems. The world of big data throws up a wide range of new potential sources of insight, but faced with so many opportunities, picking the right data is vital.

The right data will help turn a higher proportion of applications into paying customers, and reduce the cost of bad debt by identifying emerging risks early enough to take action.

Experian has new sources of insight and we are unlocking valuable, untapped pools of data, to make the credit report an even better reflection of customers’ circumstances.

Shared current account data, which shows the amount of money flowing through an account, has improved lenders’ understanding of affordability and how customers will contribute to profitability.

Experian’s new Rental Exchange will, for the first time, provide organisations with the ability to quickly access trusted information that shows how an individual has maintained their rental commitments, and consider it alongside other factors in their existing decisioning processes and scoring models.

This external insight is boosted by efforts to enhance how lenders access information from different internal departments and subsidiaries.

By linking internal and external data from across the organisation, lenders can create a complete, 360 degree picture of each customer, and use this to make even more accurate, sustainable and profitable decisions.

Read the full story and more in FutureProof, our 5th edition full credit industry report.

What role is data playing at a strategic level in your organisation? Please leave your comments below.