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Five Lending Trends to Watch in 2019 – 2 of 5

 

#2: Use Predictive Analytics

Author: John Minor

As 2018 comes to an end, new technology and deeper market knowledge bring more opportunities than ever for lenders to stay on top of regulations changes and better position themselves for the upcoming year. If you are a lender looking to revamp your services, stay updated on this five-part series on top lending trends to watch for in 2019. In this second installment, lenders can learn about the various benefits of using predictive analytics to optimize their portfolios.

Utilizing analytics to optimize portfolios will empower lenders to modify and fine-tune policies and practices to respond to market changes and perform important business functions. In an increasingly data-driven world, lenders who use analytics regularly will stand out because of their ability to integrate all complex functions of payment platforms while identifying most profitable deal sources. Predictive analytics can be applied to better understand profit and loss, in addition to monitoring payments and capturing ratios by weeks, months, or years. Lenders can additionally leverage data to determine key borrower characteristics, eliminate bottlenecks in the lending process, and gain insight on detecting payments fraud and anti-money laundering methods.

Appling analytics to the portfolio can gain lenders additional insights beyond where and why profits and losses occur, such as viewing payment data to see who you want to approve, determining borrower characteristics to indicate potential delinquency risk, and monitoring approval and book-to-look.

To learn more about how using analytics can help lenders view the on-demand webinar.