When it comes to consumer credit portfolios, the only constant is change. And, unfortunately, when lenders attempt to keep a good grasp on their consumer credit portfolios, change can be a major challenge.
The good news is there are tools to help proactively review consumer credit profiles faster and more frequently. With this type of information in hand, you can now make better risk-management decisions for your portfolio as a whole.
These tools are lending portfolio monitoring solutions. Employing such a system allows lenders to quickly identify, segment and prioritize accounts that meet designated risk levels to improve profitability.
What do lending portfolio monitoring solutions do for you?
They realize deeper insights to optimize strategies. The more in-depth information lenders gain, the better able they are at managing their portfolios in a way that meets goals and gain opportunities. Consistent lending portfolio review provides this.
#1: Predicting a consumer’s capacity to pay so you can improve:
- Credit line management decisions. Proactively understanding each client's credit assists in maintaining smart levels of available debt, reviewing risk, and building profitable portfolios.
- Loan modification strategies. Periodically reviewing your existing portfolio of business flags opportunities for different types of loans that should be marketed to current customers.
#2: Preempt delinquency on accounts that may underperform. A larger, more comprehensive picture of the portfolio in general, and each person's specifically, helps lending institutions make decisions to circumvent issues such as sluggish or non-payment.
#3: Leverage data in stress testing to help meet compliance requirements. Choose from 19 scoring models, depending on your specific initiative. To help you identify specific characteristics of consumer’s credit health, the Data Facts portfolio monitoring product offers pre-configured attribute packages. Choose the attributes most essential to your business—either by selecting one of our packages or by choosing among 200 attributes on a one-by-one basis. Plus, you’ll get added intelligence into credit limits, balances, utilizations, delinquencies and inquiries.
#4: Identify your best customers and increase retention. Frequent and regular reviews are critical to spotting both positive and negative consumer changes and to improving lending decisions. Make it happen with scheduled reminder notifications, which can help you easily stay on top of your portfolio’s performance.
Receive timely data for highly accurate portfolio valuations With Portfolio Review and Monitoring.
#1: Get up-to-date estimations of portfolio value. With lending portfolio review, you can easily keep in touch with relevant information, more often than ever.
#2: See additional credit portfolio information for merger and acquisition decisions.
More frequent portfolio reviews and views of external credit profiles can help financial institutions take action sooner. Lending portfolio review solutions identify both negative and positive changes to accounts inside and outside your institution to understand the impact and improve treatment strategies.
For more information on your consumer credit portfolios, ask your Data Facts Account Executive about our Portfolio Monitoring and Review Solution today!