Consumer Credit
New score accelerates risk-based management By Barrett Hasseldine*
Our team of data scientists at illion have unlocked new insights into consumers’ credit risk behaviour, based on key trends from income and expense transactions that have traditionally been hidden. In a post-COVID-19 world, this is the game changer that the market has been looking for – a more sharply focused lens which gives decision makers a clearer picture than they have had before. There are upsides for consumers as well as credit providers, with the key insights needed to unlock more tailored lending terms and conditions and a broader range of
products through enhanced credit underwriting and more suitable loan pricing. This is good for financial institutions who can price more efficiently, lend more responsibly and do so at lower cost, and it is good for consumers who will have an expanded choice and get the products that are right for them, quickly. It’s one of those rare innovations where everybody wins. Our modelling also shows that for personal loans, lenders can increase their portfolio profits by 20%1, considerably reduce risk, and have happier customers.
Profit per Credit Application from each Risk Assessment Scenario
Profit per Application
Barrett Hasseldine
16 CREDIT MANAGEMENT IN AUSTRALIA • July 2021
