The disruptions and digital transformations of 2020 have rapidly accelerated the lending community’s adoption of new tools and applications. The industry is still behind, but the recent embrace of new technology is starting to make the industry as a whole better, faster, and more robust.
We know from conversations with many industry colleagues it can be overwhelming to sift through all the industry noise. But significant change requires bold leadership and a vision for the future. To help, we identified seven tools that will assist your organizations with efficiency, effectiveness, control, and compliance.
Will you watch as the industry changes around you? Or will you lead the way?
Let’s keep it simple. Find tools that proactively send you alerts the moment action by you is beneficial. In some cases, it will be lagging indicators where a borrower has already done something potentially senseless. In other cases, let predictive analytics lead the way – alerts that predict with high probability something is about to happen so you can intercept it in advance. Grow better with triggers.
New and different big data sources continue to find us, made even more powerful when combined with predictive analytics. We can now literally guess a consumer’s next move with a high degree of accuracy. With customer acquisition tools, you can reach the right audience and increase your response and conversion rates through omni-channel targeted marketing. These tools allow you to append custom demographics and channel preferences to fit your exact needs. Be strategic in how you build your business by reaching the right audience at the right time.
You really can “have it all.” You are no longer reliant upon a string of disparate credit products force-fit around your lending model. When you go with a “suite” of bundled products, you can help qualify more borrowers, charting paths to improved credit scores, all at a more affordable price. Establish the best actions to take so you and your client know how to improve their credit score.
Just like above, when you bundle only your most-used verification products, you streamline the process and save money. Verifications shouldn’t be a significant expense. You should be able to pick and choose from a full range of verification solutions and get a custom, flat rate for the whole package. Stay compliant and save money despite rising costs and security risks.
Consumer behavior is king, and a current credit score “snapshot in time” is just one indicator. With Trended Credit Data, lenders can get a clearer picture using data from two years, analyzing behavior more predictive in nature.
Let’s face it, fraudsters get smarter and savvier each day. You must have comprehensive anti-fraud tools to help prevent losses and strife for you and your borrowers. Prevent identity fraud using predictive analysis – all while staying completely compliant. Red flag platforms let you leverage credit bureau fraud alerts, so you fulfill the FACTA Red Flags requirements. Make sure to choose a program that instantly identifies problem files and severity levels, as well as one that will provide recommended actions based upon historical data. Sidestep fraud and save time using a tool that is proven to mitigate risk.
Remember “opposite day” in grade school? That can often ring true in scenarios where you explicitly tell borrowers NOT to fill out new credit applications (e.g. car, furniture, appliances, etc.) while you process the mortgage application. How often do you find out your advice was not taken? You no longer need to be surprised. You can now receive real-time alerts with PreClose Monitoring tools. Receive instant notices when your borrower does anything that could risk your chances of closing the loan. Be the first to know, not the last.
Congrats, you moved your borrowers through the loan closing process. You now have an investment to protect, so it is time to monitor events within your portfolio. Find tools that prompt you to take immediate action to protect existing accounts and avoid a run-off with daily triggers that identify critical credit activity. You can prevent loss with early detection of these negative credit trends: change in payment behavior, delinquent accounts, bankruptcy, and more. Set yourself up to initiate proactive communication with the borrowers in your portfolio. After all, the entire lending universe wants them.
Before you make any decisions, take time to consider your strategy and ability to embrace new technology. You will be expertly set up for success should you deploy these seven tools or derivatives thereof. There are many service provider options but finding a vendor that provides both industry-leading customer service and the technology tools – that is both the art and the science. Here at Informative Research, we offer all seven tools (and many more), and our service is unbeatable. Let us prove it!