Callcredit Whitepaper Provides Credit Risk Management Insight for Lenders Tackling Recession
Highly regarded credit experts Callcredit Information Group, have analysed the effect of the recession on lenders and documented their findings in a whitepaper - which reveals how automated data solutions can help lenders deal with the crisis.
The whitepaper titled 'The Increasing Value of Data in Credit Risk Management' is comprehensively written by Will North, Marketing Development Manager at Callcredit in which he assesses the economic conditions, the regulatory environment and other market factors affecting financial services organisations. His clear breakdown of the current UK and world economy sets up the latter sections of the document that looks at a solution for lenders - technology assisted credit risk management.
North suggests that understanding customer affordability can keep bad debt losses at an appropriate level for the lender. He emphasises the importance of this against the fact that revenue streams like repayment protection insurance are now reducing dramatically because of the new regulations. The whitepaper describes in full detail how and why such income streams are being affected before highlighting low risk lending as a way forward.
Will North, Callcredit Market Development Manager commented:
'Many Financial Services organisations are unaware of how to leverage significant additional value from their own data assets and how this data can be used to get a more comprehensive understanding of consumers. Hopefully this whitepaper can shine some light on how companies can maximise data to minimise risk associated with lending whilst gaining a greater insight of their customers.'
There are six main sections within the whitepaper with Section 5 'Key Data Considerations' providing particular insight into how valuable pre-existing data can be used, and how by combining different data assets from across an organisations various portfolios it is possible to create a single customer view.
In conclusion North outlines how risk is now more central to lenders' strategies than ever before with the need to deliver low risk lending now a fundamental necessity.
The document can be found via the Callcredit website www.callcredit.co.uk .