How do you know if a prospective borrower is a good risk or a bad one? What is an “acceptable” risk? How can you increase conversions, loan approvals, and profitability without increasing risk or defaults?
Lenders need to make smart, informed decisions based on critical visibility into a borrower’s comprehensive financial picture, but lenders traditionally rely on credit reports and that only reflects a component of the financial picture of the consumer.
Finding the right borrower and determining whether they're a good risk can be challenging. The growing trend among lenders is to look at alternative data – such as a borrower's income through direct deposits, verification of assets and investments, checking account transactions, cash flow, and utility bill payments – to get a deeper understanding of a borrower's expense and spending habits. By gaining a broader view of their financial lives, the lender may develop a different credit profile which may result in a different credit decision.
The Envestnet® | Yodlee® Risk Insight Solutions are designed to provide deeper insights on risk for more accurate and informed credit decisions. It supplements traditional borrower data with transaction-level detail for a more holistic view of borrowers. With our risk insights solution, you can accelerate lending decisions and approve more applications – without increasing risk.
Risk Insight reports is an ideal tool for lenders who deal with borrowers with minimal or no credit file – new borrowers, wealthy clients – borrowers whose credit reports are out of date or whose file just does not represent the complete financial picture.
By providing richer data about spending habits, bill payments, and other alternative data, you can have a better understanding and deeper insights into your borrowers' financial habits and potential risks. You can make more informed lending decisions, improve your loan performance, and grow your bottom line.
To learn how to enable smarter, more accurate, and better informed credit decisions with the Envestnet | Yodlee Risk Insight Solutions, visit our website.
