All posts by Guest Contributor

According to our State of Alternative Credit Data research, more lenders are using alternative credit data to determine if a consumer is a good or bad risk

There is a delicate balance in delivering a digital experience that instills confidence while providing easy and convenient account access. When it comes to a frictionless, secure customer experience, consider these findings

Recent research shows Hispanics—especially Millennials who are entering their home-buying years—are particularly eager for homeownership.

A thoughtful segmentation analysis contains two phases: generation of potential segments, and the evaluation of those segments.

A robust segmentation analysis contains two components: first is generation of potential segments, and the second is generation of potential segments.

On May 11, 2018, financial institutions will be required to perform Customer Due Diligence routines for their legal entity customers. Here are 3 facts that you should know

With a maximized approach to collections, you can see an uplift in performance of 5% to 30% in Key Performance Indicators against traditional techniques.

Recognizing customers is more than good service. Identify your customers to spot fraud. It’s a simple concept, but it’s not so simple to do. Consumers expect to be recognized and welcomed wherever and whenever they do business. Here's more insights on recognition and fraud.

From malware and phishing to expansive distributed denial-of-service attacks, the sophistication, scale and impact of cyberattacks have evolved significantly in recent years. Mitigate risk by employing these best practices:

Mitigate synthetic ID fraud before they enter your portfolio with these steps.

Do you have a client who is applying for credit but has placed a security freeze on his Experian file? Here’s how you can help.

Trended attributes and consumer lending Digging deeper into consumer credit data can help provide new insights into trending behavior, providing more than just point-in-time credit evaluation. The information derived through trended attributes can help you understand your customers’: Payment rates and account migration behavior. Slope of balance changes. Delinquency patterns over time. Today’s consumer lending environment is more dynamic and competitive than ever. Trended attributes can give additional lift in your segmentation strategies and custom models and provides a high-definition lens that opens a world of opportunity. Learn more

In 2017, a meaningful jump in consumer sentiment bolstered spending, and caused the spread between disposable personal income and consumer spending to reach an all-time high. This increase in spread was mostly financed through consumer debt, which according to the Federal Reserve Bank of New York has brought total consumer debt to a new peak of $12.8 Trillion surpassing the prior peak in 2008. The Experian eighth annual State of Credit report greatly supported the consumer behavior trends observed for the past year. Spanning the generations  It is no surprise that generation Z (the “Great Recession Generation”) is conservative and prudent in their approach to credit because they are the most familiar with the post financial crisis economy. Results showed Millennials experienced a drop in overall debt, and an increase in mortgage debt reflects the national homeownership affordability challenge facing this generation. As first time homebuyers, millennials have to relatively tighten their spending as they dedicate an ever-growing portion of their income to housing. On the other end of the spectrum, the results of the study showed that Baby Boomers’ had sizable debt (including mortgage debt), which reflects the generation’s intent to stay active in their communities and in their homes much longer than prior generations have done. A recent Harvard study reported that by 2035, one out of three American households will be headed by an individual 65 years of age or older, compared to current ratio of one out of five households. What’s on the horizon? It is reasonable to assume that these trends may continue into 2018, as the underlying conditions continue to persist. A closer eye should be kept on student and auto loans due to the significant increase in portfolio size and increasing default rates compare to other debt.   Editor’s note: This post was written by Fadel N. Lawandy, Director of the C. Larry Hoag Center for Real Estate and Finance and the Janes Financial Center at the George L. Argyros School of Business and Economics, Chapman University. Fadel joined the George L. Argyors School of Business and Economics, Chapman University after retiring as a Portfolio Manager from Morgan Stanly Smith Barney in 2009. He has two decades of experience in the financial industry with banking, credit management, commercial/residential real estate acquisition and financing, corporate finance, mergers and acquisitions, quantitative and qualitative analysis and research, and portfolio management. Fadel currently serves as the Chairman of the Board and President of CFA Society Orange County, and is an active member of the CFA Institute.

Current debt collection process is outdated. The process is driven by the measurement of delinquency and loss and doesn't consider the customer.