Balancing revenue and risk at an uncertain time

Posted by: Centrix
Category: Business
Declined opportunity analysis Business credit tool

Why insight into declined applicants can help you optimise your approvals process

With COVID-19 wreaking havoc on the world economy, 2020 has been a tough year for almost everyone. It’s no different for lenders. Like most businesses, lenders are always on the lookout for opportunities to boost revenue and it can be tempting to approve every applicant that comes along.

But that hunger for growth needs to be tempered with risk analysis and data to make optimal lending decisions.

Our analytics suite – including our new Declined Applications Analysis – delivers data-driven insight leveraging meaningful insights from a vast array of consumer credit data including Comprehensive Credit Reporting (CCR), helping you make better lending decisions and minimising risk.

Have you overlooked opportunity in your declined applicants?

Every lender has a list of applicants who have been declined for a variety of reasons. Many lenders simply forget those applicants after they’re turned down – but insight into their behaviour can help you refine your lending strategy long-term.

Lending is about making calculated decisions based on the data you have. The more data you have, the easier it is to assess the risk of every lending decision.

Our Declined Applications Analysis tool looks at your declined applications and analyses subsequent borrowing behaviour with other creditors. It delivers clear, simple data about applications to other lenders, rates of approval, and repayments – or lack thereof.

Which providers are they applying to? In your industry peer group? What proportion of those applications convert into a new account?

By looking at behaviour patterns after applicants leave your business, you get a better insight into where opportunities have been lost and how lending policies could be optimised.

Patterns, policies, and lost opportunities

Looking at the behaviour patterns of past applicants can also help you predict the behaviour of future borrowers – and understand what’s happening in the lending industry.

Are your competitors approving riskier applications and reaping the benefits? Are you turning down applicants that could deliver much-needed revenue because your credit policies are too strict?

That insight can help you adjust your lending policies and assess your appetite for risk.

Statistics and strategy

It’s a complicated time for business. Many are pushing sales at the expense of operations as they strive to weather the COVID storm and get through with minimal damage.

As you look for ways to boost revenue, decisions need to be based on data – not hypotheticals. With insight from our analytics tools, you can build a business case and make long-term lending decisions and policy changes based on real information.

It’s about optimising your policies and maximising approvals – and capturing lost opportunities before they become your competitor’s customer.

Get in touch to discuss our data-driven analytics suite designed to optimise your lending insights.