Search
 
Expert Opinion

Today’s Credit Decisioning: Navigating the Current Complexities

Despite challenges, lenders right now have the perfect opportunity to rethink existing processes and rebuild even better.

By Harry Singh | August 20, 2021 at 10:00 AM
Approval stamped on a loan application Source: Shutterstock.

The science of consumer credit decisioning is complex. First, there is the process of access and analyzing the data, and second, there is the applying of strategies and, ultimately, decisions, using that information. With the right tools in place to make sense of data and analytics, credit unions and building societies can test strategies quickly, deploy decisions confidently and deliver on members’ expectations.

Yet the COVID-19 pandemic has changed consumers’ needs and behaviors while upending how lenders assess credit risk and build their decision strategies. Income fluctuations and job losses have impacted how people spend and save, while payment assistance programs, a necessary bridge for many in a challenging year, have distorted the traditional metrics lenders use for credit decisioning.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.