Whether you are a traditional bank, financial services company or alternative lender, you are focused on finding new products and more profitable consumers.
To execute, you need better ways to evaluate their credit risk and manage your financial exposure. FactorTrust is committed to offering innovative solutions for reducing your risk in serving underbanked consumers. From data that you will not find anywhere else, to insightful analytics and credit lifecycle solutions, we are focused on helping you make better credit decisions. Here’s how we’re helping others like you or your colleagues and maybe even your competitors to succeed.
See how and why your market is using FactorTrust
This segment is comprised of short-term and installment lenders. Typically, short-term loans are less than $1,000 with terms as short as two weeks and as long as a few months. Installment loans typically range from $1,000 to $5,000 with terms from three months to three years with payments made monthly. Better data allows you to broaden your market opportunity without greater exposure to risk.
A growing class of consumers has the ability to pay a car loan but their traditional credit file is either too thin or challenged to obtain financing from a bank or auto manufacturer. The qualified underbanked community provides an opportunity to safely tap into this growing source of revenue by matching inventory with new and better vetted consumers.
With all of the innovation in the financial services space, where is the growth opportunity? Obviously, finance companies need to attract new consumers. Traditional credit data alone provides little to no insight on the underbanked consumer they should be marketing to. A strategy that utilizes alternative performance data allows a finance company to truly know and grow their customers.
The Bank Card landscape continues its evolution since the credit markets changed so dramatically beginning in 2008. Card issuers have responded by exploring opportunities utilizing new and alternative sources of data, which provide competitive advantages. Having more relevant and timely data allows credit card companies to better manage their portfolio of accounts by mitigating losses and maximizing profits.
For the collections industry, nothing is more important than having access to accurate and recent contact data. Providing more timely and relevant information such as cell phone numbers and email addresses gives the collections industry a new tool in their attempt to recover capital and increase profitability.
Larger financial institutions are looking to grow their customer base and the underbanked population is a prime area of focus. Before, their decisions to extend credit was often based on either thin or non-existent credit files. By broadening their scope to include alternative consumer trade line data, they can expand their addressable customer base while continuing to prevent their potential losses. A growing trend within the credit unions market is extending short-term loans to existing customers, creating stickier and more profitable relationships.
As a result of our struggling economy, changing demographics, and increased competition in insurance, carriers have struggled to sustain premiums. To stay competitive, innovative carriers are developing new products and new ways to meet customer needs. By leveraging alternative data, they are improving ratings, underwriting accuracy and reducing premium shrinkage.
With a mobile phone in virtually every consumer’s hand, where is the growth opportunity? How can wireless and mobile providers increase ARPU (average revenue per user) and reduce churn? Better analytics and modeling derived from recent consumer trade line data helps them steer appropriate consumers from lower revenue pre-paid products to higher yielding post-paid services without exposure to unacceptable risk.