The Consumer Finance segment includes personal loans generally ranging from $300 to $15,000 paid via bi-weekly or monthly installments. The growth in this segment has lately been fueled by a general decline in the availability of traditional consumer credit. In fact between 2007 and 2010, the amount of available consumer credit declined from $887 billion to $433 billion. That’s a loss of half the available credit. While traditional banks have tightened their requirements, it has opened the door for Consumer Finance organizations to step in and fill the void.
The Consumer Finance industry has been historically adept at knowing their customer. But today, they need more input than they receive from thin or non-existent credit files.
Traditional credit data alone will not provide the insight on the underbanked consumer that is attractive to a Consumer Finance company. By incorporating a strategy that utilizes alternative performance data, Consumer Finance companies are best equipped to broaden their customer base and command their share of the market. FactorTrust ensures success by providing the only alternative CRA (consumer reporting agency) with a scoring model built exclusively on proprietary data and a team of in-house predictive analytics experts and statisticians with extensive experience in consumer credit. With the ability to analyze more than 800 existing and derived data attributes, scoring is accurate and dependable.
Solutions that enable you to review loan portfolios to: