Today, the number of consumers with revolving and non-revolving debt is at record levels. While marketing efforts remain a focus for financial institutions, their sights have shifted to customer retention as the credit market shows signs of saturation. To manage their portfolios effectively, lenders need to understand consumer credit behavior over time.
For example, with trended credit data, a lender can identify consumers who have shifted their balance from a credit card to a personal loan. With this insight, the lender can deliver a compelling new APR or balance transfer card to entice the customer and bring their card to top of wallet. Additionally, an auto lender can analyze their portfolio to see whether it is slipping more toward non-prime and adjust underwriting strategy accordingly.
In today’s consumer-first environment, lenders must diligently manage their relationships with customers. Ultimately, both lenders and consumers benefit when the right product is delivered at the right time.