Resources to prepare your business and consumers for COVID-19 economic impacts

As organizations consider the impacts of an economic downturn, we’ve gathered resources to help you and shared strategies you can implement now.

A Deeper Look at Delinquency

Overall consumer risk scores have been on the rise over the last few years. However, in some products, we’ve seen both point-in-time and vintage delinquencies on the rise as well. Watch the webinar to see a detailed view of shifts in accounts and balances across risk tiers and understand ways to identify changes in consumer behaviors ahead of risk tier shifts. We also provide strategies for managing risk using trended credit data for account management.

From Reaction to Preemption

The first sign most lenders receive of potential borrower trouble is a halt to payments, which is a lagging indicator of risk. This webinar reviews a historical economic event: the oil shock of 2014-2015, and explores the economic impact on Canadian provinces with heavy dependence on the oil industry, helping lenders understand the impact of sudden unemployment.

The Delinquency Gambit: Help or Hindrance?

Lenders often hesitate before extending additional credit to a consumer currently delinquent on a trade as a way to manage loss exposure. Could providing additional liquidity to delinquent borrowers ever improve future performance, or will it always lead to a greater loss? We explore the impact to consumer balances, performance and time to charge off and outline viable strategies for lenders.

The Impact of an Economic Downturn

Lenders can prepare to mitigate risk and weather the storm of a recession, regardless of its severity. Watch the webinar to learn about forecasting deterioration in delinquency rates at the portfolio level, based on macroeconomic and portfolio metrics. We also explain a scenario planning methodology for developing tailored contingency strategies for different levels of performance degradation.

The Evolution of the Consumer Credit Payment Hierarchy

Traditionally, debts associated with basic livelihood dependencies, such as mortgages or auto loans, have been at the top of the credit payment hierarchy. During the Great Recession, the payment hierarchy changed — mortgages became subordinate to cards. We review shifts in the payment hierarchy across different economic cycles and discuss what lenders need to know during a downturn.

Personal Loan Performance During Times of Stress

Many new lenders are poised to experience their first economic downturn and a potential deterioration in loan performance. Learn how we drew upon past market movements and economic events to simulate the survivability of the unsecured loan market in a downturn. We also discuss why stress testing is a valuable exercise for lenders across the consumer product spectrum.

Interpreting Distracted Versus Struggling Payment Behavior

Not all missed payments on existing debt signal a consumer is a higher risk. This webinar reveals the behavior traits of a struggling and essentially higher-risk consumer, as opposed to distracted payment behavior. In times of stress and downturn, it’s important for lenders to distinguish between these types of consumers and adjust their strategies appropriately.

COVID-19’s Impact on Consumer Income and Payment Priorities

Beginning mid-March, TransUnion began surveying and tracking the impact of COVID-19 on consumers’ finances and their ability to meet their obligations. Watch the webinar to learn the details of our findings, including which consumer groups have been most impacted financially and how those trends have shifted since stay-at-home guidelines were first enacted. We also examine which obligations consumers are prioritizing and the steps that consumers are taking to meet potential shortfalls.

A Deeper Look at Delinquency

Watch

From Reaction to Preemption

Watch

The Delinquency Gambit: Help or Hindrance?

Watch

The Impact of an Economic Downturn

Watch

The Evolution of the Consumer Credit Payment Hierarchy

Watch

Personal Loan Performance During Times of Stress

Watch

Interpreting Distracted Versus Struggling Payment Behavior

Watch

COVID-19’s Impact on Consumer Income and Payment Priorities

Watch

TransUnion is committed to helping your organization and the consumers you serve

The dramatic reduction in economic activity from COVID-19 is impacting consumers, who are losing their jobs or suffering financially. Here are resources and solutions to help you serve your customers and mitigate risk in this uncertain time.

We are here to help you manage risk and serve your customers through any market conditions. To learn more about how TransUnion can help your organization, contact your sales rep or fill out the form below.

Monthly Industry Snapshot: Financial Services

To track the rapid changes in consumer behavior and lender accommodations, we’re introducing a monthly summary of key credit metrics for the four major loan categories: credit card, auto finance, mortgage and unsecured personal loans. The Monthly Industry Snapshot will give lenders additional insight on consumer credit trends to help guide crisis response strategies.

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