Solving the Delinquency Dilemma

Strategic Insights for Effective Risk Management

360-degree visibility,
a prerequisite for
proactive risk
management.

The rising delinquency trends highlight the urgent need for financial institutions to have a 360-degree view of their customers’ financial profiles. Whether it’s a missed payment or a significant dip in cash flow, a comprehensive perspective enables proactive monitoring and the early detection of financial distress signals.

However, most lenders still struggle with siloed data, which creates several blind spots that impede overall delinquency management. Financial institutions with access to integrated, real-time data are better equipped to respond swiftly and implement tailored interventions, such as personalized payment plans or proactive engagement strategies.

"We want to be able to look at the whole relationship when making decisions about any customer. The advantage we’re seeing is the ability to bring all these disparate data sources together to make our decisions. It enhances our scoring models and our strategies and helps direct the collections department in applying those strategies once they get them."

- Chip Clarke, SVP - Risk Management, KeyBank

Dig deeper with data analytics.

Analyzing transaction data is crucial to understanding customer behavior, preferences, and creditworthiness. Through advanced analytics and timely action, financial institutions can better support their customers while minimizing risk. In case of delinquencies, advanced analytics enable early warnings for lenders to manage customer risks with insights.

Many lenders are already capturing the relevant customer data but have not applied the advanced analytics necessary to act on it.

"As a CRO, Transaction Scoring makes my job more fun and makes me feel more connected to the customer. Not only can we see the types of transactions changing, we know exactly who these customers are. By getting to them earlier and contacting them in their time of need, we've had a positive reaction when it comes to our pre-delinquency and collections strategies. Better predictiveness means more targeted and better outcomes for our customers. And our customers is how we win as a bank."