CUES Podcast
CUES Podcast
Sep 9, 2021
CUES 120: Lending in a Two-Lane Economy—an Interview with Harry Singh
Play • 28 min

A new ebook from Experian, Navigating in a New Era of Credit Risk Decisioning, suggests that one out of three consumers remain concerned about their finances at this stage of the pandemic, while at the same time, some individuals have more cash than they had when the pandemic started—and now they’re ready to spend. 

In this episode of the CUES Podcast, Harry Singh talks about how credit unions might best serve their members with loans and other products considering this “two-lane” economy. SVP/decisioning products and solutions for CUESolutions provider Experian, Singh says this situation may get even more pronounced as government stimulus aid ends. He says financial institutions need to consider three areas in their response:

1.      Data and advanced analytics: Credit unions need to create a “comprehensive understanding” of members to be able to best serve them. Singh suggests they need to ask: “What are what are consumers doing differently? What are they adopting differently, such as in digital channels for lending? Are they are they shopping in different ways?”

2.     Personalizing offers to members to boost their engagement: “People always think it’s about buying something new or obtaining credit to do something,” he explains. “We’re thinking about the needs of that consumer at point in time. And it may be they’re getting married and maybe they need to buy a car but it may be they’re in financial difficulty and they need a different type of offer or treatment that helps them through a difficult period, such as the pandemic. But as they come out the back end of it, you know, they become a very, they become a very profitable customer for the lender. So we’re really encouraging our clients to proactively engage their customers.”

3.     Prepare for a wave of delinquency: Some consumers have been taking payment holidays and relying on government stimulus to help them get through the pandemic. As government aid ends, some people will be more challenged to keep up with their credit commitments, Singh points out.

Singh emphasizes that helping members move forward financially will be more reliant on digital delivery than ever before simply because necessity drove more people than ever to use remote service options during the height of the pandemic.

The show also gets into:

  • What digital delivery needs to look like going forward 
  • Why using both traditional and nontraditional data—including synthetic data—is becoming important
  • The roles of subscription services and cryptocurrency
  • The difference between digital self-service and a true digital experience
  • What the next trend in consumer finance and payments might be

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