Leading indicators: Evolving portfolio management in uncertain times
The potential for an economic downturn in the coming year has quickly escalated to an inevitable global recession. As lenders prepare for these rapid changes, the need to identify early signs of distress within their portfolios will be even more imperative to support customers and help manage risk. What if alternative credit scores could help lenders identify changes in consumer credit behavior that traditional assessments may miss, or see these changes earlier?
ID:A Labs' recent study analyzed half a million consumers across multiple industries and used two scores to monitor these consumers for 13 months starting from the time of their credit or service application. We found that over the course of a year 60% of consumers had significant changes in creditworthiness that a traditional credit score did not detect.
To learn more about the value of alternative credit scores for portfolio management, download the research.