Making informed, data-driven business decisions is essential for lenders. Loan loss analysis is a powerful tool that helps financial institutions identify and understand the characteristics and performance of loans that have been lost to competitors. This process involves analyzing data to determine the status of loan applicants who may have booked loans elsewhere.
Key insights of loan loss analysis
By leveraging loan loss analysis, lenders can gain visibility into certain characteristics when an applicant books their loan elsewhere. These insights include the type of financial institution, average loan amount, interest rate, loan term length, and average risk score.
With this information, you can:
- Improve lead quality and understand the quality and behavior of your applicants to find the most qualified leads for your business.
- Target the right consumers and determine if you’re preapproving the appropriate consumers while monitoring your campaign efficacy.
- Acquire high-quality loans and discover who applicants are booking with, how they performed and whether you need to update your underwriting criteria.
- Increase cross-sell opportunities and see if consumers are applying for loans elsewhere for products similar to the ones you offer.
Experian’s Ascend Intelligence Services™ Foresight solutionenables financial institutions to convert data into actionable insights. Understanding why applicants choose other lenders can help you refine your lending criteria, book higher performing loans and capture more business.
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