FC Business Intelligence: Benefiting from Better Credit Risk Management -The Retail and Wholesale Financial Services Credit Risk Analytics Landscape Post-2008
Posted: 19 June 2014 | Source: FC Business Intelligence
The credit risk analytics landscape has changed following the 2008 credit crisis, but has it been for the better? After a period of understandable nervousness over lending, financial services institutions are gradually becoming less risk-averse.
One of the most significant changes to the financial services sector has been the way it assesses customers for credit risk, gathers information and models future customer journeys. Part of this has been driven by regulation introduced to ensure both exposure to bad risk and fraud are reduced, while protecting both the customer and the institution from inappropriate lending.
But the credit crisis also proved to be something of a watershed moment for financial institutions. When many were forced to take a forensic look at their exposure to risk in extreme circumstances, the crisis also paved the way for a far more strategic approach to lending.