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Beat Rising Data Costs with a Tiered Data and Decisioning Strategy
Lenders are spending a staggering amount on data. Figuring out which borrowers are most likely to reach payoff status isn’t a cheap process. Between credit reports, income verification, fraud detection, and bank transaction data, underwriting costs add up fast. Data costs can vary, depending on the loan product. Unsecured online loans, for example, require a lot…
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Navigating Model Risk Management in Fintech: A Comprehensive Guide
Effective model risk management is crucial in fintech, where data-driven decisions carry high stakes. It requires following regulatory guidelines, continuously monitoring model performance, and investing in employee education, among other best practices. While the process can be complex, the right mechanisms make it entirely manageable. Understanding Model Development Fintech companies leverage advanced machine learning and…
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The Rise of Buy Now, Pay Later: Embedded Lending Revolution
The world of finance is undergoing a transformation, and at the forefront of this change is the rise of Buy Now, Pay Later (BNPL) services. Embedded lending, particularly through BNPL models, is reshaping consumer finance by offering flexibility and convenience. This blog explores the various lending products within the BNPL ecosystem, highlighting installment loans and…
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Using Data to Navigate Post-Holiday Default Risks
The holiday season often brings a surge in consumer spending, but its aftermath can present significant challenges for lenders. Many borrowers enter the new year juggling credit card bills and loan repayments, creating an environment ripe for increased default risks. By understanding the underlying drivers of these defaults and leveraging advanced analytics, lenders can mitigate…
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Holiday Lending Trends: Insights into Consumer Behavior
The holiday season is synonymous with celebration, generosity—and for many, heightened financial activity. To meet rising consumer demands, lenders must adapt to evolving borrowing patterns, fueled by expenses such as gifts, travel, and festive gatherings. From Buy Now, Pay Later (BNPL) solutions to personal loans, this seasonal surge presents opportunities for growth while highlighting the…
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6 Signs Your Fintech Loan Product Won’t Make It
Most reports indicate that the global digital lending market is valued at more than $11 billion. Yet 75% of fintechs – a statistic that includes online lenders – are expected to fail within their first few years of operation. For those that don’t fail, many don’t realize their profit potential because their loan products aren’t fully optimized. If you…
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AI in Fintech: Why Humans Still Hold the Key in Consumer Lending
Generative AI and machine learning are the new ‘sexy’ across just about every industry, and fintech is no different. Riding this wave of industry disruption are software companies promising banks and lenders more autonomy with user-friendly solutions. Some include drag-and-drop models for real-time underwriting and risk decisioning. No coding necessary. No maintenance needed. Just about…
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5 Common UX Mistakes in Fintech Design and How to Avoid Them
Contributing Writer: Jeff Buchanan, UI/UX Senior Designer People don’t like to feel stupid, and financial products have a high potential to elicit feelings of anxiety, ignorance, and indecision for consumers. As a UX design team, your goal is to first create a connection with potential buyers through non-judgmental empathy and understanding. Then, present your financial…
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A Hurricane is Coming! How Lenders Should Adapt
Hurricane season is here, and Beryl is coming! The first Category 5 storm of 2024 is prompting local governments to issue warnings and residents in her path to take shelter. But Beryl should be a reminder for lenders to be prepared too. Natural disasters impact lives, and consequently, they should impact business strategy. Here are…
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Unraveling Risk Analytics: The Role of Machine Learning in Embedded Lending
In the fast-paced world of finance, understanding and managing risk is essential for success. At Bloom Analytics, we employ advanced technologies to navigate the complexities of risk analytics, particularly in the context of embedded lending. Today, let’s explore how machine learning (ML) serves as a linchpin in our endeavors, driving precision and innovation in identifying borrowers across…
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