LexisNexis Risk Solutions Report Reveals How Financial Institutions Are Regaining Visibility into Consumer Creditworthiness Through Alternative Credit Data
LexisNexis Risk Solutions released its Global Consumer Lending Confidence Report, revealing that 40% of financial institutions reported increased delinquencies in the past year. The study shows that 97% of lenders identify collecting delinquent loans as their primary challenge, while 78% cite issues with visibility into negative payment history. To address these challenges, 66% of respondents are considering expanding the use of alternative credit data. The study, conducted across nine countries with 434 financial institution employees, found that 86% of global lenders feel more confident using alternative credit data compared to traditional methods.
LexisNexis Risk Solutions ha pubblicato il suo Rapporto sulla Fiducia nel Settore dei Prestiti ai Consumatori a Livello Globale, rivelando che il 40% delle istituzioni finanziarie ha riportato un aumento dei crediti in sofferenza nell'ultimo anno. Lo studio mostra che il 97% dei finanziatori identifica la raccolta di prestiti delinquenti come la loro principale sfida, mentre il 78% cita problemi con la visibilità della storia di pagamento negativa. Per affrontare queste sfide, il 66% dei rispondenti stanno considerando di ampliare l'uso di dati creditizi alternativi. Lo studio, condotto in nove paesi con 434 dipendenti di istituzioni finanziarie, ha rilevato che l'86% dei finanziatori globali si sente più sicuro nell'utilizzo di dati creditizi alternativi rispetto ai metodi tradizionali.
LexisNexis Risk Solutions publicó su Informe Global sobre la Confianza en el Crédito al Consumidor, revelando que el 40% de las instituciones financieras informaron un aumento en los incumplimientos durante el último año. El estudio muestra que el 97% de los prestamistas identifican la recolección de préstamos morosos como su principal desafío, mientras que el 78% menciona problemas con la visibilidad del historial de pagos negativos. Para hacer frente a estos desafíos, el 66% de los encuestados están considerando ampliar el uso de datos crediticios alternativos. El estudio, realizado en nueve países con 434 empleados de instituciones financieras, encontró que el 86% de los prestamistas globales se siente más seguro utilizando datos crediticios alternativos en comparación con los métodos tradicionales.
LexisNexis 리스크 솔루션이 전 세계 소비자 대출 신뢰 보고서를 발표하며 40%의 금융 기관이 지난 1년 동안 체납이 증가했다고 보고했습니다. 이 연구에 따르면 97%의 대출자가 체납 대출 수집을 주요 과제로 인식하고 있으며, 78%은 부정적인 지급 이력에 대한 가시성 문제를 언급했습니다. 이러한 문제를 해결하기 위해 66%의 응답자가 대체 신용 데이터 사용 확대를 고려하고 있습니다. 9개국에서 434명의 금융 기관 직원이 참여한 이 연구에서는 86%의 글로벌 대출자가 전통적인 방법에 비해 대체 신용 데이터를 사용할 때 더 자신감을 느낀다고 밝혔습니다.
LexisNexis Risk Solutions a publié son Rapport Mondial sur la Confiance des Consommateurs dans le Prêt, révélant que 40% des institutions financières ont signalé une augmentation des défauts de paiement au cours de l'année passée. L'étude montre que 97% des prêteurs identifient la collecte des prêts impayés comme leur principal défi, tandis que 78% soulignent des problèmes de visibilité sur l'historique de paiement négatif. Pour faire face à ces défis, 66% des répondants envisagent d'élargir l'utilisation de données de crédit alternatives. L'étude, réalisée dans neuf pays avec 434 employés d'institutions financières, a révélé que 86% des prêteurs mondiaux se sentent plus confiants en utilisant des données de crédit alternatives par rapport aux méthodes traditionnelles.
LexisNexis Risk Solutions hat seinen Global Consumer Lending Confidence Report veröffentlicht, der zeigt, dass 40% der Finanzinstitutionen in dem letzten Jahr einen Anstieg der Zahlungsmoralprobleme gemeldet haben. Die Studie zeigt, dass 97% der Kreditgeber das Einziehen von säumigen Krediten als ihre größte Herausforderung identifizieren, während 78% Probleme mit der Einsichtnahme in negative Zahlungshistorien anführen. Um diesen Herausforderungen zu begegnen, ziehen 66% der Befragten in Betracht, alternative Kreditdaten verstärkt zu nutzen. Die Studie, die in neun Ländern mit 434 Mitarbeitern von Finanzinstitutionen durchgeführt wurde, ergab, dass 86% der globalen Kreditgeber sich sicherer fühlen, alternative Kreditdaten im Vergleich zu traditionellen Methoden zu verwenden.
- 86% of global lenders report increased confidence when using alternative credit data
- 66% of institutions are expanding alternative credit data usage to enhance risk assessment
- 40% of financial institutions report rising delinquencies over past 12 months
- 91% expect delinquencies and defaults to remain same or increase over next 12 months
- 59% of global lenders report decreased confidence in traditional credit data assessment
- 78% face challenges with visibility into negative payment history
Insights
The report highlights significant shifts in consumer lending dynamics, with
The transition toward alternative credit data represents a fundamental change in credit risk assessment. With
Forty percent of FIs Report Rising Delinquencies Amid Growing Economic Pressure
Global financial institutions and consumers are navigating economic and regulatory changes. Lenders are seeking more effective ways to predict risk by increasingly turning to alternative credit data to supplement the traditional credit data used by lenders for decades to assess consumer credit risk. According to
Compared to 2023, lenders are less confident in making consumer lending decisions based solely on traditional credit data. Seventy-eight percent (
"Financial institutions attempting to assess creditworthiness with traditional credit data alone are competing with one hand tied behind their back. Lenders must embrace alternative methods," said Kevin King, vice president, credit risk at LexisNexis Risk Solutions. "By leveraging comprehensive data insights, financial institutions enhance their risk assessment capabilities, optimize loan portfolio performance and achieve superior financial outcomes."
The study involved 434 financial institution employees across nine countries, including
Key Findings on Consumer Lending Confidence:
- Top Challenges for Lenders: Ninety-one percent (
91% ) of global respondents expect delinquencies and defaults to remain the same or increase over the next 12 months. Organizations also encounter challenges in attracting new qualified borrowers, retaining existing customers and accessing and using external data. - Waning Confidence in Traditional Credit Data: Compared to a year ago,
59% of global lenders are less confident in their ability to compete in making consumer lending decisions with traditional credit data alone, noting gaps in traditional data's ability to assess credit risk. As regulations change, the use of non-reported financial products increases and credit reporting practices shift, the predictive performance of traditional credit data may be waning. - Adoption of Alternative Credit Data:
86% of global lenders are more confident when making consumer lending decisions using alternative credit data compared to a year ago. This confidence stems from alternative credit data closing visibility gaps in understanding consumer credit health. Lenders currently use alternative credit data for pre-screen marketing, loan origination, portfolio management and collections.
Download the 2024 Global Consumer Lending Confidence Report.
Methodology
The study surveyed 434 individuals globally from financial institutions responsible for lending or risk operations, all possessing significant knowledge of these functions at banks, credit unions, and non-bank lending institutions of varying asset sizes, to explore industry challenges. The survey evaluated their confidence in traditional credit data and the use of alternative credit data and scores in consumer lending. Alternative credit data includes decision-making information that integrates life event insights such as professional licenses, asset ownership, and public records, along with modern credit-seeking behaviors from sectors like online and short-term lending.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta,
Media Contact:
Ade O'Connor
+44 7890 918 264
ade.o'connor@lexisnexisrisk.com
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SOURCE LexisNexis Risk Solutions
FAQ
What percentage of financial institutions reported increased delinquencies in the LexisNexis 2024 report?
How many financial institutions participated in the LexisNexis Global Consumer Lending Confidence study?
What percentage of lenders are more confident using alternative credit data according to the 2024 report?
