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But this is not the full story. An awful lot more could be done within the existing framework, providing the nec- essary safeguards and authorisations are in place. The most telling reason for the slow take-up, I believe, is that larger lenders’ legacy systems often lack the infra- structure to accommodate big data analytics. The sheer volume of data stored puts a massive strain on the systems that they have, and many lack the advanced analytics to make sense of it in the first place. The larger the organisation, the more likely it will be advised to upgrade an existing system before implementing a more sophisticated data strategy. "The major lenders tend to fall back on long-es- tablished practices and customer bases at the expense of growth and innovation" The end result is that themajor lenders tend to fall back on long-established practices and customer bases at the expense of growth and innovation. This is despite the fact that, by using analytics-driven strategies and tools, they could unlock the potential of their data to reduce costs and increase revenue. Businesses reported an average 8% increase in revenue and a 10% reduction in overall costs as a consequence of utilising big data, according to a 2015 survey from Bar- clays Bank. While this might not be great for the shareholders of large lenders, it pro- vides a really exciting opportunity for

smaller, more nimble finance provid - ers. They are in a great position to partner with one of the many FinTech companies we have in the UK who have the expertise to bring big data to life. For the first time, smaller lenders and new entrants can leverage a compet- itive advantage over larger providers by using new technology. Unrestricted by decision-making inertia, they can swiftly utilise plug- and-play APIs with the support of Fin- Techs that will transform their lending. Many may already have a flavour of what can be achieved through clever use of data via the use of assisted underwriting tools such as Auto Deci- sion Platform (ADP) by LendingMet- rics, which delivers optimal lending decisions in seconds. I do believe that small and medi- um-sized lenders now have a golden opportunity to seize the initiative. More lending is now sourced online than ever, and, with the right technol- ogy and FinTech partner, they can supercharge their business.

In December, the Monetary Policy Committee (MPC) voted to increase the Bank of England base rate from 0.1% to 0.25%, marking the first rise in more than 3 years.

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Christmas spending returns

Christmas spending is on course to return to the levels that lenders saw before the pandemic, but there could be a storm on the horizon in 2022.

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ADP: Product Streams ADP can effortlessly integrate with your product stream. Does it work with your market?

Above: LendingMetrics Managing Director and Chief Technology Officer Neil Williams

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