Maximize Value Across the Entire Customer Lifecycle
ADVENTURES IN CONSUMER LENDING:
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Table of Contents:
You are an adventurous consumer lender on a quest to collect the five legendary lending jewels: Auto, Mortgage, Retail, BNPL, and Credit Card. It is said that each jewel contains a secret to consumer lending success, and therefore they are highly sought-after. To successfully retrieve them all, you must complete a mission brief and travel to the five desert islands that, according to legend, are home to the treasure. Will you heed the call to… Choose Your Own Consumer Lending Adventure?
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Mission Brief..............................................
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Auto Amethyst..........................................
8
Mortgage Malachite..................................
10
Retail Ruby................................................
12
BNPL Bismuth............................................
14
Credit Card Quartz....................................
17
Using the Jewels.......................................
19
Examine the Chests..................................
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As a brave and passionate lender ready to explore the wide world of consumer lending, you’re eager to be the best at what you do, and legend has it that the secret to success lies among the five lending jewels. Today, you finally have the opportunity to seek them out as you’ve come into possession of treasure map and a secret scroll detailing the steps you must take to conquer consumer lending. The world of consumer lending is expansive and at times dangerous, unless you have the right tools. And to find the right tools, you must know where to look. That is the pursuit of this quest: discover the right tools to excel in any area of consumer lending, no matter the challenges that lay ahead. Before you set out on your journey, however, you must understand the the realm into which you are entering: The Quest of the Five Lending Jewels
While there are many treasures in the realm of consumer lending, your quest is to find the five lending jewels:
Auto Amethyst
Mortgage Malachite
Retail Ruby
BNPL Bismuth
Credit Card Quartz
The Lending Landscape
Each lending jewel rests inside a chest, containing both challenges and solutions - this knowledge allows the beholder to unlock the true power of that particular lending opportunity. Bolstered by the strength of all five jewels, at the end of this quest you will have the ability to:
253.8 million
$110 billion
10%
Say “yes” to more applications
Reduce your risk of default and fraud
Launch new products faster
US consumers with a loan balance
size of global consumer credit
MEA’s YOY growth of total loan value
What will you do next on your consumer lending quest? (click below to choose your path)
557.7 million
60% increase
Skip to the end of the journey Search for the Auto Amethyst
Over 80%
of LatAm consumers would consider financing plans for purchases
Give up and go home
credit card holders in APAC (only 13%)
of people in UK reliant on high cost short term credit
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Auto Amethyst
You easily navigate to the first island, emboldened by your passion for lending and swift sailing skills. Congratulations! You have found the chest of the Auto Amethyst and are one step closer to collecting all five legendary lending jewels. Before you can unleash the jewel’s secret to success, you must understand both the challenges and opportunities auto lending can offer.
• Real-time approvals No more sifting through piles of paper - technology that enables instant approvals will help you capture customers swiftly and move more cars off the lot. Offer digital applications for both speed and convenience. • Smarter decisions and lower risk
Challenges
• Prolonged application processing time Some lenders still process auto loan applications manually, taking hours to manage masses of paperwork. Aside from rising shopper frustration, the more time you spend on processing a loan for a single customer means the less time you have to reach new ones and help your business grow. • Inconsistent decision accuracy If you’re working with an inflexible loan origination system (LOS) or have to go through manual processes hundreds of times each day, you cannot guarantee the utmost accuracy of your decisions. If you have to change models based on market shifts, it becomes even harder to make smart decisions for each and every application. • Poor customer experience Auto shoppers often spend more than three hours at a dealership when purchasing a vehicle, but their satisfaction begins to fall in half the amount of time. With trust in car salespeople low to begin with, customers expect fast, personalized offers, and if they can’t get it from you, they’ll find it elsewhere.
Data-driven, flexible decisioning takes the guesswork out of approvals. Lower your risk and increase your accuracy with every decision. Respond to economic uncertainty and market variations with ease and without compromising your risk appetite. • Loyal customers Bypass the one-size-fits-all competition with personalized offers powered by AI. Customers will receive instant approvals with the terms that fit their unique needs, building loyalty and turning them into repeat customers for years to come. Examine the Auto Amethyst chest in more depth Continue the journey and seek out the Mortgage Malachite Now the choice is yours… what will you do next? (click below to choose your path)
Go back to the beginning
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You revisit your treasure map with renewed passion and set out to reach the next stop on your journey. Bravo! You have found the chest of the Mortgage Malachite and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities mortgage loans can offer. Mortgage Malachite
• Speedy, simplified loan cycles Reduce inefficiencies with a unified solution that combines data, decisioning, and AI. Connect processes and streamline each step for faster approvals, no matter the complexity. • Support your customers in any economy When it comes to supporting at-risk customers, the most successful lenders are proactive, not reactive. Monitor their account health from the point of onboarding to intervene before the first missed payment. • Reach new customers with alternative data With alternative data like rent and utility payments, employment and salary history, or even social media activity, you can determine the creditworthiness of credit invisibles or applicants with thin credit files. Use both traditional and alternative data to foster financial inclusion and accelerate business growth. Embrace these opportunities with the power of the Mortgage Malachite and you will become a legendary mortgage lender.
Challenges
• Slow and inefficient processes Mortgage application processes take days and even months, rather than hours, due to their highly complex nature, from pre-approval to receiving the actual loan. With so many moving parts, inefficiencies build up, slowing down the loan cycle even further. • Unpredictable economic conditions For mortgage lenders, an unpredictable economy means your customers’ ability to make their payments on time also becomes unpredictable. If you don’t have the right tools in place, it can be a struggle to proactively manage customer accounts before default. • Limited growth opportunities No matter how bold of a lending adventurer you may be, you ideally want to keep your risk as low as possible while reaching the highest number of potential customers. By determining creditworthiness with data from credit bureaus alone, you may never connect with qualified customers that have thin credit files, giving up a low-risk channel for growth.
What’s next? (click below to choose your path)
Continue the journey and seek out the Mortgage Malachite
Examine the Mortgage Malachite chest in more depth
Go back to the beginning
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Retail Ruby
With two jewels down, you’re eager to discover the rest. You see the route to the location of the Retail Ruby takes you through uncharted waters - waters that some say contain a fierce sea beast. You, however, are unconcerned. You’ve taken on far worse than a fierce sea beast: your competition. Well done! You have found the chest of the Retail Ruby and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities retail loans can offer.
• Instant, automated decisions Reclaim the shopping carts of the 60% of consumers who say they are likely to use POS financing over the next six to twelve months. Transform buyers into borrowers with automation that returns more accurate decisions and personalized offers to your customers in under a second. • Go to market quickly Launch new products in record time with decisioning technology that features no-code UI, putting any business user at the helm of innovation. Scale and pivot on demand, or leverage auto-scaling for multiple product lines to help your business evolve on your own terms. • Provide one-click applications Simplify both the frontend and backend with one-click financing processes. Data seamlessly integrates directly into your decisioning platform for instant approvals, saving your customers from having to leave the checkout screen even once. Embrace these opportunities with the power of the Retail Ruby and you will become a legendary retail and point-of-sale lender.
Challenges
• Abandoned shopping carts Research shows that cart abandonment rates can reach as high as 85% on mobile, with an average of 70% abandonment across e-commerce channels. That means every second counts during checkout, and any rent-to-own or other point-of-sale retail financier risks losing customers if they cannot move fast enough. • Inability to scale and adapt Inflexible decisioning systems can keep your business from growing, be it with additional products, locations, or partners. Without the right easy-to-use technology, you cannot meet increased or changing customer demand swiftly and easily, giving your competitors the advantage.
Now what will you do? (click below to choose your path)
• Complicated user experiences Seamless financing integration into a shopper’s experience is no longer a bonus; it is now an expected feature. Each additional click an applicant makes at checkout takes them further from completing the sale - exceptional retail lenders make the experience as simple as possible to avoid cart abandonment.
Continue the journey and seek out the BNPL Bismuth
Examine the Retail Ruby chest in more depth
Go back to the beginning
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BNPL Bismuth
• Leverage alternative data Mitigate risk and make smarter decisions with a combination of alternative and traditional data. BNPL has been hailed as a tool for financial inclusion, and with the right data on your side, you can approve more creditworthy customers while keeping your risk low. • Unify your technology Create a risk decisioning ecosystem with one solution for data, KYC, analytics, and insights. Implement integrated drag-and-drop processes to retrain models around new regulatory or business requirements in real-time across the entire BNPL customer lifecycle. • Future-proof your solution Easily iterate processes and deploy changes quickly to get ahead - and stay ahead - of changing demand. Visualize data with prebuilt dashboards and use machine learning and AI for cutting-edge insights that will power innovation for BNPL 2.0, 3.0, and beyond. Embrace these opportunities with the power of the BNPL Bismuth and you will become a legendary BNPL lender.
As you board your vessel to find the second to last jewel, the jostling of the already-collected treasures against your hip fortifies your resolve. While you suffer a few close calls with rocky jags and hidden sandbars, you manage to come ashore unscathed. Cheers to you, voyager! You have found the chest of the BNPL Bismuth and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities BNPL loans can offer.
Challenges
• Insufficient access to data One of the most appealing features of Buy Now, Pay Later (BNPL) loans is you do not need to perform a hard credit check like other retail/POS financing options - saving you money and your customers a ding to their score. However, without expansive access to both traditional and alternative data, it can be difficult to assess creditworthiness accurately, and that puts you at risk. • Changing regulations are unpredictable With the enormous surge in popularity of BNPL products, legislators across the globe have begun to introduce new regulations for the industry. Using multiple solutions for data and decisioning can be clunky and difficult to adjust, making it burdensome to keep up with the continually morphing requirements. • Preparing for next-gen BNPL Even though BNPL has slowed down in some regions, its adoption is still growing on the whole and transitioning along the way. The evolution of BNPL means new regulations and new channels for growth and innovation. Your decisioning platform must be ready to scale along with the increase in demand that will be propelled by the next generation of BNPL offerings.
Are you ready to complete your quest? (click below to choose your path)
Finish your journey and seek out the Credit Card Quartz
Examine the BNPL Bismuth chest in more depth
Go back to the beginning
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Credit Card Quartz
• Proactively monitor account health With economic conditions slower, it’s easy to predict that some customers will have trouble paying their credit card bills. Instead of waiting around to see which do and sending them to collections, use AI and machine learning for predictive insights across the entire customer lifecycle. Implement early warning signs to identify at-risk accounts and intervene before the first missed payment. • Stop fraud in its tracks Use flexible technology that gets more accurate with every decision it makes to stop fraudsters before they infiltrate your business. With the right data at the right time that feeds into your decisioning engine, you can instantly approve qualified applicants and reject bad actors. • Boost innovation No matter how fierce the competition, adopt technology that makes it easy to test new risk strategies, explore new data sources, and get actionable insights with data science tools. Do it all in real-time with no-code interfaces to iterate again and again without reliance on vendors. You have done well to make it this far, fearless traveler. You have been tested in mind, body, and spirit, but do you truly understand the power you now possess? To complete your collection and retrieve the Credit Card Quartz, you must pass one final test: recite the secrets to lending success.
The wind whips past your face as you speed through the open water, racing toward your destiny to collect the final jewel and wield the secret to consumer lending success. Astonishing work! You have found the chest of the Credit Card Quartz, the fifth and final legendary lending jewel. To learn the jewel’s secret to success, you must understand both the challenges and opportunities credit card loans can offer .
Challenges
• Impending defaults With worldwide economic downturn affecting the global economy, the ability for consumers to pay their credit card bills on time may change for the worse. As an expert lender, you know to expect increased delinquencies in times like these, but only reactively handling defaults means you lose money and customers. • Increased fraud In 2021, payment card fraud increased 14% to over $32 billion lost globally. As fraud gets more complex, it takes more complex data and decisioning solutions to be able to catch deceptive applications. Legacy decisioning technology often can’t filter out the fake applicants quickly enough, leaving you saddled with accounts nobody ever intended to pay off. • Competition with new players BNPL has a reputation for being a less risky, more inclusive alternative to credit cards, with some going so far as to call it a “Credit Card Killer.” While in truth, credit cards and BNPL can play well together, the new entrants have highlighted that the credit card space is ripe for innovation, but it’s up to gutsy lenders like you to rise to the occasion.
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You close your eyes, open your mouth, and the secrets pour from deep within you: Secret 1: Approval speed is essential for world-class customer experience and building a loyal base of repeat customers. Secret 2: If you want to engage new markets while fighting fraud, you need consistently accurate complex decisioning. Secret 3: The economy can be unpredictable but your risk strategy doesn’t have to be - invest in flexible technology that anyone can control to easily respond to market changes. Secret 4: A unified data and decisioning ecosystem that combines traditional and alternative data, an advanced decisioning engine, and machine learning/ AI-driven insights will enable you to prevail over any challenge and seize every opportunity. Secret 5: The real legendary lending jewels were the friends we made along the way. Oops, you didn’t mean to say that last one out loud. But it doesn’t matter. You’ve completed your quest. Now, there’s nothing holding you back from becoming the best consumer lender in the land.
You return triumphantly to your village, having grown in ways you do not yet know. But a question comes to your mind: now that you have the jewels, how can you harness their power? Then it comes to you: you must optimize your loan origination and decisioning platforms. But how? You take the jewels out of their pouch and place them all in front of you. You ask the jewels for guidance and lo and behold, new knowledge appears in your brain. All you needs is: • Modernization Many LOSes and decisioning engines have yet to fully adapt to today’s digitally native, data-driven underwriting processes and sophisticated decisioning capabilities. Incorporate best-of-breed systems that can support everything from waterfall knockout rules to full machine learning models. And don’t stop at today’s technology when you can leverage a future-proof system that continually pioneers new capabilities, keeping you ahead of the competition. • Faster, more accurate decisions Pre-developed data integrations and pre-built decisioning logic just doesn’t cut it anymore. For rapid and accurate data-driven decisioning that you can easily optimize, you need technology that doesn’t take days and external vendors to manage. • Seamless integrations Why rely on one system to handle straight-through processing that leads to unnecessary compromises when you can have it all? Integrate data and decisioning technology seamlessly into your LOS for flexible control, smarter decisions, and scalability.
What will you do now? (click below to choose your path)
Use the five legendary jewels
Examine the Credit Card Quartz chest in more depth
Go back to the beginning
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Examine the Chests
You finally understand that the true fifth and final consumer lending secret is that the right tech will enable flawless operation and innovation, no matter the use case. You don’t need to go on another quest to find the right tech partner to help you unleash the power of the jewels and become the most fearless consumer lender in all the land. You can have Provenir’s AI-Powered Decisioning platform at your side. Just like your path to lending greatness, data and decisioning solutions aren’t one-size-fits-all. Provenir’s technology combines the power of data, decisioning, and AI into a single no-code UI to help you make smarter risk decisions across the entire customer lifecycle. Simplify your data supply chain with real-time access to alternative
Some of the chests that contain the legendary lending jewels may hold further treasure within them. Choose wisely for additional lending insights. Auto Amethyst You had an inkling that there was more, and you were right. The Amethyst was hiding two additional items in the chest: the Pearls of Wisdom.
What will you do?
Continue the journey and seek out the
and traditional data, make more accurate decisions in an instant with flexible, drag-and-drop decisioning processes, and launch new products at record speed with AI-powered optimized business insights. The secret to consumer lending success is the secret to smarter decisioning: Provenir.
Discover deeper insights into auto lending
Access an auto lending success story
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Mortgage Malachite
Mortgage Malachite As you peer into the chest below, you think you see an object in the corner. Is it
What will you do?
Access predictions about mortgage lending
Continue the journey and seek out the Retail Ruby
Go back to the beginning
Get started today at Provenir.
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Retail Ruby Before leaving for your next stop, you see what looks like a hint of light coming from the corner of the otherwise empty chest: retail’s Pearl of Wisdom.
What will you do?
Continue the journey and seek out the BNPL Bismuth
Take the pearl to access a retail lending success story
Go back to the beginning
Bismuth BNPL You turn to leave, BNPL Bismuth in hand, but see an intriguing sparkle come from the handle of the chest. You turn back around to take a closer look: there are two Pearls of Wisdom!
You have shuffled off this mortal coil
What will you do?
Continue the journey and seek out the Credit Card Quartz
Take the first to access deeper insights into BNPL
Take the second to access a BNPL success story
Go back to the beginning
Credit Card Quartz Though you feel incredibly fulfilled, you figure it doesn’t hurt to poke your nose back into the chest. Thoroughness never hurt anyone. Now that the jewel is gone, you feel a dark energy coming from the now empty space.
Didn’t you ever learn to stay away from dark energies?
What will you do?
Go back and use the five legendary jewels
Shut the lid and use the five legendary jewels
Stick your hand into the chest
Go back to the beginning
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