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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