Maximize Value Across the Entire Customer Lifecycle
2022
A P AC
W h a t ’ s d r i v ing t he a gend a f or fin t ech s a nd fin a nci a l s e rv ice s in 2022? P u l s e a nd P rov eni r surv e y ed 100 deci s i o n - m a ke rs in fin t ech s a nd fin a nci a l s e rv ice s or g a ni z a t i o n s in t he A P AC r egi o n to find out w h a t t he y belie v e w ill be t he bigge st ch a llenge s , opportu ni t ie s a nd tr end s o f 2022 a nd h ow t he y p l a n to a dd r e ss t hem w i t h d a t a , AI a nd deci s i o ning .
D a t a c o llec t i o n : O c to be r 13 D ecembe r 21, 2021
R e spo nden ts : 100 F in t ech deci s i o n - m a ke rs in A P AC
T he l a ck o f d a t a a cce ss , effec t i v e AI , a nd a cen tr a li z ed v ie w o f d a t a a c ross t he c usto me r lifec y cle a r e ke y ch a llenge s f a cing deci s i o n - m a ke rs to d a y . T he r e i s a cle a r c o n s en sus 91 % a m o ng m ost deci s i o n - m a ke rs t h a t d a t a i s n ot e a s il y a cce ss ible , le a ding to stru ggle s w i t h t hei r or g a ni z a t i o n ’ s c r edi t r i s k str a t eg y . C o m pou nding t hi s i s t he l a ck o f a cen tr a li z ed v ie w o f d a t a a c ross t he c usto me r lifec y cle 69 % a nd t he in a bili ty to ut ili z e m a chine le a r ning / AI to im prov e m o del p e r f or m a nce 67 % .
W hich o f t he f o ll ow ing d o you c o n s ide r to be t he bigge st ch a llenge ( s ) w i t h your or g a ni z a t i o n ’ s c r edi t r i s k str a t eg y to d a y ?
D a t a i s n ot e a s il y a cce ss ible
91 %
D o n ot h a v e cen tr a li z ed v ie w o f d a t a a c ross t he c usto me r lifec y cle U n a ble to ut ili z e m a chine le a r ning / AI to im prov e m o del p e r f or m a nce D a t a v i su a li z a t i o n a nd r e port ing i s n ot in tu i t i v e
69 %
67 %
65 %
L imi t ed a cce ss to a l t e r n a t i v e d a t a sour ce s
60 %
T oo de p enden t o n v end ors to m a ke ch a nge s
57 %
C a n ’ t m a ke c r edi t r i s k deci s i o n s in r e a l t ime
50 %
M o del s a r e diffic u l t to de p l oy
43 %
29 %
M o del s a r e n ot pr edic t i v e
D o n ot h a v e a de qu a t e in t e r n a l r e sour ce s
15 %
L imi t ed / n o v i s ibili ty in to deci s i o ning p e r f or m a nce / im p a c t o n t he b us ine ss
2 %
AI - en a bled c r edi t deci s i o ning i s deci s i o n - m a ke rs #1 p l a nned in v e st men t in 2022.
F o ll ow ing cl os el y behind AI - en a bled c r edi t deci s i o ning , r e spo nden ts p l a n to in v e st in pro d u c ts t h a t en a ble fin a nci a l incl us i o n 82 % .
I n w hich o f t he f o ll ow ing d o you p l a n to in v e st in 2022?
P l a nning to in v e st
N ot p l a nning to in v e st
AI - en a bled c r edi t deci s i o ning
83 %
17 %
P ro d u c ts t h a t en a ble fin a nci a l incl us i o n
82 %
18 %
R e a l - t ime c r edi t r i s k deci s i o ning p l a t f or m
79 %
21 %
D igi t a l w a lle t
77 %
23 %
E mbedded fin a nce
57 %
43 %
B uy n ow , p a y l a t e r B NPL
55 %
45 %
S up e r A pps
46 %
54 %
A l t e r n a t i v e d a t a f or c r edi t r i s k
44 %
56 %
AI a nd l ow / n o c o de U I a r e t he two m ost im port a n t fe a tur e s deci s i o n s - m a ke rs h a v e or w a n t w hen s elec t ing a n a uto m a t ed r i s k deci s i o ning syst em .
A lm ost a ll 94 % r e spo nden ts ei t he r c urr en t l y h a v e AI or p l a n to in v e st in t he t echn o l o g y in 2022.
W hich o f t he f o ll ow ing fe a tur e s d o e s your a uto m a t ed r i s k deci s i o ning syst em c urr en t l y incl u de / w ill be im port a n t in your s elec t i o n ?
C urr en t l y h a v e fe a tur e / wou ld be m ost im port a n t
P l a n to in v e st in 2022
N o p l a n to in v e st in 2022
L ow / n o c o de U I
86 %
13 %
1 % N o p l a n to in v e st in 2022
AI P r edic t i v e A n a l yt ic s / Ma chine L e a r ning )
15 %
6 %
79 %
D a t a I n t eg r a t i o n
76 %
22 %
2 %
R e a l - t ime deci s i o ning
17 %
9 %
74 %
B us ine ss I n t elligence
64 %
32 %
4 %
M o del l a ng u a ge a gn ost ic
7 %
38 %
55 %
C a s e Ma n a gemen t
47 %
44 %
9 %
A l t e r n a t i v e D a t a
11 %
46 %
43 %
F r a u d pr e v en t i o n a nd op e r a t i o n a l efficienc y a r e t he top pr i or i t ie s f or t echn o l o g y in v e st men ts in 2022.
I n 2022, deci s i o n - m a ke rs a r e l oo king to t echn o l o g y to hel p pr e v en t f r a u d 87 % , im prov e op e r a t i o n a l efficienc y 78 % , a nd inc r e a s e t hei r m o bile pr e s ence 66 % .
W h a t ch a llenge s / opportu ni t ie s d o you p l a n to a dd r e ss v i a t echn o l o g y in 2022?
87 %
78 %
66 %
66 %
61 %
59 %
56 %
53 %
28 %
22 %
F r a u d pr e v en t i o n
I m prov ing op e r a t i o n a l efficienc y
I nc r e a s ing m o bile pr e s ence
R i s k mi t ig a t i o n
C usto me r e xp e r ience a nd r e t en t i o n
I nc r e a s ing c o m p e t i t i o n f ro m ne w p l a y e rs
A c qu i r ing ne w c usto me rs
I nc r e a s ing r eg u l a tory c o m p li a nce
D igi t a li z a t i o n
R e a l - t ime a pprov a l s
0 % O t he r
D a t a in t eg r a t i o n i s t he bigge st im p edimen t to us ing a l t e r n a t i v e d a t a .
W hile t he r e a so n s f or us ing a l t e r n a t i v e d a t a a r e cle a r , a m a j or i ty o f r e spo nden ts 60 % s a y t hi s d a t a i s n ot e a s il y in t eg r a t ed in to t hei r c urr en t so l ut i o n .
W h a t a r e your bigge st b a rr ie rs to a cce ss ing / us ing a l t e r n a t i v e d a t a ?
60 % A l t e r n a t i v e d a t a i s n ot e a s il y in t eg r a t ed in to our c urr en t deci s i o ning so l ut i o n
51 %
A l t e r n a t i v e d a t a i s n ot a cce ss ible to m y or g a ni z a t i o n 50 %
50 %
T he d a t a i s too u n stru c tur ed
N ot c o n v inced o f t he v a l u e
20 % T oo m a n y c o m p li a nce r i s k s
I m prov ing f r a u d de t ec t i o n a nd pr e v en t i o n i s t he top r e a so n r e spo nden ts us e a l t e r n a t i v e d a t a in c r edi t r i s k a n a l ys i s .
65 % o f r e spo nden ts us e a l t e r n a t i v e d a t a to im prov e f r a u d de t ec t i o n a nd pr e v en t i o n w hile 48 % h op e to r e a ch a bigge r a u dience o f pot en t i a l c usto me rs .
W h a t a r e your pr im a ry r e a so n s f or us ing a l t e r n a t i v e d a t a sour ce s in c r edi t r i s k a n a l ys i s ?
I m prov e f r a u d de t ec t i o n a nd pr e v en t i o n 65 %
M or e a cc ur a t e c r edi t s c or ing 42 %
A l t e r n a t i v e d a t a i s n ow a v a il a ble 36 %
R e a ch a bigge r a u dience 48 %
30 % O ur c o m p e t i tors a r e d o ing i t
21 %
W e d o n ’ t us e a l t e r n a t i v e d a t a
S e rv e t he u nde r b a nked / u nb a nked 46 %
A ge v e r ific a t i o n , KY C a nd inc o me v e r ific a t i o n le a d t he p a ck f or top typ e s o f d a t a us ed in r i s k deci s i o ning .
A ge v e r ific a t i o n 88 % , KY C 87 % a nd b a nk a cc ou n t v e r ific a t i o n a nd v a lid a t i o n 76 % a r e t he top sour ce s o f a l t e r n a t i v e d a t a us ed in r i s k deci s i o ning b y r e spo nden ts .
W hich o f t he f o ll ow ing sour ce s o f a l t e r n a t i v e d a t a d o you c urr en t l y incl u de in your r i s k deci s i o ning ?
88 %
A ge V e r ific a t i o n
KY C K n ow Y our C usto me r
87 %
I nc o me V e r ific a t i o n & Va lid a t i o n
76 %
B a nk A cc ou n t V e r ific a t i o n & Va lid a t i o n
73 %
A l t e r n a t i v e C r edi t R i s k
71 %
70 %
C r edi t R i s k
67 %
F a ci a l B i o me tr ic s
61 %
O p en B a nking
E m p l oy men t V e r ific a t i o n
56 %
D o c u men t V e r ific a t i o n & Va lid a t i o n
51 %
47 %
I den t i ty & V e r ific a t i o n
39 %
F r a u d
KY B K n ow Y our B us ine ss
37 %
37 %
C o llec t i o n s
27 %
A ff or d a bili ty
10 %
S o ci a l M edi a
F or 91 % o f r e spo nden ts , f r a u d pr e v en t i o n i s a m o ng t he pr im a ry d r i v e rs o f t hei r in v e st men ts in AI - en a bled r i s k deci s i o ning . 75 % o f r e spo nden ts s eek to a uto m a t e deci s i o n s a c ross t he c r edi t life c y cle . F r a u d pr e v en t i o n i s t he bigge st d r i v e r f or in v e st men ts in AI - en a bled r i s k deci s i o ning .
91 %
W h a t i s t he pr im a ry d r i v e r f or a n y in v e st men ts you ’ v e m a de / w ill m a ke in AI en a bled r i s k deci s i o ning ?
75 %
68 %
60 %
55 %
54 %
52 %
51 %
37 %
F r a u d pr e v en t i o n
A uto m a t e deci s i o n s a c ross t he c r edi t lifec y cle
C ost s a v ing s a nd op e r a t i o n a l efficienc y
M or e c o m p e t i t i v e pr icing
I m prov e c usto me r e xp e r ience
I m prov e fin a nci a l p e r f or m a nce
M or e a cc ur a t e r i s k pro file s
G row m a r ke t s h a r e w i t h u nde r b a nked / u nb a nked popu l a t i o n s
I nc r e a s e m a r ke t diffe r en t i a t i o n
O nl y 7 % o f r e spo nden ts begin to s ee a n y r e tur n s f ro m t hei r AI in v e st men ts w i t hin 120 d a ys .
75 % o f r e spo nden ts did n ot s ee a pos i t i v e RO I u n t il 4 5 m o n t h s a f t e r im p lemen t a t i o n .
H ow l o ng a f t e r im p lemen t ing AI ( pr edic t i v e a n a l yt ic s / ML did you begin to s ee pos i t i v e RO I ?
75 % 121 150 d a ys
6 % 61 120 d a ys
16 % M or e t h a n 150 d a ys
2 % W e h a v e n ot im p lemen t ed AI
1 % 0 60 d a ys
C o nfidence in c r edi t m o del a cc ur a c y i s l ow
O nl y 16 % o f r e spo nden ts belie v e t hei r c r edi t r i s k m o del s a r e a cc ur a t e a t le a st 75 % o f t he t ime .
H ow a cc ur a t e d o you belie v e your or g a ni z a t i o n ’ s c r edi t r i s k m o del ( or m o del s ? i s to d a y ?
16 % M ost l y 76 % 95 % o f t he t ime )
83 % S o me w h a t 50 % 75 % o f t he t ime )
1 % N ot a t a ll ( le ss t h a n h a lf t he t ime )
0 % C o m p le t el y
A lm ost 90 % o f r e spo nden ts ci t ed l ow / n o c o de a s a n im port a n t fe a tur e o f a uto m a t ed r i s k deci s i o ning syst em s . 86 % o f r e spo nden ts ci t ed l ow / n o c o de U I a s a fe a tur e t he y h a v e or t h a t wou ld be m ost im port a n t w hen s elec t ing a n a uto m a t ed r i s k deci s i o ning syst em a nd 13 % p l a n to in v e st in 2022. 55 % o f r e spo nden ts ci t ed m o del l a ng u a ge a gn ost ic a nd 38 % p l a n to in v e st in 2022.
W hich o f t he f o ll ow ing fe a tur e s d o e s your a uto m a t ed r i s k deci s i o ning syst em c urr en t l y incl u de / w ill be im port a n t in your s elec t i o n ?
86 %
55 %
C urr en t l y h a v e fe a tur e / wou ld be m ost im port a n t
38 %
P l a n to in v e st in 2022
13 %
N o p l a n to in v e st in 2022
7 %
1 %
L ow / n o c o de U I
M o del l a ng u a ge a gn ost ic
R e spo nden t B r e a kd ow n
R egi o n
A P AC 100 %
T i t le
C o m p a n y S i z e
2 10 em p l oy ee s
44 %
11 50 em p l oy ee s
3 %
501 1,000 em p l oy ee s
13 %
32 %
36 %
51 200 em p l oy ee s
19 %
16 %
8 %
201 500 em p l oy ee s
29 %
C S u i t e
VP
D i r ec tor
Ma n a ge r
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