New research from TransUnion found that two in three lenders feel that data and analytics are evolving faster than their own internal capabilities. Findings from the research were unveiled at FinovateFall 2016, where TransUnion was selected to feature its Prama℠ suite of solutions.
TransUnion, which was also honored at FinovateFall 2016 with a No. 35 ranking in the IDC Financial Insights FinTech Top 100, surveyed 309 banks, credit unions and consumer finance companies to learn more about lenders’ use of data and analytics.
The survey found that 61% of lenders feel that the vast amounts of data now available to them are overwhelming, and more than half (54%) say it is difficult to discover useful insights when there is so much data. Yet 70% of lenders want direct, immediate, self-service visibility into their analytics.
“To thrive in a dynamic business environment, lenders must be able to harness the power of analytics — not be overwhelmed by it,” said Steve Chaouki, executive vice president and head of TransUnion’s financial services business unit. “Organizations need fast and easy access to data and analytics to help them better understand industry trends and performance. To date, the ability to actually source, interpret and use data in real time continues to be a challenge. We’re excited to be at FinovateFall 2016 to demonstrate our groundbreaking portfolio of data and analytics capabilities that empowers customers to easily discover, build and act on insights in minutes vs. months.”
The need for real-time data is real, according to TransUnion’s research. Nearly three in four respondents (73%) report that their analytics capabilities or lack thereof, affects their ability to compete in the marketplace. Virtually all (92%) respondents agree there are new or hidden opportunities in today’s market — but struggle with uncovering opportunities in a timely fashion due to massive data volume and limited resources.
“Delving into vast depths of data can present an impossible task when decision makers are either overwhelmed with too much information or lack resources to leverage data appropriately,” said Paul Siegfried, senior vice president and TransUnion’s credit card line of business leader. “This opens the door to a new class of analytics services, with features that can pull real and timely market intelligence by region or by type of borrower, and can be used for a wide variety of purposes, such as adapting risk and developing competitive product strategies.”
Prama Transforms Marketplace
To meet the changing demands of the lending market, TransUnion recently launched Prama, a groundbreaking suite of solutions changing how companies explore data and act on insights. Prama puts the power of broad, deep data and the reliability of superior analytics at the customer’s fingertips–giving them the information they need to make better decisions at the speed their business requires.
The Prama suite of solutions currently consists of Prama Insights, which includes two modules — Market Insights and Vintage Analysis. The Market Insights module provides quarterly views on key lending metrics at a state, regional and national level.
The Vintage Analysis module allows users to view seven years of their own performance data spanning the life of each loan (i.e. delinquency, charge-offs, bankruptcy). Leveraging a full depersonalized national credit file, users can easily compare or benchmark vintage performance against their peer groups and the industry as a whole. The next step in the Prama journey — Prama Studio — is planned to be generally available later this year. Its first module, Attribute Manager, will include capabilities for custom attribute development through a convenient web-based portal.
“Our research found half of lenders say their organizations are driven mostly by intuition and the experience of managers rather than by analytics. Yet, 80% of lenders believe that improving their analytics capabilities would make their organizations more competitive,” said Chaouki. “We believe our Prama suite of solutions addresses these needs, and the industry is beginning to recognize the importance of having access to analytic services that facilitate faster decisions and strategy adjustments.”