BANKING is at a crucial moment, where financial institutions seek growth and satisfy the needs of consumers, while efficiently managing risk. It is there, where the updating of the technology of making credit resolutions becomes essential. Provenir, a world leader in risk decision software for the financial sector, addresses the myths and realities associated with this upgrade and adoption of innovative solutions that help the financial industry stay ahead.
For Jose Luis Vargas, executive vice president of Provenir for Latin America, “it is important to dispel the myths and understand the realities behind the new era of decision-making. The financial sector is constantly evolving and competition is increasingly intense. Therefore, it is essential to be aware of the scope and benefits of cutting-edge technology in risk modeling and the creation of innovative credit products.”
According to IDC, by 2022 more than 100,000 exabytes of data will be generated. However, 74% of decision makers surveyed by Provenir and Pulse said they have problems with their organization’s credit risk strategy because they do not have easy access to data.
Today, it is possible to find solutions that run in parallel with existing software and integrate systems more efficiently. By modernizing, traditional financial institutions can improve decision-making outcomes, seize growth opportunities, and meet customer needs and expectations.
One of the wishful thinking is believing that traditional credit data is sufficient. This data is limited and does not provide a complete picture of a customer’s creditworthiness. Alternative data sources need to be used in combination with traditional inputs to get a more accurate, real-time view of a customer’s ability and willingness to make payments.