Navigating a new era of credit risk decisioning

New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Paving the way for a progressive and modern approach to lending

Paving the way for a progressive and modern approach to lending

Read full article

Mathew Demetriou

By Mathew Demetriou 11/04/2021

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And serving those struggling financially to access affordable credit quickly

 

The Centre for Social Impact 2018 report Financial Resilience in Australia found that while between 2016 to 2018 financial resilience in Australia had increased significantly and returned to levels similar to 2015, there were still 2.1 million Australian adults experiencing financial stress. One in six Australians were finding it tough to meet the necessary costs of living and just 1 in 2 were prepared for a rainy day with three or more months’ worth of savings to provide a buffer for unexpected costs.

 

Fast forward to 2020 and the Covid-19 pandemic (and subsequent economic crisis), had accelerated an already over-exposed society, plunging more into debt (and high risk applicant status). Research by the Melbourne Institute conducted last year revealed Australians vulnerable to financial stress was still over 50%. Even by October 2020 43% of Australian consumers were finding bill payments difficult and 2 in 10 were cutting back on discretionary spending, as found in Experian’s third Global Insights Report. In 2021 consumers face uneven roads to recovery with some ready to spend again and others still mired in pandemic-related financial stress.

 

For many of these individuals, access to mainstream, affordable finance may no longer be an option. Classed as high risk applicants, more traditional loans are either not available to them or are not suited to their immediate needs. However, their need for credit is even more urgent and they are actively seeking out funds to support them in the short term.

 

One of the biggest challenges faces by the market is a lack of speed and insight. Processes can be slow and cumbersome, with journeys typically performed manually, taking up to weeks to review and complete. Add to this a more complex and volatile environment, where the assessment of affordability is even more challenging than it was and the need for pace in a digitally accelerated environment is vital. This is continuing to hinder lenders’ ability to support people, and therefore impacting their growth.

 

This is where technology can help. A cloud-based lending platform, like Experian PowerCurve Customer Acquisition, can provide streamlined, cost effective, digitised and more efficient means of making credit decisions. Traditionally this type of technology would require high levels of investment, putting it beyond the economic reach of many lenders, however it can all be accessed without the burden of investment to build or fund.

 

By partnering with Experian, lenders can benefit from its breadth and quality of data, and ability to orchestrate the entire decision journey from start to finish. And with Experian’s continued investment in data, analytics and technologies, alongside its cloud hosted originations solution can give lenders an always advancing approach to decisions, enabling them to maximise opportunities now, but be adaptable and agile for future change and needs too, and all without the need to embark on extensive updates or change programs.

 

Australian fintech and personal loan provider MoneyPlace partnered with Experian to power its credit decisioning with Experian PowerCurve Customer Acquisition.Take a look at the video below to hear more about their early adoption of the solution and some of the ways it has helped them.

 

 

A digital decisioning platform, integrated with eligibility, affordability and identity checks, helps lenders move away from slow, manual processes and make faster, more accurate and fairer decisions. This also has the potential to help Australians in financial stress, by not only offering more competitive and appropriate rates, but protecting and supporting consumers from possibly harmful alternatives. As we move through the current volatile environment, it’s partnerships between Experian and lenders such as MoneyPlace, that will enable more progressive and modern approaches to tackle the uncertainties that are yet to come.    

 

If we can assist your business in navigating a new era of credit risk decisioning, please get in touch with us using the form below.

 

By Mathew Demetriou, General Manager Decision Analytics, Experian A/NZ

 

 

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