On April 6, TransUnion added companies that make lending decisions to its Strategic Alliance Distribution Partner Programsuch as fintech Provenir and GDS Link.
The new partners expand TU’s existing strategic alliance distribution partner program, including leading providers of collections, lending systems, data analytics and core platforms. The company said adding “decision-making” providers to this list will meet customers’ rapidly changing needs for complex credit decisions.
Aaron Smith, vice president of global platform partnerships at TransUnion, said Provenir is backed by a strong commitment to R&D and ongoing product development, providing the flexibility and scalability that TransUnion customers say they need. to react quickly to changing market conditions.
“Provenir is a valuable long-term business partner,” Smith said. “Now our customers can leverage TransUnion data in more ways because it’s integrated with the Provenir platform.”
AI for better credit
Provenir launched Provenir AI last month to provide, you guessed it, AI-powered credit decisions to customers.
With data from Transunion, Kathy looks, EVP of Provenir North America, said they can make smarter decisions that lead to deeper insights and automatic optimization. The Provenir platform can eliminate development costs and allow client organizations to see ROI in as little as 60 days, Stares said.
“We are excited to expand our relationship with TransUnion and help customers of all sizes and complexities benefit from our AI-powered platform,” Stares said. “While organizations can understand the transformative power of AI-based risk decision-making, they often struggle to mobilize the resources needed to develop, deploy, and sustain AI initiatives.”
The expansion was driven by TransUnion’s extensive research into how best to meet long-term decision-making needs within the financial services industry. More on that below
Leverage TransUnion data
“This announcement will ensure financial institutions large and small have fast access to world-class data and analytics solutions,” Smith said. “When selecting program partners, we engaged in a rigorous assessment that included 130 categories and 20 sub-categories. Based on their assessment and the current and future needs of our clients, we have partnered with industry leading BI platforms such as GDS Link, Provenir and others.
SDM link is a credit risk manager, providing bespoke software solutions and analytical and advisory services.
Paul Greenwood, CEO of GDS Link, said that together business users could use TransUnion data as they build, test and deploy risk strategies via GDS Link in real time without needing to rely on computing resources.
“As a global leader in credit risk management, we are thrilled to join TransUnion’s Strategic Decision Alliance channel partner program,” said Greenwood. “Our customer-centric decision-making automation platform, Modellica, combined with TransUnion’s world-class data and analytics, delivers a better experience for lenders and borrowers.”
The credit study
The study, “Empowering Credit Inclusion: A Deeper Perspective on Credit Underserved and Unserved Consumers,” released April 7, found that more than 45 million consumers are considered unserved or underserved in the United States.
According to the study, one in four consumers who started with underserved credit migrated to become active in credit within a two-year window before the pandemic. At the height of the pandemic, the same group dwindled to around 22% of all consumers.
In addition to the United States, the study observed consumer credit behavior in Canada, Colombia, Hong Kong, India, and South Africa to better understand the market size of these unserved consumer segments. and underserved.
“Our study indicates that hundreds of millions of consumers around the world are unserved or underserved by credit,” Charlie Wise, Senior Vice President and Global Head of Research and advice, said. “These poor credit consumers are often unable to access financial products and services because they have little or no credit history.
Unserved and underserved
The study explored the characteristics and behaviors of unserved and underserved credit consumers and their general feelings about credit, with insight into consumer credit journeys. Unserved consumers are defined as those who have never had a traditional credit product open, such as a credit card, personal loan or auto loan, reported in TransUnion’s consumer credit database.
The underserved population has minimal credit participation, is limited to one type of credit product and no more than two such open accounts, and has been active in the credit market for at least two years.
“This study has provided insight into how many people are truly underserved or unserved from a credit perspective,” Smith said. “While also determining pathways for them to get more credit opportunities.”
TransUnion experts included two cohorts of consumers, each over two years – the first during the pre-pandemic period starting from March 2018 to March 2020, and the second starting in June 2019. They studied during the pandemic period from June 2021 to determine if there were any pandemic-related changes in consumer credit migration patterns.
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