By Noah Fitzgerald, CPP
Lenders are missing significant opportunities: There are good borrowers that are declined and there are approved applicants that never originate. Considerable time and money is spent on finding and buying leads that are not converted. Declining good business results in lost revenue and loss of a good client. Approximately 5 – 15% of all approvals never convert to an origination and 30-60% of all applicants are declined. These problems exist due to the lack of data available on the borrower. Traditional data on the borrower places them into a decline or a higher risk profile. Lenders’ scoring and risk models put the borrower outside of approval guidelines. So, how can a lender convert more of the approved apps and safely approve more of the declines?
Miami, FL | April 16-19, 1028
The Community Financial Services Association of America (CFSA) is the leading national association representing non-bank lenders that offer small-dollar credit products and other financial services.