TECH BUYER Nov 2020 - IDC Perspective - Doc # AP46529120
Lending Excellence Is Composed of Many Moving Parts
This IDC study describes the pursuit of lending excellence by Asia/Pacific banks and lending institutions through broadening and deepening their capabilities throughout various points of the lending life cycle. Lending excellence ensures speed of critical business processes, accuracy and precision of the credit decision, and timeliness and accuracy of decisions across different parts of the lending business.
"The ideal and all-encompassing mindset in lending excellence is risk-based decision analytics. The application of risk models to create risk scores for loan application or loan underwriting is already well-established in banks. This experience should be extended for risk-based scores in initiation, collections, and recovery as well as to many other crucial decisions in lending," says Michael Araneta, associate VP for IDC Financial Insights, Asia/Pacific.
"In the era when new and alternative data can hone credit models, it might be in data and data analytics by which the participation of banks in lending will be most welcome. Some, however, will grow big and well beyond the start-up and tech worlds. Financial technology (fintech) banks will emerge and will compete more directly with traditional banks," adds Darshiniy Selvaratnam, senior market analyst, IDC Financial Insights Asia/Pacific.
Analytic applications, Cognitive/artificial intelligence, Disaster recovery, Enterprise mobility, Financial resource management, Governance, risk and compliance infrastructure, Integration and process automation middleware, Robotics, Technology buyer, eCommerce