Alloy, the identity risk management company, is expanding its credit underwriting capabilities to support banks, fintechs, and other builders of financial products in managing their holistic credit risk. In a challenging macro-environment,
Alloy enables lenders to “make smarter credit decisions, capture default risk, and increase revenue by identifying upsell and cross-sell opportunities.”
Alloy also automates credit line management and product remarketing, “helping lenders maintain appropriate credit limits and proactively extend new product offers to customers.”
Lenders rely on Alloy’s credit underwriting capabilities “to offer credit products to more people with less risk.”
Alloy allows lenders to “automate their credit decisions using identity data gathered during onboarding, credit bureau data, and alternative underwriting data.” Lenders can make credit decisions using custom models, building anything from basic workflows “to complex matrix models right within Alloy.”
Alloy’s updated credit offering “builds upon these existing capabilities to offer a comprehensive and proactive approach to credit management beyond origination, enabling banks and fintechs to monitor for credit risk throughout the customer lifecycle.”
New features include:
- Automated, scheduled checks using the richest set of credit signals to monitor the ongoing financial health of borrowers: Lenders can incorporate fresh data pulls into their decisioning from a wide range of third party data sources: including credit bureau data, alternative underwriting data, and their own proprietary data. This comprehensive approach enables lenders to build a more complete picture of a borrower’s creditworthiness and potential risks and carry out more data-driven decisions.
- Real-time alerts sent to lenders to notify them about changes in a borrower’s risk (e.g. if a borrower declares bankruptcy): Lenders can then take proactive measures to prevent the accumulation of high-risk loans.
- Automated line management: Lenders can maintain appropriate credit limits and terms through continuous monitoring to determine if customers qualify for a credit line change based on behavior and automatically conduct line adjustments.
- Automated credit remarketing process: Lenders can monitor positive customer behaviors like timely repayments and salary increases and can offer good customers new products, ultimately increasing their company revenue.
Alloy’s product investment in the credit space “comes as U.S. consumer credit card debt has topped $1 trillion for the first time in history.”
As many borrowers face increased financial strain impacting their ability to repay debts, lenders may “be forced to make difficult decisions about the creditworthiness of their applicants.”
At the same time, as revolving credit usage “grows and consumers demand personalized, seamless experiences from their financial institutions, lenders are challenged with remaining top of wallet and staying ahead of competitors.”