The once-opaque world of lending is experiencing a transformation, with new participants, new risk models, new propositions and new expectations ensuring that tomorrows market will be more competitive and more dynamic than ever before. New participants: Lending has been a central focus for Fintech investment over the last decade. As one of the few sustained profit centres for banks, it’s an obvious target for challengers. New perceptions: For years banks have honed and optimised their internal risk scorecards – a sophisticated world in which they have pursued outperformance by better understanding pricing and performance trade-offs. But for years traditional players have relied on legacy data sets and toolkits. In a world of democratised data – both in banking and beyond – the rules of risk prediction are being re-written. New propositions: Bank lending services for consumers and businesses have changed little in the last forty years – reflecting the organisational structure & product set of lenders rather than the complex, flexible needs of borrowers. More intelligent, relevant hybrid services are now arriving – and solving problems in a way that static legacy products can’t. New expectations: Lenders were once powerful dictators, to whom you ‘applied’ to be a customer. Modern customers, both businesses and individuals are challenging the power dynamic and demanding digital provisioning, real-time decisioning and that banks base their judgements on intelligent, rich data – not supposition & black box metrics.
Phil is a Partner at Hunch, the London based strategic innovation practice where he advises blue chip clients on market evolution, growth strategy and next-generation propositions. Phil's experience spans start-up and corporate innovation. He has launched and run a diverse range of... Read More →
