UK organisations set sights on affordability and unstructured data to improve the customer experience

26 June 2017

A large majority of risk leaders (86%) are eyeing high-quality affordability data as an opportunity to improve overall customer experience.

Research from Callcredit Information Group reveals unstructured data (48%), such as social media, socio-economic data (48%) including age, and socio-demographic (42%) data, such as geography, are at the top of the list of data sources that experience leaders are accessing to optimise the customer journey.

The findings, which form part of Callcredit’s New Affordability report, highlight that risk professionals are looking beyond meeting compliance requirements (93%) and treating customers fairly (TCF) commitments (86%) when it comes to maximising the insight available to them and improving customer management.

Steve McNicholas, Managing Director – Credit and Marketing Data, Callcredit Information Group, said: “Lenders are starting to recognise the opportunity in using more informed affordability assessments to enhance the customer experience. However, our research reveals there is more they can do to leverage the technology that exists today to draw on robust customer data without interrupting their journey.”

When it comes to managing customer risk, the key data points that risk professionals are using include:

  • Internal data (marketing and CRM data) (70%)
  • Positive credit data (51%)
  • External data (49%)
  • Transactional data (42%)
  • Socio-economic data (39%)

Steve continued: “It’s also encouraging to see that organisations are exploring increasingly diverse data sources as part of the customer experience and risk management process. But, with so much now available, the challenge is in translating this into useful insights that truly enhance the customer journey and risk management. Combined with regularly evaluating and updating affordability assessment, will help to protect and strengthen relationships with customers in the long term.”

 

Research Methodology 100 UK respondents for managing consumer credit risk, and 100 UK respondents responsible for managing the customer experience completed an interview during July 2016. The research was carried out by London-based research agency Loudhouse.

A large majority of risk leaders (86%) are eyeing high-quality affordability data as an opportunity to improve overall customer experience.

Research from Callcredit Information Group reveals unstructured data (48%), such as social media, socio-economic data (48%) including age, and socio-demographic (42%) data, such as geography, are at the top of the list of data sources that experience leaders are accessing to optimise the customer journey.

The findings, which form part of Callcredit’s New Affordability report, highlight that risk professionals are looking beyond meeting compliance requirements (93%) and treating customers fairly (TCF) commitments (86%) when it comes to maximising the insight available to them and improving customer management.

Steve McNicholas, Managing Director – Credit and Marketing Data, Callcredit Information Group, said: “Lenders are starting to recognise the opportunity in using more informed affordability assessments to enhance the customer experience. However, our research reveals there is more they can do to leverage the technology that exists today to draw on robust customer data without interrupting their journey.”

When it comes to managing customer risk, the key data points that risk professionals are using include:

  • Internal data (marketing and CRM data) (70%)
  • Positive credit data (51%)
  • External data (49%)
  • Transactional data (42%)
  • Socio-economic data (39%)

Steve continued: “It’s also encouraging to see that organisations are exploring increasingly diverse data sources as part of the customer experience and risk management process. But, with so much now available, the challenge is in translating this into useful insights that truly enhance the customer journey and risk management. Combined with regularly evaluating and updating affordability assessment, will help to protect and strengthen relationships with customers in the long term.”

 

Research Methodology 100 UK respondents for managing consumer credit risk, and 100 UK respondents responsible for managing the customer experience completed an interview during July 2016. The research was carried out by London-based research agency Loudhouse.

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