Effectively tracking and analyzing a client population’s credit risk

Portfolio Management Software

Lenders nationwide have been challenged by market volatility, brought on by high levels of consumer debt and loan delinquencies. While a number of recent reports show economic growth is occurring – albeit at a slow pace – the market’s current climate impresses how important it is for financial executives to make nuanced decisions when it comes to the growth and management of their client portfolio.

Portfolio management software that offers automated decisioning capabilities is an ideal tool for these professionals, offering the ability to find new opportunity in an existing clientbase and identify the best potential moves when reviewing new credit applicants. Adopting these capabilities offers executives breathing room in difficult economic times, though when fortunes turn and the climate improves, these abilities can be put to use in a proactive risk assessment initiative.

If a new report from the credit bureau TransUnion serves as a peek into the future of the country’s credit environment, then lenders may soon have opportunities to leverage risk management software in this way. TransUnion reports its Credit Risk Index declined 1.57 percent in the second quarter of 2012, a reversal of trends from the previous two quarters, when risk climbed.

The decrease reflected improved consumer demand for new credit, as Americans turned to lenders to finance more expensive purchases, according to TransUnion executive Charlie Wise. In addition, consumers worked to minimize existing debt, with the bureau reporting declining delinquency rates on a variety of loan types.

Though TransUnion’s report demonstrates merely one quarter’s worth of improvement, it may be a step in the right direction for lenders. Those who arm their business with automated decisioning capabilities may be in a better position than most to maximize these opportunities in an effort to grow portfolios.

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From loan originations and decisioning, to customer management and beyond, GDS Link helps thousands of clients manage risk while driving growth.