If we want to understand the future trajectories of an industry, we have to look at the expectation gaps that are created by the established and emerging value models.
Invited to participate in the Creditinfo Global Forum 2017 in Marrakech and discuss the future of financial services with industry leaders, we used the occasion to present our report on 2020 global lending industry trends.
We spoke about how the lending industry has become increasingly active, even to the point where it is becoming difficult to track all the changes and developments. By looking at consumer-facing value propositions, new products and new market entries, we identified main industry patterns and envisioned possible future scenarios.
Emerging value models in lending
01 Added value lending
The market has come up with a variety of different approaches to present lending as a service - integrating tracking and monitoring tools, adding free credit-scoring, providing guidance content, and so on. Added-value lending is a convergence trend, which means that we stop regarding lending as a product and start thinking of it as an ongoing service and a tool.
02 Full picture scoring
Traditional credit score has been devised to serve a client that has an existing history of financial product usage – and this by definition excludes a number of potential new clients. The question that the industry started asking is simple – what new types of data can we use to assess the credit-worthiness of an individual? If previously it has been about getting access to comprehensive financial data, now the potential field of solutions is becoming wider.
The most basic yet powerful decision heuristic that both B2C and B2B clients are using is a simple question – is it for people like me? What we want to know is whether the offering we are choosing is built around our needs and whether people like us are actually using it and finding it valuable. And some companies are starting to strategically approach a question like this. Instead of building lending services that are for everyone, more and more lending players are choosing a more focused approach.VIEW full REPORT