Oz Uzuner, VP of Growth at LendUp, recently spoke at Lend360. His panel -- Positive Signals for a Positive Customer Experience -- also featured execs from Funding Circle, Innovative Decision Analytics and Whitepages Pro. Here’s what he had to say about it.
Regulatory changes were the most discussed issue, with some talking about how the uncertainty in this area is preventing some lenders from investing further in the short-term credit space.
For those of us working on the subprime end of the credit spectrum, we agreed that borrowers with subprime credit scores are most challenged by income volatility, lack of savings, stagnant household incomes and limited to access credit. We also discussed research that shows that borrowers with subprime credit scores are more motivated by building their credit vs APR… and that there is much higher volatility in repayment rates in prime compared to subprime. Lastly, although in its early stages, there is some appetite from major CRAs to get short-term loan payment data from lenders and alternative credit bureaus, and in turn, help with expanding consumers’ credit profiles.
Overall, a major takeaway was that personalization/customization is key for acquisitions/growth regardless of the channel used. This includes messaging, customer experience (like application funnel), underwriting and servicing efforts.
What are we working on here at LendUp that attendees were interested in learning about?
How we do our modeling and underwriting, especially how we use different data sources and leverage data sources like Plaid for second-chance underwriting.
I look forward to following up with some of the data providers I met and seeing if there are additional ways we can improve our underwriting and expand credit access even further. I also came away with some additional ideas around customized customer experiences, but I’ll be keeping them under wraps for now -- stay tuned!