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Business Intelligence: Making Your Consumer Lending Portfolio Smarter

March 07, 2016

The consumer lending business has been hit particularly hard by recent market changes. In response, financial institutions are facing this challenge by refocusing their attention toward developing data-based key strategies that improve performance and overall profitability while minimizing additional risk.

Using business intelligence (BI) to monitor and assess end-to-end profitability of products, channels and operating units is fundamental to management’s ability to direct investment and better manage the economics and risks of the portfolio. While many institutions use general ledger reporting and financial analysis to support critical aspects of managing the business, the insights that they provide can be inaccurate due to “bad data” or, as is more often the case, outdated or underpowered business intelligence tools and capabilities. However, with the right management focus, investment and commitment, significant improvement can be made to the quality and timeliness of business and financial information.

Many consumer lending organizations already have made significant strides toward improving their analytical capabilities. The result? They’re now in a much better position to understand and respond to today’s – and tomorrow’s – changing consumer market and competitive pressures.

Consumer lenders who implement a robust business intelligence solution can experience …

  • Higher quality decision-making supported by fact-based financial analysis
  • Faster decision-making with the ability to respond more quickly to the market, operational and competitive changes
  • The ability to direct investment to improve return on equity (ROE) based on current business performance
  • Improved operational and strategic planning and execution
  • The ability to perform business and financial forecasts to assess the impact of changes in the market environment, the regulatory environment and internal operations
  • The value of a single source of information that keeps business decisions consistent across departments and throughout the whole organization

Most lending executives understand the growing importance of sound business intelligence tools, but can be intimidated by challenges in planning, funding, implementation and integration. However, affordable and agile technology is now within reach for nearly any financial institution, including solutions that integrate with origination and processing systems to provide important reporting and analysis needed by every lending executive.

Download our Top Ten Reasons You Need a Business Intelligence Solution for Your Lending Process fact sheet for more insight about why BI is a “must have” for every forward-facing lending business that wants to craft a tighter, more profitable and more consumer-centric portfolio.


Marianne Franks
Lending Solutions Marketing Manager, D+H


Marianne Franks is a lending solutions marketing manager for the consumer lending solutions at D+H. She has been part of the D+H marketing team since 2008 and has gained extensive insight into the consumer lending industry. Prior to joining D+H, Marianne worked for over 25 years in consumer and commercial lending at financial institutions in Oregon and California.

Marianne Franks