Insights into Effectiveness through Data Science
Insights: White Papers
Credit Risk Quarterly – Q3 2023
Check out our latest Credit Risk insights from Q3 2023! This quarter we discuss headwinds and tailwinds affecting the US consumer credit risk industry across all different asset classes, including our thoughts on rising delinquencies with increased interest rate environments, and our expectations with the resumption of student loan payments.
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Credit Risk Quarterly- Q2 2023
Check out our latest Credit Risk insights from Q2 2023. This quarter we focus on the headwinds and tailwinds affecting the US consumer credit risk as a whole, as well as discuss recent trends across Credit Cards, Personal Loans/Mortgages, Auto Loans, and Student Loans.
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Recoveries Strategy Refresh
During the pandemic, consumer stimulus led to lower credit losses and therefore less of a strategic focus on Recoveries. As the U.S. enters a more challenging macro-economic environment characterized by inflation, interest rate increases, and resulting pressure on consumers, we are seeing losses increase back to pre-pandemic levels and even worse for some segments. Now is a perfect time to revisit Recoveries and refresh your strategic and operational approach. This paper will explore how the industry has evolved since the last economic downturn, provide an updated view of winning strategies, and highlight what is at stake for your organization.
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The Small Business Data Revolution: Reshaping Lending Decisions
Over the past decade, the Small Business (SMB) lending field has seen an explosion of innovation, with groundbreaking advancements in data sources, API technology, machine learning, digital onboarding, and instant decisioning. Initially driven by larger banks, these innovations have now been embraced and implemented at scale by fintech companies. In this article, we want to take you on a journey of how the SMB lending category has transformed over time, explore the emerging ecosystem of new technologies and data sources, and discuss how executives at banks, lending institutions, and payments companies can rapidly improve upon their current SMB offerings.
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Credit Risk Quarterly- Q1 2023 in Review
Check out our latest Credit Risk insights from Q1 2023, focusing on trends across various asset classes, noticeable decreases in risk levels among subprime and low-income consumers, and continued risk score warping.
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Building a Well-Managed Collections Function
As delinquencies and Collections efforts increase across the industry, our latest white paper provides a roadmap for where the difficulties and pain points lie. We start with a framework for the root causes of complexity within Collections, provide a variety of examples, and suggest a set of important first steps to make Collections a more well- managed part of the lending lifecycle.
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A Comparison of Modeling Preprocessing Techniques
Our latest white paper compares the performance of various data processing methods in terms of predictive performance for structured data. This paper also seeks to identify and recommend preprocessing methodologies for tree-based binary classification models, with a focus on eXtreme Gradient Boost-ing (XGBoost) models.
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Credit Trends in Brazil
2nd Order Solutions has seen a sharp rise in new credit acquisitions in Brazil amid a high interest rate environment, which has led to debt-to-income levels that are at an all-time high. This whitepaper explores the consequences of this rapid increase in debt-to-income, uncovering a concerning risk outlook ahead. In addition to deep diving into the delinquency trends, this report uncovers specific populations that have been hit the hardest and suggests what lenders should do to help mitigate the risk.
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Credit Risk Quarterly – Q4 2022 in Review
Check out our latest Credit Risk insights from Q4 2022, focusing on trends across various asset classes, inflation’s impacts on lending, and risk score warping.
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Credit Risk Quarterly – Q3 2022 in Review
This paper reviews the overall state of consumer credit, focusing on credit cards, personal loans, auto loans, student loans, and mortgages. In addition, we examine the impacts of inflation on lending, the current macroeconomic outlook, and continued observations of risk score warping.
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