How Enterprise Connectivity Can Help Underbanked Consumers

May 16, 2012 by  Filed under: Credit 

Enterprise solutions that connect channels and lines of business can be used to enhance the interactions underbanked consumers have with their bank, improve customer satisfaction, increase customer retention, and expand wallet share for the bank. Underbanked consumers are those consumers with no or limited traditional credit history. The two main solutions that can help provide financial services to the underbanked are decisioning and cross-sell. These solutions work together to provide positive and effective customer interactions for underbanked consumers.

Enterprise decisioning is used to connect all channels and lines of business through a layer that falls between the separate channel and line of business. Each incoming application is converted to a usable format regardless of what channel was used to submit the application, and the application is routed to the correct line of business through the enterprise layer. Each line of business can maintain their own decisioning system to analyze the application or they can use one decision engine that is configured to decision different products. After decisioning is complete, the application is returned back to the enterprise decision layer, and then back to the channel from whence the application came.

What does this have to do with underbanked consumers? Because all lines of business are connected through the enterprise decisioning layer, each line of business, rather than being siloed and autonomous, is connected to every other division of products. Banks can gather information through the enterprise layer from these other lines of business to accurately determine how responsible a consumer is. Many underbanked consumers have a simple debit account, checking account, savings account, or even a low-limit credit card. While this information often will not appear on a traditional credit history, this valuable internal information can be used to more accurately judge the past actions of consumers.

Enterprise cross-sell can be used to help underbanked consumers because all lines of business are connected. When a consumer submits an application for a financial product an enterprise cross-sell solution has the ability to decision that application for additional products that the consumer would be likely to accept. A common example of this would be a consumer applying for a debit or checking account who is also decisioned for a credit card. They did not apply for a credit card, but through enterprise cross-sell, they were qualified for the product and are likely to accept the offer. This both increases wallet share for the bank and increases consumer satisfaction because consumers are offered products for which they qualify and are likely to accept. Specifically for underbanked consumers, this serves as a way to help them acquire financial products to increase the amount of traditional credit history they have.

Overall, enterprise solutions can benefit underbanked consumers in a variety of ways. Through enterprise decisioning, consumers can be more accurately analyzed for credit worthiness because of internal data. Enterprise cross-sell can be used to encourage these consumers to hold more products and gain more traditional credit history. This will help them in the future if they want to open more complex accounts, such as an auto loan or home mortgage. Enterprise solutions are used to gather data, make accurate decisions, and enhance the overall customer experience.

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