Risk, product and portfolio managers alike are always on the quest for insights as to what in the marketplace drove their performance trends in a specific direction. Benchmarking against industry movements is a critical exercise every lender should perform to identify gaps and opportunities in strategy. However, getting a clear picture on overall industry trends is rarely easy or straightforward. And it's even more challenging to draw a storyline from those trends, and then relate that story to business strategy. In this session, we’ll provide a general outlook and commentary on the Canadian economic situation, our perspective on key trends and critical dynamics in the retail and commercial lending marketplaces.

Are consumers who actively monitor their own credit files more attractive to lenders? Consumers are increasingly aware of the importance of strong credit scores in gaining access to new credit, and to the best pricing of that credit. Consumers are now taking a more active role in monitoring and understanding their own credit health. But is self-monitoring indicative of any improved performance? Are consumers who monitor their credit more active in opening and using new credit products? In this session, we will share the findings of a study on consumers who self-monitor their credit, both actively and passively, and present comparisons to consumers who do not self-monitor in terms of loan performance, credit risk improvement, and new product origination and usage.

We will provide a high-level strategy and vision for the evolution of our CreditView Dashboard^SM.

Many consumers experience derogatory credit events, but for some consumers this is a one-time event compared to the norm. After 7 years, derogatory information falls off the credit file which invariably impacts consumer credit scores. In this session, we’ll look at how this shift in credit score impacts a consumer’s ability to obtain new credit. We’ll also compare how consumers that had a derogatory event perform on new loans compared to those that did not experience a derogatory event. In addition, we’ll evaluate how this performance varies by score shifts and other aspects of the consumer credit profile. Finally, we’ll propose a new model that identifies future prime consumers – those consumers that aren’t yet prime, but are predicted to migrate over time to allow lenders to build specific strategies to maintain and grow this base. Through this study, we’ll look to understand how lenders might capitalize on potential opportunity for those that have derogatory information fall off their file and extend credit with confidence to this group of consumers.

There has been an evolution in the composition of consumer fraud over the last few years, with a decline in the traditionally dominant account takeover fraud and a significant increase of synthetic identity fraud. This session focuses on the challenges posed by synthetic fraud as a low-volume but high-impact source of losses at financial institutions. We’ll start with a foundational look at synthetic fraud, focusing not only on its defining characteristics but also the mechanisms that are typically used to create “successful” synthetic identities. We’ll also provide an estimate of the size of the problem and identify industry sectors that appear to be at higher risk. We’ll explore effective synthetic fraud prevention mechanisms and present a framework for the optimization of fraud-based loss mitigation strategies across the credit lifecycle, from front-end acquisitions to back-end collections management. We’ll close the discussion with a look at the new wave of tools and technical improvements that are aimed at crowding out synthetic fraudsters while enabling improvements in the legitimate customer experience.

We will provide a high-level strategy and vision for the evolution of our fraud and identity management platform and tools.

With a shift in the balance of power in the lending relationship to the consumer, the dynamics of loyalty have also changed. Technology has opened up choice in dramatic ways, and with that consumer choice comes a certain fragility to loyalty. In this session, we’ll explore perspectives on loyalty, introducing the concepts of loyalty driven by convenience versus allegiance versus compensation. These insights can help lenders understand the balance between encouraging existing consumer loyalty across multiple products, as well as potential share shift or defensive strategies in a competitive markets.