Consumer Lending eBookv2 (1)

ADVENTURES IN CONSUMER LENDING:

The Quest of the Five Lending Jewels

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Table of Contents: Mission Brief.............................................. 4 Auto Amethyst.......................................... 6 Mortgage Malachite.................................. 8 Retail Ruby................................................ 10 BNPL Bismuth............................................ 12

Notice: You are an adventurous consumer lender on a quest to collect the five legendary lending jewels: Auto, Mortgage, Retail, BNPL, and Credit Card.

It is said that each jewel contains a secret to consumer lending success, and therefore they are highly sought-after. To successfully retrieve them all, you must complete a mission brief and travel to the five desert islands that, according to legend, are home to the treasure.

Credit Card Quartz.................................... 14

Will you heed the call to…

Using the Jewels....................................... 17

Choose Your Own Consumer Lending Adventure?

Examine the Chests.................................. 19

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As a brave and passionate lender ready to explore the wide world of consumer lending, you’re eager to be the best at what you do, and legend has it that the secret to success lies among the five lending jewels. Today, you finally have the opportunity to seek them out as you’ve come into possession of treasure map and a secret scroll detailing the steps you must take to conquer consumer lending.

The Quest of the Five Lending Jewels The world of consumer lending is expansive and at times dangerous, unless you have the right tools. And to find the right tools, you must know where to look. That is the pursuit of this quest: discover the right tools to excel in any area of consumer lending, no matter the challenges that lay ahead.

The Treasure While there are many treasures in the realm of consumer lending, your quest is to find the five lending jewels:

Auto Amethyst

Mortgage Malachite

Retail Ruby

Before you set out on your journey, however, you must understand the the realm into which you are entering:

BNPL Bismuth

The Lending Landscape $110 billion

253.8 million

size of global consumer credit

US consumers with a loan balance

10% MEA’s YOY growth of total loan value

Credit Card Quartz

Each lending jewel rests inside a chest, containing both challenges and solutions - this knowledge allows the beholder to unlock the true power of that particular lending opportunity. Bolstered by the strength of all five jewels, at the end of this quest you will have the ability to:

Say “yes” to more applications

Reduce your risk of default and fraud

Launch new products faster

What will you do next on your consumer lending quest? (click below to choose your path)

Over 80% of LatAm consumers would consider financing plans for purchases

557.7 million credit card holders in APAC (only 13%)

60% increase

Search for the Auto Amethyst

of people in UK reliant on high cost short term credit

Give up and go home

Skip to the end of the journey

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Auto Amethyst

Opportunities

You easily navigate to the first island, emboldened by your passion for lending and swift sailing skills.

• Real-time approvals

Congratulations! You have found the chest of the Auto Amethyst and are one step closer to collecting all five legendary lending jewels. Before you can unleash the jewel’s secret to success, you must understand both the challenges and opportunities auto lending can offer.

Challenges

No more sifting through piles of paper - technology that enables instant approvals will help you capture customers swiftly and move more cars off the lot. Offer digital applications for both speed and convenience.

• Prolonged application processing time

• Smarter decisions and lower risk

Some lenders still process auto loan applications manually, taking hours to manage masses of paperwork. Aside from rising shopper frustration, the more time you spend on processing a loan for a single customer means the less time you have to reach new ones and help your business grow.

Data-driven, flexible decisioning takes the guesswork out of approvals. Lower your risk and increase your accuracy with every decision. Respond to economic uncertainty and market variations with ease and without compromising your risk appetite.

• Inconsistent decision accuracy

• Loyal customers

If you’re working with an inflexible loan origination system (LOS) or have to go through manual processes hundreds of times each day, you cannot guarantee the utmost accuracy of your decisions. If you have to change models based on market shifts, it becomes even harder to make smart decisions for each and every application.

Bypass the one-size-fits-all competition with personalized offers powered by AI. Customers will receive instant approvals with the terms that fit their unique needs, building loyalty and turning them into repeat customers for years to come.

• Poor customer experience Auto shoppers often spend more than three hours at a dealership when purchasing a vehicle, but their satisfaction begins to fall in half the amount of time. With trust in car salespeople low to begin with, customers expect fast, personalized offers, and if they can’t get it from you, they’ll find it elsewhere.

Now the choice is yours… what will you do next? (click below to choose your path)

Continue the journey and seek out the Mortgage Malachite Examine the Auto Amethyst chest in more depth Go back to the beginning

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Mortgage Malachite

Opportunities

You revisit your treasure map with renewed passion and set out to reach the next stop on your journey.

• Speedy, simplified loan cycles

Bravo! You have found the chest of the Mortgage Malachite and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities mortgage loans can offer.

Reduce inefficiencies with a unified solution that combines data, decisioning, and AI. Connect processes and streamline each step for faster approvals, no matter the complexity.

Challenges • Slow and inefficient processes Mortgage application processes take days and even months, rather than hours, due to their highly complex nature, from pre-approval to receiving the actual loan. With so many moving parts, inefficiencies build up, slowing down the loan cycle even further.

• Unpredictable economic conditions For mortgage lenders, an unpredictable economy means your customers’ ability to make their payments on time also becomes unpredictable. If you don’t have the right tools in place, it can be a struggle to proactively manage customer accounts before default.

• Limited growth opportunities No matter how bold of a lending adventurer you may be, you ideally want to keep your risk as low as possible while reaching the highest number of potential customers. By determining creditworthiness with data from credit bureaus alone, you may never connect with qualified customers that have thin credit files, giving up a low-risk channel for growth.

• Support your customers in any economy When it comes to supporting at-risk customers, the most successful lenders are proactive, not reactive. Monitor their account health from the point of onboarding to intervene before the first missed payment.

• Reach new customers with alternative data With alternative data like rent and utility payments, employment and salary history, or even social media activity, you can determine the creditworthiness of credit invisibles or applicants with thin credit files. Use both traditional and alternative data to foster financial inclusion and accelerate business growth.

Embrace these opportunities with the power of the Mortgage Malachite and you will become a legendary mortgage lender.

What’s next? (click below to choose your path)

Continue the journey and seek out the Mortgage Malachite Examine the Mortgage Malachite chest in more depth Go back to the beginning

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Retail Ruby With two jewels down, you’re eager to discover the rest. You see the route to the location of the Retail Ruby takes you through uncharted waters - waters that some say contain a fierce sea beast. You, however, are unconcerned. You’ve taken on far worse than a fierce sea beast: your competition.

Well done! You have found the chest of the Retail Ruby and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities retail loans can offer.

Challenges • Abandoned shopping carts Research shows that cart abandonment rates can reach as high as 85% on mobile, with an average of 70% abandonment across e-commerce channels. That means every second counts during checkout, and any rent-to-own or other point-of-sale retail financier risks losing customers if they cannot move fast enough.

• Inability to scale and adapt Inflexible decisioning systems can keep your business from growing, be it with additional products, locations, or partners. Without the right easy-to-use technology, you cannot meet increased or changing customer demand swiftly and easily, giving your competitors the advantage.

• Complicated user experiences Seamless financing integration into a shopper’s experience is no longer a bonus; it is now an expected feature. Each additional click an applicant makes at checkout takes them further from completing the sale - exceptional retail lenders make the experience as simple as possible to avoid cart abandonment.

Opportunities • Instant, automated decisions Reclaim the shopping carts of the 60% of consumers who say they are likely to use POS financing over the next six to twelve months. Transform buyers into borrowers with automation that returns more accurate decisions and personalized offers to your customers in under a second.

• Go to market quickly Launch new products in record time with decisioning technology that features no-code UI, putting any business user at the helm of innovation. Scale and pivot on demand, or leverage auto-scaling for multiple product lines to help your business evolve on your own terms.

• Provide one-click applications Simplify both the frontend and backend with one-click financing processes. Data seamlessly integrates directly into your decisioning platform for instant approvals, saving your customers from having to leave the checkout screen even once.

Embrace these opportunities with the power of the Retail Ruby and you will become a legendary retail and point-of-sale lender.

Now what will you do? (click below to choose your path)

Continue the journey and seek out the BNPL Bismuth Examine the Retail Ruby chest in more depth Go back to the beginning

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BNPL Bismuth As you board your vessel to find the second to last jewel, the jostling of the already-collected treasures against your hip fortifies your resolve. While you suffer a few close calls with rocky jags and hidden sandbars, you manage to come ashore unscathed.

Cheers to you, voyager! You have found the chest of the BNPL Bismuth and are another step closer to collecting all five legendary lending jewels. To learn the jewel’s secret to success, you must understand both the challenges and opportunities BNPL loans can offer.

Challenges • Insufficient access to data One of the most appealing features of Buy Now, Pay Later (BNPL) loans is you do not need to perform a hard credit check like other retail/POS financing options - saving you money and your customers a ding to their score. However, without expansive access to both traditional and alternative data, it can be difficult to assess creditworthiness accurately, and that puts you at risk.

• Changing regulations are unpredictable With the enormous surge in popularity of BNPL products, legislators across the globe have begun to introduce new regulations for the industry. Using multiple solutions for data and decisioning can be clunky and difficult to adjust, making it burdensome to keep up with the continually morphing requirements.

• Preparing for next-gen BNPL Even though BNPL has slowed down in some regions, its adoption is still growing on the whole and transitioning along the way. The evolution of BNPL means new regulations and new channels for growth and innovation. Your decisioning platform must be ready to scale along with the increase in demand that will be propelled by the next generation of BNPL offerings.

Opportunities • Leverage alternative data Mitigate risk and make smarter decisions with a combination of alternative and traditional data. BNPL has been hailed as a tool for financial inclusion, and with the right data on your side, you can approve more creditworthy customers while keeping your risk low.

• Unify your technology Create a risk decisioning ecosystem with one solution for data, KYC, analytics, and insights. Implement integrated drag-and-drop processes to retrain models around new regulatory or business requirements in real-time across the entire BNPL customer lifecycle.

• Future-proof your solution Easily iterate processes and deploy changes quickly to get ahead - and stay ahead - of changing demand. Visualize data with prebuilt dashboards and use machine learning and AI for cutting-edge insights that will power innovation for BNPL 2.0, 3.0, and beyond.

Embrace these opportunities with the power of the BNPL Bismuth and you will become a legendary BNPL lender.

Are you ready to complete your quest? (click below to choose your path)

Finish your journey and seek out the Credit Card Quartz Examine the BNPL Bismuth chest in more depth Go back to the beginning

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Credit Card Quartz The wind whips past your face as you speed through the open water, racing toward your destiny to collect the final jewel and wield the secret to consumer lending success.

Astonishing work! You have found the chest of the Credit Card Quartz, the fifth and final legendary lending jewel. To learn the jewel’s secret to success, you must understand both the challenges and opportunities credit card loans can offer.

Challenges • Impending defaults With worldwide economic downturn affecting the global economy, the ability for consumers to pay their credit card bills on time may change for the worse. As an expert lender, you know to expect increased delinquencies in times like these, but only reactively handling defaults means you lose money and customers.

• Increased fraud In 2021, payment card fraud increased 14% to over $32 billion lost globally. As fraud gets more complex, it takes more complex data and decisioning solutions to be able to catch deceptive applications. Legacy decisioning technology often can’t filter out the fake applicants quickly enough, leaving you saddled with accounts nobody ever intended to pay off.

• Competition with new players

Opportunities • Proactively monitor account health With economic conditions slower, it’s easy to predict that some customers will have trouble paying their credit card bills. Instead of waiting around to see which do and sending them to collections, use AI and machine learning for predictive insights across the entire customer lifecycle. Implement early warning signs to identify at-risk accounts and intervene before the first missed payment.

• Stop fraud in its tracks Use flexible technology that gets more accurate with every decision it makes to stop fraudsters before they infiltrate your business. With the right data at the right time that feeds into your decisioning engine, you can instantly approve qualified applicants and reject bad actors.

• Boost innovation No matter how fierce the competition, adopt technology that makes it easy to test new risk strategies, explore new data sources, and get actionable insights with data science tools. Do it all in real-time with no-code interfaces to iterate again and again without reliance on vendors.

You have done well to make it this far, fearless traveler. You have been tested in mind, body, and spirit, but do you truly understand the power you now possess? To complete your collection and retrieve the Credit Card Quartz, you must pass one final test: recite the secrets to lending success.

BNPL has a reputation for being a less risky, more inclusive alternative to credit cards, with some going so far as to call it a “Credit Card Killer.” While in truth, credit cards and BNPL can play well together, the new entrants have highlighted that the credit card space is ripe for innovation, but it’s up to gutsy lenders like you to rise to the occasion.

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You close your eyes, open your mouth, and the secrets pour from deep within you: Secret 1: Approval speed is essential for world-class customer experience and building a loyal base of repeat customers.

Using the jewels You return triumphantly to your village, having grown in ways you do not yet know. But a question comes to your mind: now that you have the jewels, how can you harness their power? Then it comes to you: you must optimize your loan origination and decisioning platforms. But how?

Secret 2: If you want to engage new markets while fighting fraud, you need

You take the jewels out of their pouch and place them all in front of you. You ask the jewels for guidance and lo and behold, new knowledge appears in your brain. All you needs is:

Secret 3: The economy can be unpredictable but your risk strategy doesn’t

• Modernization

Secret 4: A unified data and decisioning ecosystem that combines traditional and alternative data, an advanced decisioning engine, and machine learning/ AI-driven insights will enable you to prevail over any challenge and seize every opportunity.

Many LOSes and decisioning engines have yet to fully adapt to today’s digitally native, data-driven underwriting processes and sophisticated decisioning capabilities.

Incorporate best-of-breed systems that can support everything from waterfall knockout rules to full machine learning models. And don’t stop at today’s technology when you can leverage a future-proof system that continually pioneers new capabilities, keeping you ahead of the competition.

Secret 5: The real legendary lending jewels were the friends we made along

• Faster, more accurate decisions

consistently accurate complex decisioning.

have to be - invest in flexible technology that anyone can control to easily respond to market changes.

the way.

Oops, you didn’t mean to say that last one out loud. But it doesn’t matter. You’ve completed your quest. Now, there’s nothing holding you back from becoming the best consumer lender in the land.

Pre-developed data integrations and pre-built decisioning logic just doesn’t cut it anymore. For rapid and accurate data-driven decisioning that you can easily optimize, you need technology that doesn’t take days and external vendors to manage.

• Seamless integrations What will you do now? (click below to choose your path)

Why rely on one system to handle straight-through processing that leads to unnecessary compromises when you can have it all? Integrate data and decisioning technology seamlessly into your LOS for flexible control, smarter decisions, and scalability.

Use the five legendary jewels Examine the Credit Card Quartz chest in more depth Go back to the beginning

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You finally understand that the true fifth and final consumer lending secret is that the right tech will enable flawless operation and innovation, no matter the use case.

You don’t need to go on another quest to find the right tech partner to help you unleash the power of the jewels and become the most fearless consumer lender in all the land. You can have Provenir’s AI-Powered Decisioning platform at your side.

Just like your path to lending greatness, data and decisioning solutions aren’t one-size-fits-all. Provenir’s technology combines the power of data, decisioning, and AI into a single no-code UI to help you make smarter risk decisions across the entire customer lifecycle.

Simplify your data supply chain with real-time access to alternative and traditional data, make more accurate decisions in an instant with flexible, drag-and-drop decisioning processes, and launch new products at record speed with AI-powered optimized business insights. The secret to consumer lending success is the secret to smarter decisioning: Provenir.

Examine the Chests Some of the chests that contain the legendary lending jewels may hold further treasure within them. Choose wisely for additional lending insights.

Auto Amethyst

You had an inkling that there was more, and you were right. The Amethyst was hiding two additional items in the chest: the Pearls of Wisdom.

What will you do?

Discover deeper insights into auto lending

Access an auto lending success story

Continue the journey and seek out the Mortgage Malachite

Go back to the beginning

Mortgage Malachite

As you peer into the chest below, you think you see an object in the corner. Is it

What will you do?

Get started today at Provenir.

Access predictions about mortgage lending

Continue the journey and seek out the Retail Ruby

Go back to the beginning

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Retail Ruby

Before leaving for your next stop, you see what looks like a hint of light coming from the corner of the otherwise empty chest: retail’s Pearl of Wisdom.

What will you do?

Take the pearl to access a retail lending success story

Continue the journey and seek out the BNPL Bismuth

Go back to the beginning

Bismuth BNPL

You turn to leave, BNPL Bismuth in hand, but see an intriguing sparkle come from the handle of the chest. You turn back around to take a closer look: there are two Pearls of Wisdom!

You have shuffled off this mortal coil

What will you do?

Take the first to access deeper insights into BNPL

Take the second to access a BNPL success story

Continue the journey and seek out the Credit Card Quartz

Go back to the beginning

Credit Card Quartz

Though you feel incredibly fulfilled, you figure it doesn’t hurt to poke your nose back into the chest. Thoroughness never hurt anyone. Now that the jewel is gone, you feel a dark energy coming from the now empty space.

What will you do?

Didn’t you ever learn to stay away from dark energies?

Go back and use the five legendary jewels

Stick your hand into the chest

Shut the lid and use the five legendary jewels

Go back to the beginning

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