Retail banking credit and analytics

Retail banking credit and analytics

To start off the second season of Branching Out, our retail banking podcast, hosts Kristin Korzekwa and Bill Dworsky are joined by Dave Wasik, Partner at 2nd Order Solutions. In this episode, the group discusses trends across the credit space, including those that are affecting students and homeowners in particular. Plus, hear about the importance of advanced analytics and digital collections, and how banks can expand on their business strategy to find success in these areas.

In terms of what I'm looking for this year, two things. One, we're beginning to get a read on loans originated in late '23, and eventually as the year goes on, we'll start to get an early read on early '24 originations. I think that will be very telling because over the past 12 to 18 months, most lenders have tightened their underwriting standards. And so, when we see tightening of underwriting, what you'd want to see is improvements on a vintage over vintage basis. If we don't see that improvement, or if we see continued worsening, that would be a sign that all things being equal, the environment is continuing to get riskier.

—Dave Wasik
Partner at 2nd Order Solutions

Collections is on a 20-year journey from being entirely inbound and outbound phone driven to being more of a digital first approach. And that leads to a lot of implications around strategy, around technology, around what the operating model and talent needs for collections end up being. And now, we're seeing more and more cases where there is a head of digital marketing for collections because so much of the leverage now, is in not just getting the right frequency of contact but saying the right things, and using the right tone of voice, the right calls to action.

—Dave Wasik
Partner at 2nd Order Solutions