Optimizing Decisioning Technology in a Recession

Nov 18, 2022

Navigating dynamic policy objectives, economic fragility, and market fluctuations require financial institutions (FIs) to balance core banking fundamentals with innovation.

Navigating dynamic policy objectives, economic fragility, and market fluctuations require financial institutions (FIs) to balance core banking fundamentals with innovation.

A data-driven strategic approach is integral to achieving that balance, helping FIs mitigate the impact of economic turbulence. Access to real-time, quality data is essential to this approach. It provides critical insight – shedding light on opportunities and exposing vulnerabilities – allowing the financial industry as a whole to allocate resources proactively.

A recent BAI1 report encourages banks to identify and operationalize their information advantage, pointing out that “…data feeds strategy and optimization makes strategy actionable.”

They reinforce that data remains the best indicator of customer behavior, and banks or financial institutions that use it to inform customer strategy (e.g., identifying cross-sell opportunities) often have “stickier” customer relationships.

In an economic downturn, optimizing the collections and recovery process is key to balancing risk, with efficiency and customer retention. Check out Preparing for the Future of Consumer Lending and Debt to see how upgrading technology to modernize collections operations can maximize recovery, reducing charge-offs while retaining customers.

In an economic downturn, optimizing the collections and recovery process is key to balancing risk, with efficiency and customer retention. Check out Preparing for the Future of Consumer Lending and Debt to see how upgrading technology to modernize collections operations can maximize recovery, reducing charge-offs while retaining customers.

A strong framework is at the core of this data-driven method. To a large extent, lenders that leverage technology that offers the functionality necessary to minimize risk and the agility to adapt to evolving market conditions will emerge from a recession with a competitive advantage.

Top decisioning technology platforms provide business intelligence resources, helping banks control costs and drive revenue – regardless of the state of the economy. With a powerful decision engine, financial organizations can quickly deploy tactics to acquire, service, expand, and retain their customer base, bolstering growth across all lines of business, and covering the entire consumer life cycle.

Download "5 Tools for Proactive Recession Mitigation" to see technology, data intelligence, and automation tactics for banks to manage the impact of an economic slowdown.


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5 Tools for Proactive Recession Mitigation

Download “5 Tools for Proactive Recession Mitigation” to see technology, data intelligence, and automation tactics for banks to manage the impact of an economic slowdown

Sources

  1. Plotting the future of digital banking: BAI Banking Strategies Executive Report. (2022). https://www.bai.org/wp-content/uploads/2022/11/executive-report-plotting-the-future-of-digital-banking.pdf

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