Are You Leveraging the Right Data?

New data sets are paraded before the lending market constantly, each promising to provide all the information needed to understand customers inside and out. The individual value of these data types varies greatly, as does the level of automation required to access, filter and standardize it into formats that can be easily analyzed. But when combined, these data sets can be useful for lenders when assessing the financial health of a company.

Here’s a look at the types of data lenders must evaluate and the level of automation required to access it.

LOW LEVEL OF AUTOMATION

Traditional Data

• Credit data (loans and suppliers)
• Company description
• Financial statements
• Collateral and guarantees
• Owners and directors
• Delinquent federal and state tax payments

MEDIUM LEVEL OF AUTOMATION

Useful 3rd party data

• Phone
• Utilities
• Rent
• Mail and courier
• Insurance
• Payments

 HIGH LEVEL OF AUTOMATION

Accounting Data

• Income statement
• Balance sheet
• Payables
• Receivables
• Cash flow

 Open Banking

• Bank accounts
• (current accounts and cards)

 New Data

• Social media reviews
• Online distributions
• Digital journey data

Regardless of which data set or combination of sets you leverage, a truly optimized lending process that harnesses the power of data must be digital.