• About
  • Subscribe
  • Contact
Thursday, May 8, 2025
    Login
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
No Result
View All Result
Home Industry Verticals Finance & Insurance

Lending challenges and opportunities in 2021

FutureIoT Editors by FutureIoT Editors
December 9, 2020
Photo by Karolina Grabowska from Pexels

Photo by Karolina Grabowska from Pexels

IDC Financial Insights Asia/Pacific’s latest report titled Lending Excellence is Composed of Many Moving Parts presents the new requirements for banks to respond to the unique challenges of the lending market across five segments of the credit processing life cycle, and the key objectives in building lending excellence in post-COVID times as lending makes a slow return to normal growth rates in Asia/Pacific.

“The ideal and all-encompassing mindset in lending excellence is risk-based decision analytics. The application of risk models to create risk scores for loan application or loan underwriting is already well-established in banks. This experience should be extended for risk-based scores in initiation, collections, and recovery as well as to many other crucial decisions in lending," says Michael Araneta, Associate Vice President at IDC Financial Insights Asia/Pacific.

Asia/Pacific banks rely on lending and net interest margins for more than 80% of their revenues. This observation on the importance of lending still stands and has been given much more context by the six big trends in lending identified in this study that have emerged.

Lending excellence calls for mastery in the different processes that make up the lending life cycle, ensuring speed of these business processes, accuracy and precision of the credit decision, and timeliness and accuracy of decisions across different parts of the lending lifecycle.

Each segment has its own unique objectives – speed might be the most important in some segments over others, whereas access to third-party information might be more important in other segments. Each segment also brings its own challenges, particularly credit and operational risk challenges.

Figure 1: The Many Components of Lending Excellence

There are many solution providers that support the breadth and depth of capabilities required for lending excellence. Whether through cloud-based platforms or solution sets that bring together different functionalities from various units in the bank, what is needed is a number of varied lending microservices that are extremely agile and cater to different lending needs.

"In the era when new and alternative data can hone credit models, it might be in data and data analytics by which the participation of banks in lending will be most welcome. Some, however, will grow big and well beyond the start-up and tech worlds. Financial technology (fintech) banks will emerge and will compete more directly with traditional banks," concluded Darshiniy Selvaratnam, senior market analyst at IDC Financial Insights Asia/Pacific.

Related:  Singapore launches national AI strategy
Tags: credit processingfintechIDC Financial Insights Asia/Pacificlendinglending lifecycle
FutureIoT Editors

FutureIoT Editors

No Result
View All Result

Recent Posts

  • Agentic AI-powered AppSec platform launched for the AI era
  • IDC forecasts GenAI alone will grow at a 59.2% CAGR
  • Dataiku brings new AI capabilities to create and control AI agents
  • Microsoft reveals the rise of a new kind of organisation in the AI era
  • St Luke’s ElderCare enhances data security and user experience with Juniper

Live Poll

Categories

  • Big Data, Analytics & Intelligence
  • Business Applications & Databases
  • Business-IT Alignment
  • Careers
  • Case Studies
  • CISO
  • CISO strategies
  • Cloud, Virtualization, Operating Environments and Middleware
  • Computer, Storage, Networks, Connectivity
  • Corporate Social Responsibility
  • Customer Experience / Engagement
  • Cyber risk management
  • Cyberattacks and data breaches
  • Cybersecurity careers
  • Cybersecurity operations
  • Education
  • Education
  • Finance
  • Finance & Insurance
  • FutureCISO
  • General
  • Governance, Risk and Compliance
  • Government and Public Services
  • Growth Strategies
  • Hospitality & Tourism
  • HR, education and Training
  • Industry Verticals
  • Infrastructure & Platforms
  • Insider threats
  • Latest Stories
  • Logistics & Transportation
  • Management Leadership
  • Manufacturing
  • Media and Telecommunications
  • News Stories
  • Operations
  • Opinion
  • Opinions
  • People
  • Process
  • Remote work
  • Retail & Wholesale
  • Sales & Marketing
  • Security
  • Tactics and Strategies
  • Technology
  • Utilities
  • Videos
  • Vulnerabilities and threats
  • White Papers

Strategic Insights for Chief Information Officers

FutureCIO is about enabling the CIO, his team, the leadership and the enterprise through shared expertise, know-how and experience - through a community of shared interests and goals. It is also about discovering unknown best practices that will help realize new business models.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO

Categories

  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Subscribe