The South African consumer lending landscape has faced significant headwinds over the past several years, but despite challenges, tremendous opportunities remain. Lenders are seeking new ways to tap into market potential and spur growth while managing risk. At the same time, consumer expectations are increasing rapidly. Lenders will need to adapt to growing demands in responsiveness, choice and service to succeed. To help you better understand what’s to come, we’re launching the inaugural TransUnion Africa Financial Services Summit, an invitation-only working session for senior executives in the banking, finance and credit industries.
Our theme — The Consumer First Era — speaks to the growing need to understand consumer preferences, choices and behaviours. With consumers more empowered than ever to pursue options that fit their needs, lenders must be agile in delivering relevant and timely products and services. At the Summit, we’ll provide deeper insights into the consumer first dynamic, sharing strategic concepts and practical approaches that can help lenders thrive in this challenging environment. You’ll engage in interesting discussions, network with your peers, and ultimately gain a clearer view of the road ahead.
Successful lending relies heavily on having an effective operating model for understanding consumer behavior and the overarching dynamics of the marketplace. Earlier this decade, TransUnion introduced the concept of the Consumer Finance 3.0 era as our global operating model, driven by regulatory concerns, channel diversification, the emergence of agile and well-funded start-ups, and increasing consumer expectations. That model served us well for a number of years in understanding and responding to the lending marketplace. However, the market continues to evolve, and we believe our model should as well. In this session, we’ll introduce our new operating model — the Consumer First Era — and explain what it means for lenders as the balance of power has shifted to the consumer.
The emergence of the Consumer First Era has significantly raised the bar for what banks and financial services providers need to deliver, and the capabilities they must possess to be successful. Consequently, lenders increasingly expect their business partners to understand where the market is going and bring forward innovative solutions to progressively complex business problems. In this session, TransUnion Africa’s CEO, Lee Naik, will share the journey TransUnion has undertaken to transform its business and become more nimble and proactive in serving the lending marketplace, and highlight the new capabilities our partners can expect over the coming months and years.
The South African economy is at a crossroads. Numerous positive trends, including an improving GDP and rising retail sales, provide reasons for optimism. At the same time, other persistent factors, such as high unemployment and stagnant earnings, generate significant headwinds for the consumer. In this session, leading scenario planner and strategist Clem Sunter will explore key economic data and trends, and how they’re impacting retail lending and the consumer. He’ll also share perspectives for the future movement of these economic indicators to enable smarter decisions for your business.
Risk, product and portfolio managers alike are always on the quest for insights as to what in the marketplace drove their performance trends in a specific direction. Benchmarking against industry movements is a critical exercise every lender should perform to identify gaps and opportunities in strategy. However, getting a clear picture on overall industry trends is rarely easy or straightforward. And it's even more challenging to draw a storyline from those trends, and then relate that story to business strategy. In this session, we’ll provide a general outlook and commentary on the South African economic situation, our perspective on key trends, and critical dynamics in the retail marketplace.
From the time a consumer enters the credit lifecycle and is assigned his or her first credit score, there’s an opportunity that arises to better understand credit needs and behaviours that follow that journey. While credit scores are the traditional ingredient to a basic underwriting practice, there’s more to analyze and assess for a new-to-credit consumer. In this session, we’ll educate around a consumer’s journey through the credit lifecycle from the assignment of the first credit score. As younger consumers enter the lifecycle, it’s important to understand how lenders can identify risk-eligible consumers with thinner files and lower risk scores. Such information will help enable lenders to enhance underwriting practices and create organic growth opportunities tailored to consumers with new and growing credit needs.
How well do you know the industry you’re working in? Which elements are just as you expect, and where are there potential surprises? In this interactive session, you’ll learn interesting facts and insights about the consumer lending industry derived from TransUnion’s comprehensive database of credit information.
Are consumers who actively monitor their own credit reports and scores more attractive to lenders? In the Consumer First Era, consumers have become increasingly aware of the importance of strong credit scores in gaining access to new credit, as well as the best pricing of that credit. Today’s consumers are taking a more active role in monitoring and understanding their own credit health. But is self-monitoring indicative of improved performance? Are consumers who monitor their credit more active in opening and using new credit products? In this session, we’ll share findings of TransUnion research studies performed in multiple, global markets on consumers who self-monitor their credit, and present comparisons to consumers who do not self-monitor, in terms of loan performance, credit risk improvement, and new product origination and usage.
It’s a fundamental goal of every lending institution to grow. This is achieved through the wider use of credit by its existing customer base, and the expansion of its customer base — the latter commonly referred to as universe expansion. Yet when lenders discuss the topic, the first (and often only) thing that comes to mind is expansion further down the risk spectrum. While lenders can certainly acquire more customers by relaxing their underwriting criteria, doing so can result in higher delinquencies. In this session, we explore practical approaches to universe expansion along multiple dimensions, with the goal of preserving risk thresholds while reaching more consumers. We’ll present practical examples of different forms of universe expansion, and discuss some of the mechanics of each approach.