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Collections
Experience Enhances Consumer Lending Decision Making and Boosts
Yields
Uncertain economic conditions and competitive pressures in the unsecured
consumer credit markets have institutions in the United States and
the European Union struggling with profitability issues.
Following the fall of the bull market in the late 1990s, several
lenders realized that they had been lending to higher-risk customers
and now faced increased default and delinquency rates.
"New, profitable business is difficult to come by, but lending
volumes must be maintained despite the increased consumer risk exposure,"
said Dennis Behrman, Analyst at Meridien Research. "Financial
institutions must pursue one of two strategies: either streamline
and automate collections operations to maximize yield at the lowest
possible costs or incorporate behavioral and operational knowledge
gained from delinquent consumers about that yield prior to lending
to the consumer."
"Consumer Credit & Collections Strategies" is an
in-depth look at the consumer credit and collections function within
financial institutions, the overall market for unsecured consumer
credit, and strategies for profiting in this business given the
current economic environment.
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Products & Services 
