Growing Revenue By Focusing on Profitability, Not First Payment Default
Many non-bank lenders base their lending decisions on predictions about which applicants are likely to incur a First Payment Default (FPD)—that is, which applicants are likely to be late making their first payment on a loan.
Lenders assume that by predicting FPD they will be able to predict which applicants are likely to default on the loans entirely, resulting in losses for the lender.
Read this paper to learn how focusing on profitability enables lenders to:
- Grow profitable accounts
- Reduce FPD rates by 60%
- Support financial inclusion
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