A recent survey from Provenir revealed that more than 70% of financial services executives lack confidence in their ability to modify risk decisioning amidst increasing credit default and fraud rates. Around 43% identify fraud as a top challenge, but only 7% believe their anti-fraud measures are completely effective.
Risk decisioning becomes critical for monitoring portfolios and managing risks associated with extending credit. The survey Provenir conducted of senior decision makers at financial institutions and fintechs highlights ongoing challenges in decisioning accuracy and speed.
From the survey results, these were the key findings:
- Only 10% prioritize growing customer wallet share through upsell tactics
- Managing risk across the customer lifecycle and developing risk decisioning processes are top challenges for almost half of financial services providers
- Managing customers post-acquisition is a primary focus for over half of all financial services providers
- Around 40% of respondents find their risk decisioning only “somewhat” accurate, proving that there is room for improvement
Chief Commercial Officer at Provenir, Geoff Miller, showcased the importance of proactive risk management in this challenging economy, stating, “Decisioning is the foundation for long-term success in the financial services sector.”
The survey was conducted in September 2023, including 314 respondents from North America, Asia Pacific regions, and EMEA.