Boston, May 23, 2012 – A new report from Aite Group identifies promising technologies for a credit industry facing difficulties and presents the value proposition of each. The report, which traverses the consumer and commercial credit landscape, details nine unique, viable, and much-needed solutions for banks, credit unions, and finance companies struggling to meet short- and long-term credit challenges.
Retail and commercial credit executives cite two areas as responsible for consuming available funds earmarked for IT development: risk and growth. This is not surprising; credit risk, in the form of loan losses and lack of demand, has driven the consumer loans portfolio into a nearly US$1 trillion dive in just three years, and financial institutions have precious few IT dollars available to spend on improving lending. But established financial industry providers and new players are committing resources to blue-sky development and channel-specific initiatives. These efforts have the potential to improve the financial performance of banks, credit unions, and finance companies. Lenders, for their part, struggle to find new opportunities and identify which ventures promise potential for their institution.
“Credit industry needs are easily defined: differentiate the institution, simplify processes, protect profits and brand, and provide quality service at the customer level,” says Christine Pratt, senior analyst with Aite Group and author of this report. “Given tight IT budgets, however, financial institutions and vendors must develop a business case for investing in technology that is capable of driving meaningful change.”
The report profiles emerging credit-industry technology solutions provided by BillFloat, CGI, Ftrans, Kabbage, Lexmark, Next IT, WAUSAU Financial Systems, WebEquity, and Weemba.
This 38-page Impact Note contains 13 figures and 12 tables. Clients of Aite Group’s Retail Banking or Wholesale Banking services can download this report.