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To continue reading and learn four essential risk-based questions to ask when evaluating a customer’s credit-worthiness, you must be a paid subscriber to Your Virtual Credit Manager. Do you need help assessing customer creditrisks? Ensure the account meets your cybersecurity requirements.
From marketing automation to cybersecurity to customer support, businesses are applying automation in a variety of creative ways. Utilizing creditscoring: Teams can use creditscoring models to evaluate the creditworthiness of customers and identify those who are most likely to default on their payments.
Source: LinkedIn Typically, direct lenders are also more specific with creditscoring and other stipulations. AI integration will become increasingly used for more accurate and efficient creditrisk assessments. The changing atmosphere of data and privacy practices will result in new cybersecurity measures.
But change always comes with risk, and the evolution of lending brings a set of emerging risks that financial institutions must take proactive steps to address in order to maintain the stability and integrity of their digital lending ecosystems.
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