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Capturing vs. Analyzing

How do you know whether your company is running as efficiently as it can be? How do you know whether you’re receiving maximal returns on your investments? A common answer to these questions is, “Well we try to capture as much data as we can in order to ensure our process.” The issue is that capturing the data is only half the battle. If an institution is unable to properly analyze that data and execute proper plans of action based upon the results of those analyses, then the efforts undertaken to capture the data were in vain.

Banks and lending institutions place a very large emphasis on lowering costs of origination and ensuring that their loan officers wring the most value out of every lead. They utilize their data to measure client retention and closing ratios for qualified applicants. However, all too often, those entities focus only on those clients and applicants who initially qualify for the financial products that they offer. Many of those entities simply disregard those consumers who fall outside of qualifying parameters, when they could be leveraging that data to create new pipelines and close more loans.

Thirty-nine percent of all mortgage declines are due to credit profile. If a lender or financial institution is cognizant of that statistic when scrutinizing their turndown data and average loan size, they will be able to draw some conclusions about how much loan opportunity is lost due to credit profile. By disregarding the decline data, many companies deprive themselves of millions of dollars in potential new business. Luckily there is a way for banks and lenders that recognize the missed opportunity to capitalize and convert those declines into closings.

Partnering with non-profit organizations that specialize in credit rehabilitation is one of the most effective ways to go about it. When choosing a partner, it is imperative that the referring entity is able to track its referrals. This ensures that when the referral becomes qualified for the financial product for which he or she initially applied, the referring entity is immediately alerted so it can recapture that business.

About Author: Elizabeth Karwowski

Elizabeth Karwowski is CEO of BEMG (MBO Holdings Corp.). She also heads BEMG's, operating subsidiary Get Credit Healthy, which provides consumers with the tools and resources they need to eliminate debt, build credit, and make sound financial decisions.  Karwowski is a leading credit expert, and has been featured on FOX News, MSNBC, and NBC.

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