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Ben O'Brien, Managing Director

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Ben O'Brien

Managing Director

In our latest whitepaper, Seven risk predictions for 2018, we explore which trends lenders are most likely to adopt to protect themselves, consumers and the global economies, whilst also going back to the most important aspect of any business: profitability. Here's our seventh risk prediction...

#7: Getting back to traditional risk – increasing profitability

Over the last few years there has been increased focus on regulation within lending, driven by the financial crisis and an enhanced scrutiny on unexpected and expected losses. As a result, banks are now better capitalised than ever but efforts previously focused on optimising customer and portfolio value have been diverted to address the increased regulatory burden.

Advancements in Artificial Intelligence (AI) and data science promise to revolutionise the way lenders operate. Better use of data and of mathematical approaches to solving business problems mean that lenders can adapt to new regulations and increase portfolio profitability simultaneously.

With IFRS 9 predicting losses over the lifetime of the customer, the time has now come to understand and optimise revenue.

To read all seven of our risk predictions, download our latest guide.