Growth and partnership strategies
Marketplace lenders are under significant pressure to continue their rapid pace of growth. In order to do this, platforms need to obtain investor capital and to acquire customers.
The following examples demonstrate how PwC assists our clients:
- Capital Sourcing: Identify sources of and assist with obtaining diverse, sustainable investor capital Partnerships: Identify and assess strategic partnerships to acquire borrowers
- Targeted marketing: Perform consumer segmentation analysis Infrastructure: Develop roadmap and scale operations to support incremental origination volume
Regulatory compliance and risk management
Marketplace lending operates in a complex and evolving regulatory environment, and compliance is critical. We assist our clients with identifying and mitigating consumer lending regulatory risks.
The following examples demonstrate how PwC assists our clients:
- Compliance Management System Design: Assess program against regulatory and investor expectations
- Third Party Risk Management: Assess program against leading industry practices, develop roadmaps, design program office, and conduct assessments
- Fair Lending and other Regulation-Specific Assessments: Assess programs and controls around regulations to identify opportunities for enhancement
- Consumer Complaints Management: Develop complaints management function focused on CFPB expectations
For more information on services, visit PwC’s US Audit and assurance services
Data and analytics
Effective use of data is considered a key differentiator for many marketplace lending platforms. Credit Modeling is not the only area where big data, machine learning, and advanced analytics techniques can provide a competitive edge - marketing and lead generation, pull-through and conversion, fraud prevention, portfolio surveillance, and collections can all benefit from improved data analytics.
The following examples demonstrate how PwC assists our clients:
- Behavioral Modeling: Develop personas to use in behavioral modeling
- Third Party Data: Analyze data collection techniques and integrations with third party data sources
- Predictive modeling: Assist with creation of predictive analytics and forward-looking metrics Credit Risk Modeling: Design, enhance, or validate credit risk models for underwriting
For further reading
Analytics means business
PwC’s Benchmarking services
Operational efficiency
Marketplace lending platforms are facing unprecedented challenges as they strive to meet heightened expectations from customers, investors and regulators while managing costs to generate profitable growth. Platforms can enhance the efficiency of their operations in order to cut costs and create an improved borrower experience.
The following examples demonstrate how PwC assists our clients:
- Loan Fulfillment: Automate Income and Employment Verification to reduce manual processing
- Data Sourcing: Identify and assist with integration of third party data providers
- Pricing: Assist with optimization of pricing models and development of dynamic pricing strategies
Servicing and collections
Marketplace lenders are responsible for defining their collections strategies and making sure their servicing operations effectively protect their investors' returns. In the event of an economic downturn effective collections may play as important of a role as strong underwriting models in keeping defaults under control and delivering strong returns.
The following examples demonstrate how PwC assists our clients:
- Cost Reduction: Reduce servicing costs through automation and workflow optimization
- Self-Service: Develop borrower self-service options for more efficient servicing and collections
- Loss Mitigation: Establish loss mitigation options for borrowers Model Optimization: Develop collections scores, establish borrower profiles or perform other analytics
- Customer Experience: Develop customer-centric strategies that improve borrower experience
