After the Loan: Continuous Monitoring of the Consumer

[Editor’s note: This is a blog post from Terry McKeown at Envestnet | Yodlee. Envestnet | Yodlee is a Bronze Sponsor at LendIt USA 2017 which will take place on March 6-7, 2017 in New York City.]

The online lending industry is completely transforming the offline lending industry. From turning offline loan applications to digital applications, all the way to using banking data to better include the underbanked and verify assets, the lending process is becoming more streamlined, with less friction and more comprehensive data.

On March 7th at the LendIt USA 2017 conference, I will be presenting After the Loan: Continuous Monitoring of the Consumer, which runs from 2:40pm to 3:05pm.

This will cover the value of alternative data, including the markers and indicators within a borrower’s checking account, such as a NSF fee or the ratio of incoming-vs-outgoing cash flow. Normally, credit bureaus don’t receive a full file update for 30 to 45 days, but alternative data can help lenders understand what’s going on in a borrower’s financial life in a couple of days, as well as monitor the peaks and valleys over time. Lenders don’t want to wait for 30 to 45 days, they want to be able to act as soon as they see these changes occur.

By supplementing traditional borrower data with transaction-level detail such as checking account transactions, non-credit obligations, and utility bill payments, lenders can gain a more holistic view of potential borrowers and existing customers. With greater insights into income and spending and a better understanding of a borrower’s credit risk, their risk profile for a loan can change significantly. Along with the potential to increase loan approvals, using consumer-permissioned financial data as an additional data layer can work to reduce loan defaults and fraud.

With solutions from data aggregation providers like Envestnet® | Yodlee®, lenders can serve applicants looking for smaller loans and shorter payback periods. By going beyond traditional credit scores to include alternative lending data such as checking account transactions, deposits, and balances, lenders can gain more insight on the borrower’s credit risk, which can increase loan approvals while reducing the risk to the portfolio and the risk of defaults.

LendIt USA 2017 is the largest annual gathering for lending professionals and the fintech industry. The organizers expect 5,000 attendees to attend, including investors, banks, service providers, educators, and journalists.

Our team at Envestnet | Yodlee is excited to sponsor LendIt and we will have a booth at the conference, held at the Jacob Javits Center in New York City on March 6th and 7th, 2017. LendIt will have 20+ keynote speakers, eight fintech tracks and 120 breakout sessions, as well as over 200 sponsors and exhibitors who will fill the 100,000 square feet of the event’s exhibition expo hall. Register with code “Yodlee17VIP” to receive a 25% discount on tickets.

Lastly, on March 7th at 6:30pm, LendIt will host the first ever Industry Awards covering 18 different award categories. We’re proud that some of our customers and partners such as Zopa, OnDeck, Kabbage, Avant, StreetShares, Sindeo, and Blend will be recognized for outstanding achievement in lending and fintech.

For more information on speakers, sessions, and panel discussions at Lendit 2017, visit their website at

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