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Unsecured Loans: Price and Product Personalization Are the Name of the Game

  • Pricing
  • Personalization

Although originations continue to fall from 2022’s record levels, total unsecured loan balances and consumer-level balances still reached records, driven primarily by super prime consumers, representing a continued shift by lenders towards less risky borrowers. While originations in Q2 2023 were down 14.5% from last year, they remain elevated compared to the pre-pandemic period, demonstrating continued demand in this market. 60+ DPD delinquencies saw their first year-over-year decline in borrower-level delinquency in over a year, led by improvement in the performance of originations by below prime borrowers. This is something worth watching in the months to come as we look for potential impacts of the restarting of student loan payments for millions of borrowers. Lenders should continue to find opportunities given strong employment rates and a continued desire by consumers to refinance higher interest card debt."

Q3 2023 TransUnion Credit Industry Insights Report

So, What Does it Mean for the Lenders?

Lenders wanting to maintain their competitive advantage and capitalize on the healthy demand for unsecured loans need to be looking for ways to stand out in a crowded marketplace. Additionally, there is a need to consider pricing competition amid market volatility, rising interest rates, and increasing cost of funds.

This eBook will:

  • Offer direct insights into how personalized loans are changing the way banks sell their products.

  • Explain what loan personalization entails.

  • Explore the fundamentals of digital loan personalization, and the tools needed to support them.

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