A leading fintech company specializing in home equity lines of credit (HELOCs), was seeking to optimize the management of its data operations. To accomplish this, the company turned to RiskSpan, a leader in data analytics and financial technology solutions. Through a tailored Data as a Service (DaaS) offering, RiskSpan helped the company improve its HELOC business operations by providing advanced data management and modeling capabilities.

Challenges

The company sought to enhance its HELOC operations in two critical areas:

  1. Data Management and Integration: The company was dealing with complex data sets from multiple sources, including credit bureaus, property data, and customer behavior insights. Integrating and managing this data effectively was crucial for making informed lending decisions.
  2. Risk Assessment and Modeling: Accurate and reliable risk assessment models were necessary for evaluating customer behavior and predicting loan performance. The company required a solution that could model draw behavior and other variables specific to HELOCs.

RiskSpan’s DaaS Solution

RiskSpan’s DaaS offering provided the company with a comprehensive solution tailored to address these challenges. The key components of the solution included:

  1. Advanced Data Integration: RiskSpan’s DaaS platform seamlessly integrated the company’s various data sources, enabling a more streamlined and efficient data management process. This integration allowed the company to better understand their borrowers and make more informed lending decisions.
  2. Enhanced Loan-Level HELOC Pricing and Projections: The client successfully loaded its historical loan performance data onto RiskSpan’s DaaS platform and established a monthly process within the platform’s flexible data warehouse. Using the embedded historical performance tool, the client analyzed loan-level behavior across its portfolio. This enabled the client to generate detailed collateral performance reports for investors and rating agencies, as well as leverage these insights to enhance future projections and loan-level pricing for new loans.
  3. Cost-Effective Data Services: RiskSpan also identified an opportunity to replace the client’s existing data services provider at a significantly reduced cost. By offering a more competitive pricing structure while maintaining high-quality data services, RiskSpan positioned the client to achieve substantial cost savings, making them more competitive in the HELOC market.

Outcomes and Benefits

Implementing RiskSpan’s DaaS solution brought several key benefits:

  • Improved Decision-Making: With better-integrated data and more accurate modeling of HELOC draw behavior, the client could make more informed lending decisions, ultimately reducing risk and enhancing profitability.
  • Operational Efficiency: The streamlined data management process allowed the client to operate more efficiently, freeing up resources to focus on core business activities.
  • Cost Savings: RiskSpan’s competitive pricing enabled the client to cut costs significantly, improving their bottom line and allowing them to reinvest in other areas of the business.

RiskSpan’s Data as a Service solution provided the clients with the tools it needed to optimize its HELOC business. By addressing its data integration challenges, improving risk assessment through advanced modeling, and offering a cost-effective alternative to existing data services, RiskSpan helped the client strengthen its market position and enhance overall business performance.