In the extended wake of the COVID-19 pandemic, consumers, businesses and the economy are still battling the after effects. Our GDP fell by 9.5% year-on-year in 2020 — the worst decrease in over 70 years. There is a way forward, but to rebuild after the onslaught of the coronavirus, we’ll need powerful allies — technology and data.
We recently conducted a Consumer Pulse Survey to quantify the financial impact of the pandemic on Filipino consumers. The results showed 93% had their household incomes negatively impacted, and 49% said they expected more damage to come.
As a nation, we have not experienced this level of economic hardship since 1947 — after the Second World War. We’re at a critical juncture in terms of financial challenge, and the way we respond now will define the future we rebuild for ourselves.
One thing we can be grateful for is this crisis happened when the world is richly abundant in technology and data. As an organization built on the premise of using data for good, TransUnion believes the fluidity and fertility of data can fuel our emergence.
When we accurately process the continuous production of data, it delivers timely, relevant insights that reveal patterns, trends, challenges and opportunities. It allows us to make trustworthy decisions that can influence outcomes, control events and manage risk — vital aspects of consumer, business and economic recovery.
There are countless uses for TransUnion data, but here are three you can leverage to improve operational efficiency, address customers’ pain points and manage risk:
Use data to pick the right customer and achieve business goals.
Business growth isn’t just about attracting new customers — it’s about enhancing and offering opportunities to existing relationships while also safeguarding against fraud. Of the 93% who reported constrained household income, 65% are currently suffering, while 28% are no longer negatively affected. Such insights can help segment customers, allowing you to prioritize areas of growth and support. These actions can help deliver long-term, positive results for you and the consumers you serve.
Use data to offer payment terms or solutions to distressed customers.
Many respondents were concerned about their ability to fully pay bills and loans in the next four weeks, specifically mortgage (47%) and auto lease (41%). Using such data, lenders can identify customers in financial stress and proactively reach out to them with possible payment options. Deferral, forbearance or a payment holiday could help customers manage the impact of the pandemic on their finances and secure their long-term loyalty.
Use data to create new products based on consumer behavior.
Affected consumers reported changes in their approaches to savings and debt. Some cut back on discretionary spending, canceled or reduced non-essential services, and put money into emergency savings. These useful insights allow businesses in the lending sector to tailor offerings in response to current customer realities while actively supporting their positive financial behaviors.
These are just three ways TransUnion data analysis tools can help your business through the current crisis and beyond. To discuss your options, reach out to us at https://www.transunion.ph today.