by Kristin Moyer | December 17, 2009 | 3 Comments
Despite predictions that loan origination volumes could drop 40%-60% in 2010 in segments like the US mortgage market (source: “Mortgage Workers: Keep, Cut, Transfer,” American Banker, 4 November 2009), Gartner client interactions reveal that banks are actively working to improve their loan origination processes, data and applications. For banks that seek to improve loan origination, [...]
Category: operations Tags: loan originatoin, p2p lending
by Kristin Moyer | December 4, 2009 | 1 Comment
The FDIC just announced (see here) that 60 million adults in the US are either unbanked or underbanked. With a population of about 300 million, I calculate this to be about 20% of the population – the FDIC is saying it is 25% of households in the US. Much of the attention this article is [...]
Category: operations Tags: unbanked, underbanked
by Kristin Moyer | December 1, 2009 | 2 Comments
Rick DeLotto and Kristin Moyer here. I live in kind of a typical middle class neighborhood. Not too much happens here other than when it snows, people go crazy – kids are out with sleds and adults hop in cars and get to the mountains as fast as they can to get some fresh powder. [...]
Category: operations Tags: workplace violence
by Kristin Moyer | November 20, 2009 | Comments Off
Doug McKibben recently published a research note on social networking and commercial banking (paying Gartner clients please see “Social Networking for Commercial Banking: An Opportunity and a Challenge for Banks”). Social networking, online chat, blogs and mobile services are among the leading-edge communication and networking technology phenomenon that have become increasingly embedded in the fabric [...]
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Category: operations Tags: commercial banking, social networking
by Kristin Moyer | November 11, 2009 | 2 Comments
Red deer still refuse to cross the border between Germany and the Czech Republic (see “Deep in the Forest, Bambi Remains the Cold War’s Last Prisoner,” Wall Street Journal). During the Cold War, a high electric fence and barbed wire fence separated West Germany and Czechoslovakia. This would at times sever the heads of deer. [...]
Category: operations Tags: new normal
by Kristin Moyer | November 10, 2009 | 1 Comment
I spoke with someone in the industry recently that said something like 20%-30% of borrowers who are current on their mortgage at the time of modification later end up defaulting. If a borrower has fallen behind on payments, the rate is more like 70%-80%. Proactively pursuing borrowers in distress is a pre-delinquency management strategy, and [...]
Category: operations Tags: default management, lending, mobile
by Kristin Moyer | November 5, 2009 | 3 Comments
One of the most dramatic social changes in history is brewing according (see entire article in The Economist: “Go Forth and Multiple a Lot Less”). At some point in the next several years, the fertility rate of half of the world will be 2.1 or below. This is replacement level fertility, where people only have [...]
Category: operations Tags: replacement level fertility
by Kristin Moyer | November 4, 2009 | Comments Off
Predicts 2010 is hot off the presses (for paying Gartner clients): “Predicts 2010: Operational Technologies Present Threats and Opportunities in Banking and Investment Services.” IT leaders at banks and investment service firms should use this analysis to support their business and IT planning in 2010 and beyond, and to avoid wasted investments. This year’s predictions [...]
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Category: operations Tags: predicts 2010
by Kristin Moyer | November 4, 2009 | 1 Comment
When I first saw the announcement that Avaya was getting into mortgage mods, my first thought was honestly, “Another provider to jump on the bandwagon.” Then I thought again. Proactive Outreach for Financial Services is an outbound contact solution that uses voice automation to determine whether or not a borrower qualifies for modification (previously it [...]
Category: operations Tags:
by Kristin Moyer | November 2, 2009 | 3 Comments
Contrasted to credit card issuers and consumer lenders, mortgage servicers are being less aggressive with the use of predictive analytics, optimization and behavior modeling. For one thing, mortgage servicers have fewer levers to use and less data to leverage in reducing loss compared to issuers of revolving credit. The cost of servicing has also gone [...]
Category: operations Tags: analytics, loan portfolio management
