by Brandon Burns
“Why can’t I color on the walls?”
“Why didn’t I get that job?”
“Why isn’t my business more profitable?”
When was the last time you asked “Why”? This week? Today? Odds are, it’s a question that enters your mind at multiple intervals throughout a day.
From the time we begin to speak, the question of “why” drives the exploration and continual development of understanding of our world and the motives, causes, and outcomes therein.
While an answer to a question leads eventually to an action, a first “Why” is usually followed by another question and another. Questions help you understand what you don’t know, what you don’t know you don’t know, and what you should do next.
This is analytics. You’ve been doing it your whole life.
Why then is analytics such a challenging or complicated practice to employ in your business?
Until very recently, analytics, or even simple operational reports in some cases, were something attainable to you only if you had technical expertise, server infrastructure, and data-model understanding built into your team and budget; any of which could quickly become cost and resource prohibitive.
Why are things any different now? Answered simply, the rise of a movement called citizen analytics.
Citizen analytics is, in effect, the ability to deliver advanced analytical capabilities to users whose primary job function is outside the field of statistics or analytics. As technologies have evolved and an increasing amount of data science tasks are automated (more than 40% by 2020*), there’s an increasing possibility of leveraging those in the organization who may not have a formal analytics or data science skillset, but who do have an understanding of their business domain and model.
defi ANALYTICS enables citizen analytics. At a lender-by-lender level, for lenders of any size, with any skillset, defi ANALYTICS is a managed analytics platform that gives you the ability to explore, analyze, and ask “Why” without having to run technical infrastructure, understand any data models, or write any queries. These insights can then help you answer the questions that inform every decision you make, from day to day operations to high-level strategic growth plans.
You want an example?
Say you hired two additional underwriters last month to support your projected growth, but other than application volume, on what did you base the need? How many applications should one underwriter be decisioning in a week? How does that underwriter’s capture ratio change as their application volume increases? Does their decisioning time increase as their capture ratio drops? If their decisioning time increased and their capture ratio decreased, how did the deals won perform after 12 months? 18 months? What was your loss timing curve for the deals won under a team of 6 underwriters versus 8? What if you auto decisioned more apps? How does your team compare to other lenders comparable to you?
Whether you’ve never thought to look at your data for answers to these questions or you live in it on a daily basis, defi ANALYTICS can help evolve your team’s ability to ask and answer your “whys.”
defi SOLUTIONS provides a cloud-based, configurable loan origination system (LOS), pre-integrated with a wide range of fintech lending services. If you’re struggling with limitations of home-grown lending solutions, take the first step in realizing the benefits of cloud by contacting our team today or registering for a demo of defi LOS.
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