New survey finds financial institutions suffer from slow model development timelines that prevent firms from fully taking advantage of cutting-edge technology
COSTA MESA, Calif.–(BUSINESS WIRE)–Experian, the leading global information services company, today unveiled its in-depth market survey on the state of predictive analytics and the future of ModelOps (model operations) for financial institutions, entitled “Accelerating Model Velocity in Financial Institutions.” The survey polled 415 consumer lending organizations in the U.S., United Kingdom, and Brazil, and provides key trends and insights on model building trends among financial institutions in three of the largest markets in the world.
Model development and deployment maturity are critical success indicators for financial institutions to launch new products into the market and increase their profitability. ModelOps, the AI-supported operational activities that support predictive model development, deployment, and maintenance, has a direct impact on how financial institutions pursue automation as well as leverage data and analytics to make more accurate decisions. Unfortunately, the survey finds that many institutions suffer from low model velocity (i.e. how quickly models can be moved into production).
“Model velocity is all about accelerating how quickly financial institutions can respond to market and competitive pressures, and what our findings uncovered is that survey respondents are challenged with inefficient development and deployment that affect their decisioning and ultimately the consumer experience,” said Alex Lintner, Chief Executive Officer, Experian Software Solutions. “Our findings shed light on the key barriers to developing and updating models, including a talent shortage and communicating model outcomes with management.”
Key findings reveal the complexity of the operating environment and the need for sophisticated processes, a robust technology infrastructure and a highly skilled workforce capable of navigating data-driven decision-making. Among the survey highlights:
- Model development and deployment currently take an average of 15 months.
- A significant 55% of lenders reported building models that never made it into production.
- Two-thirds (66%) of institutions recognize that ModelOps will shape the industry’s future over the next five years.
“The findings show that financial institutions have adopted predictive analytics models across their operations and a significant number of respondents intend to implement models across a range of use cases within the next one or two years,” added Lintner. “Anticipating this market need, Experian has a wide range of tools and data insights to help financial institutions improve their model velocity and overcome issues of model transparency.”
For more information and to access the report “Accelerating Model Velocity in Financial Institutions,” visit https://us-go.experian.com/accelerating-model-velocity-report.
About Experian
Experian is the world’s leading global information services company. During life’s big moments – from buying a home or a car, to sending a child to college, to growing a business by connecting with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organisations to prevent identity fraud and crime.
We have 21,700 people operating across 30 countries and every day we’re investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the Group.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.
Contacts
Michael Troncale
Experian Public Relations
1 714 830 5462
Read the orginal article: https://siliconcanals.com/news/business-wire/experian-releases-2023-market-survey-on-predictive-analytics-and-modelops-for-financial-institutions/
