Share of Wallet Data: How Looking Beyond Your Portfolio Can Change the Way You Manage Risk

It’s no secret that banks and financial institutions are facing challenging times. With debt, credit use, and inflation all on the rise, risk managers are seeking new ways to grow the right accounts and build a stronger overall portfolio.

To do this, you need to better understand your customers. You’ve likely heard of share of wallet data as a key metric in financial services marketing — but that’s not the only place it can provide valuable insight. 

Today, risk managers are looking to share of wallet data to broaden their view and get actionable insights on their customers’ behaviour outside of their portfolio. If you’re only evaluating account potential based on customer behaviour within your own portfolio, you could be missing important opportunities for growth with your best customers. 

 

Here’s how data on the share of wallet can help you build more focused account management strategies to strengthen your overall portfolio:

 

See where you stand in the market

With deeper insights at the account level, you can build a more accurate macro-view of your entire portfolio — and benchmark performance against your peers. This can help you better understand your position in the market and determine the overall potential value of the customer relationship.

 

Create powerful risk segmentation strategies

Leverage information on your customers’ spend with the competition to improve profitability within your base. With comprehensive insights into consumer spending behaviour, you can more easily inform risk strategies to drive growth and remain competitive.

 

Deliver the right offers to the right customers

To build the strongest possible portfolio, it is crucial to work toward both minimizing account risk and delivering on portfolio growth objectives. Share of wallet data helps provide a deeper understanding of your customer's preferences and affinities for certain products. This empowers you to prioritize your high-potential accounts and deliver targeted, customized offers designed to build customer loyalty.

 

Revolutionize risk management with Share of Wallet Analysis™ from Equifax

Credit is changing and risk managers need to change with it. That’s why Equifax created Share of Wallet Analysis — a solution that gives you actionable insights into customer credit relationships across all lenders. 

By incorporating Share of Wallet Analysis into your credit decisioning and account reviews, you can get a more complete view of your customers' spending versus your competition. This can help you develop offers to grow profitability within your existing customer base.


Want to see what a full picture of your customers can do for your business? Read more here or contact our team today.

 

This article is published by Equifax Canada Co.® 2022. All rights reserved. No part of this article may be reproduced, copied or transmitted in any form or by any means, or stored in a retrieval system of any nature, without the prior permission of Equifax Canada Co. This article is for informational purposes only and is not intended to be legal or business advice.