Dr. Lakshmi Mohan
“Credit Cards Are Not Banking - They are Information”
It’s all about collecting information on millions of people that you’ve never met, and, on the basis of that information, making a series of critical decisions about lending money to them, hoping that they pay you back.
AND, the better it understands the customer, the more it can tailor its products to his or her needs.
Each customer carries a specific and unique credit risk and potential revenue profile, based mainly on their previous credit history (or lack thereof). The better the company can understand and assess a customer’s specific risk, the better it can manage it.