underwriting process | Insight lending cloud

5 Qualities To Consider When Identifying Your Ideal Borrowers


When it comes to defining an ideal borrower, we wish there was a simple list of instructions; However, it’s not that simple. The underwriting process is time-consuming and often times, not reliable. If you are uncertain about the likelihood of a consumer paying back their loan, take the time to re-evaluate before making a final decision. We believe our platform, Decision Cloud, can help. 


Major Factors In Lending Consideration


Modern consumers are becoming increasingly hard to measure using traditional credit scores.

Social data, is extremely useful in determining how likely a borrower is to repay their debts; Such as:

  • income history
  • work standing
  • credit history
  • personal background

Each of these factors play an essential role in determining a consumer’s likelihood of repaying their loans.


However, screening through data may take massive amounts of time and energy. Most lenders simply do not have the time or skillset to handle this ‘leg work.’

To solve this problem, Insight has created a platform to help lenders identify ideal borrowers; The Decision Cloud platform. This platform integrates several elements- from credit data, to fraud warnings- so that lenders can finally get clear insight into the data of potential consumers. Decision Cloud is an easy-to-use platform that will streamline and expedite any lending business. It handles the majority of leg work for lenders.

The five following basic evaluation criteria will help lenders to identify the ideal consumer for their business model.



Income History And Level

Income history and level are both metrics that offer insight into a consumer’s capacity to repay a loan on time. If a consumer does not make enough per year to cover the cost of the loan along with living expenses, they may not be able to repay their loan.

Work Standing

Is your credit applicant  actively working? If not, are they making the effort to find work? If someone is self-employed, are they taking the steps necessary to ensure consistent work? These are all questions to consider when evaluating the work standing of your consumer.

How Decision Cloud Can Help Identify Income Data and Work-Standing Data:

Income history, income level and work-standing status can be difficult to track. Even more so, it can be very difficult to make a confident and informed decision on data that can easily be misconstrued. However, Insight strives to make online lending more simple and predictable; Which is why we’ve introduced data services into our Decision Cloud platform, that help track and deliver hard to find information.

By using Decision Cloud’s Free Filter Scorecard, lenders can simply apply an income range filter and/or income source filter, (ie. self-employed, welfare, disability, etc,) and retrieve the applicable data. They can also filter out the frequency of income, such as: weekly, biweekly, or monthly. Insight to this data will guide lenders into a confident decision for their investment.



Credit History

Credit history works well for individuals who have followed traditional financial paths for the majority of their life. However, there are several members in the underbanked community who have low or unestablished credit, even though they have the financial means to pay back loans regularly. Perhaps, they have just avoided taking on unnecessary debt as a means to better align with the things that resonate with them. This sort of consumer is characteristically hard to quantify, however, and relatively uncommon.

How Decision Cloud Can Help Identify Credit Data:

To assist in consumer credit data, our Decision Cloud platform offers services such as: Data X and Factor Trust’s Credit Reports. Decision Cloud communicates with these third party vendors to allow lenders to customize their underwriting into their decision waterfall.



Criminal Background

Criminal background as an adult may indicate that a borrower has run upon many different life circumstances and either handled them poorly or had terrible luck. A criminal history can be a red flag, but many consumers come to the bargaining table with a written explanation of the situation surrounding their criminal past.

Before immediately writing off prior criminals, it may be worth the time to do some more digging. Many of them are able to clearly articulate the reasons or situations for their past and are seeking to rectify or move past them.

Identifying Fraud

Fraud can make lending a nightmare—sometimes making the financial grace given to a consumer, an unresolvable headache for the lender. There are many ways to identify potential fraud, but four examples are:

  • Check their tax returns
  • Offer collateralized loans
  • Request recent income history as well as long term income history
  • Request an explanation for long employment gaps

How Decision Cloud Can Help Identify High Risk Consumers:

TruFraud, TruScore and TruPhone work collectively in the Decision Cloud platform, to protect online lenders from leads that are likely to be a high risk and/or fraud. It works as an IP forensics and email validation tool that protects lenders from marketing fraud and consumer lead fraud. With data points from GeoIP distance to internet risk score, clients can customize rules in order to filter out leads containing invalid or impossible information.


Sifting through seas of data is challenging and time consuming for lenders. The average person is expected to generate 1.7MB of data per second in existence by 2020. With the use of a platform, such as Decision Cloud, lenders can efficiently sift through the growing amounts of data and use it to their advantage. Ultimately, we know how time-consuming and frustrating the data challenge is for lenders, which is why our team at Insight designed and developed Decision Cloud.

Decision Cloud does data research on demand, so that you don’t have to. Decision Cloud can sift through the web for any pertinent information and help lenders make an informed decision without the intellectual overhead. In addition to analyzing other information, our Decision Cloud reviews the above criteria in one easy to read display. If you’d like to learn more about our solution, please feel free to reach out!

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