Redlining Analytics
Redlining refers to the discriminatory practice of denying or limiting financial services like loans or insurance to residents of certain areas based on the racial or ethnic composition of those areas rather than on an individual's creditworthiness. Needless to say, redlining analytics is critical for regulatory compliance, and avoiding even the appearance of this practice must be an important part of an institution's overall lending policy and practices. That's where Premier Insights comes in.
Identify Your Redlining Red Flags
At Premier Insights, redlining analytics involves the use of data analysis, statistical methods, geographical information systems (GIS) and more to identify and measure instances of potential redlining in practice. Bringing our expertise to bear on datasets such as loan application data, home ownership, property values, demographic information, and credit scores (among many others), we can identify those geographic areas in which special care must be taken to avoid any perceived pattern of exclusion based on race, ethnicity, or income.
By looking at loan approval rates, interest rates, or other lending metrics across different demographic groups, we can identify statistically significant disparities that may not be explained by credit risk alone. Moreover, we can use predictive models to forecast where potential redlining might occur based on historical data as well as current trends.
Redlining Case Studies
Managing Redlining Risk
Redlining risk is perhaps the biggest fair lending risk facing today's financial institutions. That’s why Premier Insights provides expertise, as well as our Radiant software solution, to help lenders manage their lending policies and avoid even the appearance of the practice. Utilizing myriad datasets, we can identify potential problems and address them before they become issues of concern. Contact us today about how we can help you manage risk across your organization.
Your data has a story to tell.
In fact, your data has many stories to tell—if you know how to find them. We can to do that for you, and we'll include as much detail as possible. Contact us today to find out how we can help you.