First-Time Defaulters: Changes on the Horizon?Highlights from the second survey in a series conducted by the Deloitte Center for Financial Services |
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Consumers who have been financially impacted by the credit crisis and subsequent recession – a segment we call first-time defaulters – are continuing to struggle with lender interactions during the default experience. First-time defaulters: Changes on the horizon? is a follow up to a national consumer survey conducted in 2010, which allows us to monitor the progress of this important customer segment for banks and lenders.
While 11 percent of respondents remain in the first-time defaulter segment, it appears that their lending experiences continue to be below expectations as they cited low confidence in their ability to obtain credit products if and when they needed them. This segment of first-time defaulters represents a challenge for banks and lenders as they are struggling with how it can best be served, trying to find a balance between maintaining good relationships for future profitability and reducing potential credit losses.
Please see the attached for select findings as we examine these and other issues facing the retail banking industry.
First-time defaulters: Changes on the horizon?
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