EP 5 Data Transparency and the Future of...

Vadim Verkhoglyad, Head of Research at dv01, joins the podcast this month with his rich background in data and performance analysis. In this episode, Jeff Bogan, host, and Vadim discuss several key topics, including data transparency in consumer credit, consumer behavior psychology and mindset, the effects of inflation and debt on home prices and home insurance, and the implications of zero interest rates on future consumer credit.  

Looking ahead, Vadim identified opportunities to enhance consumer lending, such as better data utilization and lower APRs. He acknowledged challenges like outdated systems, financial literacy gaps, and the need for greater market maturity to fully realize the potential of more transparent and scalable unsecured lending. 

“2024 has been exceptional for performance. So some of that is certainly a correction from how bad 22 and 23 were, but a lot of that is still kind of—healthy just credit performance.” – Vadim Verkhoglyad   

“I've been focused on getting people to understand that the market is in full recovery mode. I think some people still think that performance is trending down, which it certainly isn't.” – Vadim Verkhoglyad 

 IN THIS EPISODE: 

• [1:22] Data transparency in consumer credit  
• [4:49] Vadim describes his role at dv01 and the psychology and mindset of consumer behavior 
• [10:55] Discussion about inflation and debt and home prices and home insurance 
• [15:00] Zero interest rates (ZIRP), and drivers of future consumer credit  
• [20:33] Discussion of unsecured credit and financial literacy and weak lending practices 
• [27:26] The value dv01 brings in terms of transparency to the lender and how markets evolve 
• [32:16] Vadim offers suggestions to investors 

 KEY TAKEAWAYS: 

• The increasing use of data and technology, such as cloud computing and big data analytics, fundamentally changes how credit is assessed and underwritten. This shift towards data-driven decision-making has improved credit risk assessment, opened new lending opportunities (like short-duration, high-yield characteristics), and increased investor confidence.    
• The housing market faces significant challenges, including rising costs, regional disparities, and the impact of events like the housing insurance crisis. These factors impact lending performance, strain homeowners financially, and reshape the credit landscape.    
• Challenges remain while opportunities exist to improve consumer lending, such as disrupting the credit card market through better data utilization and lower APRs. These include outdated systems, financial literacy gaps, and greater market maturity to fully realize the potential of more transparent and scalable unsecured lending.  

RESOURCE LINKS  

dv01 - Website 

Vadim Verkhoglyad - LinkedIn 

Jeff Bogan - LinkedIn 

ABOUT THE GUEST:   

Vadim Verkhoglyad leads dv01’s research and publication efforts, authoring analysis on consumer credit and distilling complex financial data into actionable insights. With experience across structured credit, finance, and technology, Vadim has an extensive background in data and performance analysis, structured credit investing and research, and capital markets. He started his career as an analyst at Fitch Ratings and then...