Posts by Adrian Davies
Credit union car loans
Credit union car loans are becoming a reality. 7.5m people bought 9.2m cars in 2021. 8 in 10 of those were second hand. The average asking price for a second hand car was up 11% to just under £16,000. Credit unions have struggled to take advantage of this demand. In Great Britain fewer than 1%…
Read MoreFeatured feature: debt ratios
Debt ratios are important. And the cost-of-living crisis makes affordability assessments are more important than ever. To help loans officers identify problems early on, the NestEgg decision engine displays three debt ratios, speeding up loan decision time because we do the calculations, so you don’t have to. Credit worthiness rules from the FCA state that…
Read MoreFeatured feature: Automatic alternative offer
NestEgg’s decision engine provides an automatic alternative offer. Problem Sometimes a loan applicant applies for too much. But, given their credit profile, how much is the right amount? Working out an alternative offer is consuming. Checking lending policy to work out an acceptable amount takes time. The process slows everything down. As a result, members…
Read MoreNestEgg decision engine hits £1/4bn of loans
This week NestEgg decision engine hits £1/4bn of loans assessed. The £250,000,000 represents 200,000 loans having been evaluated using the NestEgg decision engine. But it’s the successes behind the overall big number that really matter. For example, every month in the last year has seen record lending for Central Liverpool Credit Union. Our latest London-based…
Read MoreLoan decisioning in a cost-of-living crisis
The cost-of-living crisis is hitting borrowers across all income groups. Consequently, responsible lenders need to adjust their approach when assessing loan applications. According to the Resolution Foundation, the typical working-age household faces an income fall of 4% or £1,100 in 2022-23. However, the poorest quarter of households will see income fall by 6%. This is…
Read MoreNew feature: compare default balances
NestEgg’s decision engine now enables users to compare default balances. Defaults, especially recent ones, are a predictor of bad debt. But responsible lenders like to give the benefit of the doubt. A loan might be justified if there’s evidence that an applicant is making an attempt to pay down defaults. The reverse – where defaults…
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