Open Banking for credit unions provides an opportunity to educate members and improve credit decisions. Because Open Banking lets lenders view applicants' bank transactions there's no need for paper bank statements. But with data scandals an ever-present threat, this information should be used … Read More about Making Open Banking Work For The Benefit Of Your Members
Satsuma Goes Pear-Shaped (Slick Customer Experience Isn’t Enough)
Ten years ago I ran a focus group of low income borrowers to understand the impact the Government’s Growth Fund initiative had on credit union members. What suprised me was how much borrowers were willing to pay for convenience of service. I’d assumed that lower interest rates and weekly payments … Read More about Satsuma Goes Pear-Shaped (Slick Customer Experience Isn’t Enough)
Why Spending More On Bad Debt Can Be Profitable
Sticking to your budget for bad debt isn’t always the best course of action. What if spending another 1% on write offs, brought in more income than the extra bad debt cost? Using credit scoring to manage a loan portfolio Credit scoring enables lenders to estimate the bad rate based on a score. … Read More about Why Spending More On Bad Debt Can Be Profitable
Good Loan Applicants Are Being Turned Away
4.5 million people were declined for credit last year. Many for good reason; 1/4 of applicants were in financial difficulty. 10% were ‘just surviving’. However 42% were what the Financial Conduct Authority calls ‘financially resilient’. These applicants have savings, insurance and a pension. 7% had … Read More about Good Loan Applicants Are Being Turned Away
Why You Need To Be Concerned About Affordability
Despite tightening up regulations that protect consumers from over-indebtedness, insolvencies for 18 to 34 year olds are up by one third and the Bank of England predicts lenders writing off another £30bn of loans.[1] Good conduct requires lenders to take into account the impact a loan would have on … Read More about Why You Need To Be Concerned About Affordability