Lending Strategy
Decline to accept
Credit unions save low income borrowers, in Great Britain, £120m in excess interest every year. NestEgg users generate a ‘social dividend’ of £200 saved interest, each working hour. However, 40% of loans are declined. As a result, every year 100,000 vulnerable applicants are turned away by affordable credit providers. Research into declined pay day loan…
Read MoreLending trends since lockdown
On 10 June our webinar looked at lending trends since lockdown. We wanted to find out how Coronavirus affects the financial health of credit union borrowers. Responsible lenders can adjust their lending to this new reality. At the end of the webinar, and this article, we share two risk-based personas. These are example types of…
Read MoreCredit card consolidation: a lower risk alternative?
Consolidation loans are tempting. They help members cut the interest rates they are paying. Monthly repayments can be reduced. The convenience of one combined monthly payment helps people budget better. But they are not without risk. One-off credit card consolidation may be a better option. Consolidation loans can be relatively large. Ideally all creditors need…
Read MoreOpen Banking for People and Planet
On Thursday 20th June NestEgg co-hosts a Finance Innovation Lab community event; Open Banking for People and Planet. Kicking off at 7pm, the event’s at the Google Start-up Campus. We’ll look at how Open Banking improves loan decisions and how this can be done at scale. Automated decisions can result in fair outcomes. Decision engines…
Read MoreNEW FEATURE: Improved Lending Analytics
Good data means better loan decisions. With 100s of data points flowing through our software, the potential for credit unions to strategise lending is unprecedented. Because of this we’ve enhanced our lending analytics. Additionally, they’re provided as standard with our Decision Engine. Lenders can take a step back from individual loan decisions and consider the…
Read MoreLending insights: County Court Judgments
Anonymised data helps us better understand the risk profile of credit union borrowers. Information on topics such as County Court Judgments (CCJs) benefits credit unions because they can benchmark applications, understanding decisions against country-wide trends. The data set on CCJs is relatively small and so this information should be viewed as an indicator of trends…
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