Lending strategy
Drive lower risk loan applications with soft credit checks
For borrowers who are conscious of their credit scores, soft credit checks offer a practical and appealing solution. This process allows individuals to determine their likelihood of loan approval without negatively impacting their credit score (unlike hard credit checks). This is particularly beneficial for those with variable-rate financial products, such as mortgages, where even a slight…
Read MoreLending trends 2024
Over the past year there has been a shift in lending risk within the credit union sector. In 2023, credit unions in Great Britain approved nearly 6 out of 10 loan applications. However, as of 31 August 2024, this approval rate has dropped, despite applicants credit risk being lower. What are these lending trends telling…
Read MoreHelping responsible lenders grow their loan books in difficult times
It’s hard to remember a time when lending was this difficult. One pressure is the impact as 1.5m people leave fixed rate mortgages this year. They’ll spend an additional £19bn on mortgage repayments in 2024. Currently with higher credit scores, these ‘near-prime’ borrowers have been a priority for credit unions looking to balance loan books…
Read MoreBetter referral for declined applicants
At the beginning of this year’s Debt Awareness Week, it was reported that 13% of adults had missed three or more credit or bill payments in the last six months. Credit unions are used to seeing this. For example, between 1 January and 18 March 2023, 29% of borrowers assessed by NestEgg’s Decision Engine had…
Read MoreData driven decisions
As we head from London to the North West to Manchester for the ABCUL conference, NestEgg has compared the data from lending decisions made in these areas. This is to help credit unions make data driven decisions. Overall, lending risk in the North West is higher than the South East (including London). Despite higher incomes…
Read MoreChoosing NestEgg for Open Banking
Open Banking has revolutionised credit assessment. It provides more up to date information. Open Banking reveals spending patterns that are absent from credit data. However, Open Banking can only offer proxies. You can’t be certain that a bounced direct debit means that the loan repayment will be missed. Open Banking can’t tell you overall balances…
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