Lending strategy

…and how to fix them At last week’s ABCUL conference, NestEgg highlighted 7 key reasons why many credit unions struggle to grow their loan books. Drawing on insights from 250,000 loan applications worth £550 million (that were decisioned by NestEgg’s partner lenders since the last conference), the data shows that by avoiding these seven common…

Combining data from Open Banking, Credit Bureau and other data sources ensures broader, more accurate affordability assessment. Open Banking on its own can lead to an increased decline rate, even though credit risk might be reasonable. For example, an applicant with a bounced Direct Debit or Standing Order might be viewed as being more likely to…

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…

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…

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…