Lending strategy
Credit 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…
Read MoreWhy Traditional Financial Statements Don’t Work
Money comes in. Money goes out. Calculating disposable income is hard given our tendency to spend what we earn. The Office of National Statistics has found 3 in 10 households break even at best. In many of these cases there’s a budget deficit. Citizens Advice report that 5m British adults have less than £10 left…
Read MoreHow Being Nice can Skew Risk Appetite
We’re nice people in the credit union movement. We often ‘err’ on the side of accepting loans, especially where borrowing will really help members out of a tricky situation. This can knock our risk appetite out of line with expectations. In such circumstances bad debt costs run over budget. Members may want (and intend) to…
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