Lending strategy

Selecting a fintech partner for credit unions is more important than ever. As expectations for digital experiences continue to increase, there has never been a more opportune time for credit unions to consider partnering with a fintech company.  Credit unions are often behind the competition, because their systems are unable to keep up with rapid…

NestEgg has been using Open Banking to assist with credit decisioning for more than five years. At the World Credit Union Conference 2023 (WCUC), we talked about how open banking can be used to make more inclusive lending decisions.   Open banking data is also useful when used in aggregate. In other words, analysing data from…

NestEgg is bringing together open banking and credit data. To help us we’ve secured a grant from Innovate UK’s Transformative Technologies competition. As a result, we’ll be developing new features, combining open banking and credit data for rounder, more complete affordability decisions.  It’s hard to get a fair priced loan People who’ve been through a…

Last week we looked at how smaller loans aren’t always high risk, now we’ll examine loan applications by credit profile. Table 1 shows results from 50,000 applications to community credit unions in Great Britain (GB), sorted by credit rating. Table 2 shows 5,000 applications to community credit unions in Northern Ireland (NI). Applications by credit profile…

Credit unions take note: smaller loans aren’t always high risk. Nor are they always for people who are out of work. For this analysis, we looked at the last six months’ of data from over £500m +  of loans assessed by NestEgg’s decision engine. Firstly, one third of all loans to community credit unions came…

How do we ensure better lending during the cost of living crisis? Accept rates for credit union loans have fallen significantly over the last year. This can be partly explained by the increasing indebtedness of borrowers. The average non-mortgage debt of credit union applicants rose by 14% in the year ending February 2023. However, applicant…