Meeting the challenge of declined credit

The latest Financial Lives survey from the Financial Conduct Authority (FCA) reveals a troubling statistic: 3.2 million UK adults have been declined credit in the past two years. That’s over one in five of the population locked out of mainstream financial services at a time when the cost of living remains high and financial resilience is low.

These 3.2 million are just the visible part of a much deeper issue. An additional 5.5 million adults have avoided applying for credit altogether due to fear of rejection or worrying that a loan would be unaffordable.

A platform designed for inclusion

NestEgg’s award-winning Broker Platform provides individuals with access to credit unions across the UK. Our Partner lenders consistently show high accept rates for applications that have been declined credit by banks and other financial institutions.

More importantly, our technology allows for fine-tuned control. Lenders can configure risk appetite settings to shape future accept or decline rates based on specific borrower characteristics, making the system adaptable, strategic and inclusive.

At the point of referral, NestEgg’s tips can offer reassurance to those hesitant to apply. Rather than fearing another rejection, borrowers are given access to a network of ethical lenders, backed by support services such as money advice and income maximisation tools.

Lending where it’s needed most

NestEgg works in partnership with dozens of credit unions across the UK who are supporting people in financial difficulty.

The Financial Lives survey shows that 72% of unemployed individuals and 73% of people with long-term illnesses are significantly less likely to hold credit products. This highlights deep inaccessibility in the system.

NestEgg is changing the narrative. While traditional lenders can sometimes shut out those facing health or employment challenges, our platform is different. In fact, 1 in 5 of our applicants lives with a long-term illness or disability. What’s more, unemployed individuals using NestEgg are just as likely to be approved for loans as those in full-time work. Proving that access to credit can be a reality for those using our platform.

Reducing harmful reliance on high-cost credit

The FCA survey also highlighted how people on incomes under £15,000 are disproportionately driven toward high-cost lending. In fact, 60% of those declined for credit end up with higher-interest products.

NestEgg is breaking this cycle. For example, 30% of accepted applicants earn under £15,000 per year. That’s clear evidence that NestEgg’s platform is actively serving low-income households. Referring a £500 loan to a credit union can save borrowers up to £325 compared to a high-cost short-term loan. Importantly, a significant portion of those savings is often deposited with credit unions through Save as You Borrow schemes.

Proactively supporting vulnerable borrowers

The FCA also found that 65% of high-cost credit users show signs of vulnerability. Through our involvement in FinTech Scotland’s Consumer Duty Challenge, NestEgg has taken real steps forward in identifying and supporting these borrowers. Our platform now incorporates tools to detect vulnerability as a loan application is submitted, enabling more appropriate responses and support.

Configurable, scalable, live

NestEgg’s Broker Platform is already helping lenders meet the requirements of Consumer Duty and build inclusive lending models. It also enables lenders to respond directly to the needs highlighted in the FCA’s Financial Lives survey.

We’re inviting financial institutions, banks, housing associations, advice providers and more to talk to us.

With a highly configurable referral system for declined applications and a strong focus on supporting vulnerable borrowers. Contact us to find out more.