NestEgg is now regulated by the Financial Conduct Authority as a provider of credit information services.
This means we can now provide tips to loan applicants on how to improve their chances of being accepted for a loan.
Decline to accept in action!
How does it work?
- An applicant wants to borrow. But they’re unsure they qualify. Additionally, someone may have been declined for loan.
- Both are referred to NestEgg.
- Borrowers connect their credit profile and bank account to the (upcoming) NestEgg app.
- NestEgg identifies areas to work on. Tips are provided e.g. improving a credit score, dealing with missed payments etc.
- Borrowers who act on these tips, will improve their credit profile and financial health over time.
- Borrowers then meet the Decision Engine accept criteria for a chosen lender. Loan providers receive a quality referral.
Will it work?
We think so. Of course, now’s the time to prove it. This is the purpose of our participation in Cohort 6 of the FCA Sandbox.
Verifiable, repeatable experiments that deliver tangible improvements to financial health.
As a result, accept rates for loans will improve. Because of this, bad rates will fall. Consquently, responsible lenders profitability improves.
What about Covid-19?
NestEgg applied for regulatory permission before Coronavirus. However, our approach supports people affected by Covid-19.
Importantly, our five point Covid-19 recovery plan is the same set of ‘job steps’ required to improve financial health:
Now NestEgg is regulated by the Financial Conduct Authority, we will be providing this service to responsible lenders.
Get in touch to find out more.
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