New feature: applicant demographics

NestEgg’s decision engine now includes applicant demographics.

Because most new borrowers join online, it’s harder than ever to get a full picture of an applicant. Furthermore, this problem is compounded when a lender is expanding into an unfamiliar area. As a result you don’t know much about the applicant. Nor the place where they live.

Applicant demographics provide insight into socio-economic status and related demographic information.

This feature uses government and credit bureau data to build up an accurate and rounded picture of a person and their surrounding neighbourhood.

Understanding lower income households

Applicant demographics provides information relating to socio-economic grouping, income, housing and economic activity. For example:

Most people living in this area belong to the socio-economic group, Family Value. There are many households with an income of between £10k and £20k. In the applicant’s postcode area these are predominantly Poorer Terraced Communities. The level of economic activity is low. On average, houses are worth 40% of the national average.

Family value households are a solid foundation for any credit union loan book. Borrowers in this socio-economic group make up 10% of all UK households. Households are headed by a single person with children and tend to be flats provided by social landlords.

Developing the loan portfolio

It’s also about the overall loan portfolio. Importantly, when considered as a whole, these data can help a responsible lender ensure that the loan book is reaching all parts of the target market.

For example, if you’re looking to sign up more, better off, borrowers, NestEgg can tell you how many borrowers of a certain type are within the loan portfolio. For example, below could be a target borrower for credit card consolidation or homeowner loans:

Most people living in this area belong to the socio-economic group, paying the mortgage. There are many households with an income of between £30k and £40k. In the applicant’s postcode area these are predominantly Affluent Young Professionals. The level of economic activity is very high. On average, houses are worth 110% of the national average.

Additionally, NestEgg can supply the postcodes for where these kinds of applicants live. Consequently, when used in marketing campaigns you’re more likely to receive the applications you are looking for.

Find out more. Book a demo.

 

About Adrian Davies

Adrian is a co-founder at NestEgg. He is an alternative finance and credit union expert with extensive experience of start-ups, business development, IT, Target Operating Models and regulatory compliance. Adrian has 20 years’ experience in the responsible lending sector, supporting credit unions with innovative ideas so they can grow and meet service user needs.