Lending Risk Analysis
Need to know if your customer can afford the product they’re applying for? Credit Sense Affordability can help you understand your customer’s income and expenses and confirm their account details, safely and easily.
When assessing an application for finance – or any other product or service that requires the customer to make payments over time, understanding whether the customer can afford it is a fundamental step in the assessment process. An affordability or serviceability assessment determines the customer’s ability to afford their ongoing payment obligations if they are approved for your loan product or service.
Credit Sense Affordability solves this problem. It’s a comprehensive affordability solution that delivers a consistent view of a customer’s income, financial expenses, essential living expenses and discretionary expenses.
Financial expenses are any type of loan the customer is repaying. We identify the financial expenses your customer is currently paying and use proprietary trend modelling to establish, and reliably report the customer’s financial expenses at an interval that meets your system requirements.
Discretionary expenses are expenses that a customer can choose to reduce or eliminate. Expenses that are not identified as financial or essential expenses are classified as discretionary.
Essential expenses are those essential to a person living and participating in modern society. If your business relies on established classifications of consumer spend like the Household Expenditure Measure (HEM) in Australia, or the New Zealand Household Expenditure Classification (NZHEC, based on the Statistics NZ Household Economic Survey), you’ll be glad to know that our classifications align closely with these.
When assessing expenses we are trying to determine the regular, ongoing expenses the customer is likely to experience. Identifying outliers in the data, e.g., once-off large expenses can help assessors quickly and easily understand the customers true financial position. We include outlier flags on unusual transactions in expense data to make it easy for your credit assessors to identify them, review and confirm with the customer.
Our core analysis uses robust trend modelling to quantify customer income and expenses, however, customer assessment processes are unique and often require custom insights to answer specific business risk questions.
Manually calculating custom insights is slow and introduces risk. If you can describe the calculation and the data exists in the report, we can automate it for you. This reduces the time it takes to complete an assessment and improves consistency across the business.
We provide over 500 custom insights including positive and negative behavioural flags, customised essential and discretionary spend, income insights and much, much more.
ASIC’s Regulatory Guide 209 (RG209) in Australia and the Credit Contracts and Consumer Finance Amendment Regulations 2020 (CCCFA) in New Zealand detail responsible lending obligations in those countries. They provide guidance on reasonable inquiry and verification steps for income and expense identification and verification. Credit Sense’s customer affordability profiles are designed to assist lenders quickly, easily and consistently comply with these requirements.
Loan origination automation systems increase consistency of process and support credit assessment teams. Loan decisioning software needs accurate and consistent data to produce reliable lending risk assessments and improve automated loan decisioning outcomes. Automating your affordability assessment processes with Credit Sense’s customer affordability solution supports these systems and credit assessment teams to achieve the best and fastest outcomes.
What’s In The Box?
Credit Sense Affordability includes:
Affordability Profile Report
A report tailored to quantify the customer’s income and expenses in your choice of formats (HTML, XML or JSON) that includes, for all accounts on the customer’s internet banking profile:
Get access to a range of identity and supporting documents as part of the Credit Sense customer journey, improving customer satisfaction and speed.
Access to your own Account Manager and Technical Account Manager to help with everything from getting started with our no-integration solution, right through to integrating the customer journey in your online application and automating data delivery.
Fast, secure and easy to use customer journey.
Access to our fully featured client dashboard.
User training for your staff.
Credit Sense is ISO 27001 certified by certification body Lloyds Register including all of our systems, assets, people and processes involved in supporting and maintaining our platform and its information security.
Fast real-time customer affordability profiles
Credit Sense Affordability profiles solve the problem and give you the answer, rather than providing analysis that still leaves you with the problem. Verify your customer’s income, essential, financial and discretionary expenses instantly, reducing onboarding time and improving your compliance and lending risk assessment.
Improve customer satisfaction
Delight your customers with our accessible, fast and beautiful customer journey.
Affordability solutions Australia, New Zealand and Canada
Deploy a consistent affordability assessment process across all regions we service.
Enhance your consumer loan automation system
Get the most from your loan decisioning software and improve the accuracy of your automated loan decisioning with consistent and reliable customer affordability data.
Improve customer satisfaction in the lending, fintech, telco, utilities, financial and professional services spaces. Onboard customers faster, enhance your responsible lending activities and improve your risk assessment with a reliable automated customer affordability assessment solution.
Assess new customers faster than ever with consistent and easy to use affordability profiles. Determine the right lender for your customers with confidence and improve the consistency of your affordability assessment process while delighting customers with an experience they know and love.
Telcos, Utilities and services using direct debits.
Confirm your customers have the capacity to afford the ongoing payment obligations of your product. Manage your risk of fraud and loss by independently verifying your customer’s income, expenses and financial position as part of your onboarding process. Also, if your customers pay via direct debit, verify their account details and automatically identify the best day of the week/fortnight/month to set their debit for.
Real estate rental management.
Manage risk more effectively when onboarding new, and managing existing rental leases. Independently verify tenant information, account details, affordability and the best day of the week/fortnight/month to set for rent payment in one quick and easy step when you establish a new property lease.
Financial services providers.
Businesses that provide loans, investment, share trading or other boutique financial services often need to understand their customer’s income, expenses and financial position. Independently verify your customer’s account details, balances and understand their income and regular expenses in one simple, real-time process.