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Credit Summit: Open Banking is powering next-generation tools for lenders

Summing up our key points from the Credit Summit, this blog explores how Open Banking is powering modern lending. With insights from Admiral and CarFinance 247.

by Credit Kudos12 July 2021

At the Credit Summit, our founder Freddy was in the studio to discuss how Open Banking is powering modern lending with industry experts; Jon Timmis from 247 Money and Nicholas Jones from Admiral Financial Services. That same day, we also announced our newest technology, Assembly, our Open Banking decision engine. With Admiral and 247 Money having already implemented Assembly pre-launch date, we were excited to speak with them about their Open Banking strategies, and the impact this new technology was having on their business.

Open Banking is powering modern lending

A key theme was evident throughout the third day of the Credit Summit; Open Banking is delivering the means to build next-gen tools for lenders. Open Banking data offers an incredible opportunity to predict credit risk more accurately and for more people. Significant changes in consumer profiles are readily driving the need for a change in the models of lending. Now, more than ever, lenders need to see beyond a single point-in-time valuation of a customer and instead need access to a real-time view. With the right tools, lenders can now leverage transaction data - containing thousands of insights into an individual’s financial behaviour - to enhance their affordability and risk assessments.

Our new technology, Assembly, was built with this in mind. Assembly enables lenders to make better decisions using Open Banking insights with minimal risk and outlay. With Assembly, you can:

  • Create, deploy and adjust automated credit decisions with minimal or no technical integration
  • Integrate these decisions into your customer journey or LMS for real-time decisioning with one single integration point
  • Forecast the impact of new policies and adjustments on key metrics

Luke Boardhurst, host of the Credit Summit and Credit Strategy CEO commented on Assembly’s potential to change the dynamic of credit risk within a lending business, noting its ability to allow credit risk teams to enable acceleration of the business, not the brakes, as they are more commonly perceived to do so.

“We always say credit risk..should be an enabler amongst lenders, but quite often is viewed as the brake rather than the accelerator but this [Assembly] is a chance for credit risk to put itself out there as being part of the acceleration of the business.”

How is Assembly powering better decisions for lenders?

247 Money was one of the first to adopt Assembly to help serve their declined population of approximately 30,000 applicants per month. Using Assembly, 247 Money is now able to address this audience as the significant manual load of underwriting has been removed. With Assembly, they now have the ability to make instant risk assessments on potential customers who have limited credit file information.

Jon Timmis, Head of Credit Risk for 247 Money, noted that the flexibility the team had to set and amend rules allowed them to react quickly to market changes and balance risk across their portfolio.

With the application of Assembly, 247 Money expects; greater efficiency in their full-time team without increasing underwriter resources, a better customer journey for their clients, and to be able to serve 10% of their current declined population in the future.

Admiral Financial Services were also amongst the first adopters of Assembly, leveraging it to further automate underwriting, enabling them to reduce the time and cost of assessing individuals manually. Nick Jones commented that the operational efficiencies were a core benefit and that it would also enable Admiral Financial Services to extend their services to more people thanks to the more comprehensive picture of affordability that system provides.

Interested in how Assembly can be leveraged to automate sophisticated affordability and vulnerability checks? You can download our brochure with sample Affordability and Vulnerability policy rules here or visit our website for more information.

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