Metrics Monthly Q3 | 22

METRICS MONTHLY Duty Calls

Q3 /22 30 Sep 2022

Take cover Second charge surges Car finance speeds up

Lenders should be wary if their back office is not making the most optimal lending decisions, says David Wylie, in the light of upcoming Consumer Duty rules

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QUARTERLY EDITION

Customer stories We work with some of the best innovators in the industry. Click on a story to learn more.

Building societies

Consumer lending

“With the help of the LendingMetrics team, we have developed a solution that will allow us to focus on the details of the case and arrive at a decision quickly.” Darren Ditchburn, Chief Customer Officer at Darlington Building Society 

“LendingMetrics [is] helping us to quickly and reliably assess customer affordability in line with our strong focus on responsible lending.”



Car finance

Consumer lending

“We’ve had a lot of support from the LendingMetrics team to establish how we can get the most out of ADP and we’re looking forward to getting started with the solution.” Ken Doyle, Head of Credit Risk and Data Strategy at Specialist Motor Finance Ltd

“ADP fits in really well with what we’re trying to achieve – our customers are able to get a credit decision from us within seconds, whilst allowing us the capability to update rules and scorecards in real time.” Paul Hirst, Head of Credit Risk at Omni Capital





Consumer lending

Mortgages

“ADP is second to none for champion/ challenger testing. It has enabled us to confidently propose and execute changes in the knowledge that the objective is achievable.” Leon R Tunnicliff, Global Head of Credit Risk & Fraud at etika

“The partnership with LendingMetrics has allowed us to provide a scalable offering, increase our volume capability and improve both broker and consumer journeys, thus delivering more successful outcomes.” Buster Tolfree, Commercial Director of Mortgages at United Trust Bank





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Editor's letter

Contacts

Welcome to your third quarter's edition of Metrics Monthly As a long summer draws to a close, and the sweater weather season begins, the temperature may be turning cooler but events in the financial industry are certainly starting to heat up.

Call us +44 (0) 2394 211010 Email us info@lendingmetrics.com Visit our website www.lendingmetrics.com

Other remedies fall more in line with previous periods of financial hard - ship, including falling into arrears and defaulting on existing credit arrange- ments, and David Wylie considers the feasibility of each of these options in 'take cover' . Will households be able to weather the coming storm? Our headline piece this issue focuses on the impending regulatory changes, as the FCA's new Customer Duty stand- ards pave the way for stricter monitor- ing. Commercial Director David Wylie warns that lenders should be wary of the new regulations if their back office is not making the most optimal lending decisions in 'duty calls' . Amongst the commotion is some good news, though, and here at Lend- ingMetrics we are proud to have won Technology Partner of the Year for the third time in a row, and pleased to have been shortlisted for six new awards, which you can read about on page 07 . So wrap up warm, get cosy with a cup of tea and enjoy this latest issue of Metrics Monthly.

The latest market turmoil is putting us all on edge, and in a shocking turn of events we saw a huge number of mortgage deals being pulled from the market, which you can read about on page 06 . With the turning of the seasons also comes an inflation storm that will leave few households unscathed. An ever-escalating cost-of-living crisis is still putting considerable stress on people's finances, leaving households with no choice but to seek remedies that are, in some cases, pretty unor- thodox. Solutions like pledging to cancel direct debits as part of the Don't Pay UK movement may cause more problems than they solve, and we look at how the campaign has rapidly gained momentum in our 'in the news ' feature.

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Metrics Monthly | 03

In this issue

03 Editor's letter 04 In this issue 06 In the news

The latest industry news including nearly 1000 mortgage deals being pulled from the market and the rise of a civil disobedience movement which could have dire consequences.

06

08 Duty calls

Lenders should be wary if their back office is not making the most optimal lending decisions, says David Wylie, in the light of upcoming Consumer Duty rules.

10 Introducing: DeeJoop

The problem of ‘double counting’ consumer credit files when using data from more than one bureau has been solved thanks to the introduction of a new solution from LendingMetrics.

12 Take cover

11

David Wylie considers how households are going to weather the coming inflation storm.

08

04 | Metrics Monthly

Q3 | 2022

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14 Second charge surges

Rising interest rates and mortgage costs are leading to the growth in second charge mortgages, providing a new opportunity for lenders with the technological knowhow.

15 Duologi go live

Forward-thinking payment partner Duologi have successfully gone live with LendingMetrics' Auto Decision Platform (ADP).

18

16 Car finance speeds up

New innovation speeds motor finance applications.

18 Customer stories

Lender Loans 2 Go reflects on 5 years of success with ADP.

16

17

12

www.lendingmetrics.com

Metrics Monthly | 05

NEWS

In the news

Mortgage deals get pulled A number of banks and building soci- eties have withdrawn mortgage deals after a fall in the pound led to forecasts of another rise in interest rates.

the products we offer in light of market conditions.' According to Moneyfacts' finance expert Rachel Springall, 'the upheav- al in the mortgage market may cause frustration among both borrowers and brokers as they see deals disappear overnight.' The overnight reduction in deals comes alongside the news that house prices are expected to fall by a third, leading to a highly turbulent market and uncer- tainty of what will come. Only the most adaptive and responsive lenders will be able to react quickly to further changes on the horizon.

In just 24 hours, nearly 1000 mortgage deals were pulled, including by some of the biggest lenders like HSBC, Bank of Ireland, Santander, and Post Office Money. In a statement, Santander said: 'We will be removing our 60% and 85% loan to value products for new customers and increasing other rates for new and existing customers from 10pm this evening.' They added, 'customers who have already applied by this time will not be impacted. We continually review

Can't pay? Won't pay. Hundreds of thousands of people have joined a civil disobedience movement as energy prices in the UK rise once again.

The movement, Don't Pay UK, has almost 200,000 pledges, and claims to take action when the signatories reach 1 million. The original target of the campaign was for participants to cancel their energy bill direct debits on 1st October, when the price cap rise is due to take place. However, the mile- stone of 1 million was not reached so, instead, a national day of action will go ahead, with protests, rallies and stalls in many major cities. The campaign demands a reduction in energy bills to an affordable level, as many households struggle with the cost of living crisis. Organisers claim that the movement has already enacted positive change, with newly elected Prime Minister announcing a new cap of £2,500, which will be in place for the next two years.

With the movement still gaining momentum, debt and financial advi - sors are urging people to ensure they are fully informed about the risks of not paying their bills, including an impact on their credit score and increased long-term debt.

Those who cancel their direct debits could be put on a prepayment meter, charged extra or, in extreme cases, have their energy cut off altogeth- er. The government has condemned the movement, calling it 'highly irre- sponsible messaging', which will only increase prices for everyone else.

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LendingMetrics shortlisted for six new awards

Scottish Building Society adopts ADP LendingMetrics, the company behind the intelligent decisioning platform ADP is delighted to announce that it has been appointed by Scottish Building Society to deliver its credit decisioning solution.

erence agencies. Scottish Building Society decided to implement LendingMetrics’ ADP to support its approach to manual under- writing which is the cornerstone of its business. Commercial Director of LendingMet- rics, David Wylie, said: 'We are delighted that ADP has been chosen as the best solution by Scottish Building Society. They have been a pleasure to work with and we now look forward to delivering to them, complete autonomy over their decisioning logic.'

The society is set to use LendingMet- rics’ next-generation Auto Decision Platform (ADP) underwriting solution to support its intermediary business over the coming years. The multi-award-win- ning platform is a universally-integrated SaaS solution that handles real-time execution of credit reference, AML and affordability calls to the major credit ref-

LendingMetrics is proud to be announced as a finalist in no less than six different categories at the 2022 Credit & Collections Technol- ogy Awards: 1. Innovation in Credit 2. Credit Reference & Information solution 3. Credit Risk solution 4. Affordability Assessment solution 5. Technology Team of the Year 6. Best Use of Technology Now in its sixth year, the Credit & Collections Technology Awards will celebrate excellence and innovation in the UK credit and collections industry. Winners will be announced at the Credit & Col- lections Technology Awards cer- emony on Thursday 17 th Novem- ber at the prestigious event in Manchester. LendingMetrics previously won the ‘Credit Reference & Information Solution’ award in 2021 and ‘Credit Risk Solution’ award for their cut- ting-edge ADP solution four times in a row from 2017 through to 2020. View the full list of finalists for the 2022 awards here.

www.lendingmetrics.com

Metrics Monthly | 07

COMMENT

Duty calls Lenders should be wary if their back office is not making the most optimal lending decisions, says David Wylie, in the light of upcoming Consumer Duty rules.

At an industry event earlier this month I overheard someone call the FCA’s looming Consumer Duty standards ‘Treating Customers Fairly on steroids’. There can’t be many in the industry who won’t privately admit to thinking this is a fairly accurate characterisation of what is coming down the track. The industry has until July 2023 to implement what is a far stricter code on new and exist- ing products. Amongst its standout features is the requirement for regulated firms to con - sider ‘the needs, characteristics and objectives of customers (including those with characteristics of vulnerabil- ity) and how they behave, at every stage of the customer journey’.

As well as acting to deliver ‘good’ cus- tomer outcomes, firms will need ‘to understand and evidence whether those outcomes are being met’. The FCA wants Consumer Duty to ini- tiate a major shift in financial services, promoting competition and growth ‘based on high standards’. It says that, as Consumer Duty ‘raises the bar’ for the firms regulated, it will prevent con - sumer harm and will ‘make it easier for it to act quickly and assertively when we spot new problems’. You only have to ponder the wording of the above to realise where this might lead, particularly for those whose back offices cannot always ensure compli - ant lending.

I need not remind anyone that the ‘heads-you-win, tails-you-win’ Financial Ombudsman Service is still in place, where, for zero cost, consumers can lodge a mis-selling claim against a lender. However tenuous, there is still no disincentive for anyone to lodge a dubious or unfounded claim, and we know how badly that works for lenders and how profitable it can be for the claims-chasing industry. A number of high-profile providers, par - ticularly in the HCSTC end of the market, are no longer in business as a result of misjudging their compliance and being inundated with claims. Wonga was perhaps the most notable, but there have been many others over the years.

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So what we have with Consumer Duty amounts to what could, in time, be a terminal combination for some lenders: more wide ranging compliance require- ments that require the lenders to act at all times for the ‘good’ of the borrower, and a still very permissive compensa- tion regime. This, during a period of rising interest rates and escalating consumer stress, is not good news. With this in mind, lenders are going to need to be very clear and confident about the quality of their back-office decision making. If they are not, they have less than a year to put in place something that can straightforwardly evidence they have made every reason- able effort to meet the requirements of Consumer Duty. There will undoubtedly be those lenders who sleepwalk into trouble, carrying on as they were, in the hope that they can take on board the new rules without any risk to their viability, and reluctant to make the necessary investments in management resource. They will have no one to blame but themselves if they are targeted by claims chasing companies, which have proved to be very good at focusing their attention on businesses that they know

find it problematic evidencing quality compliance. Culpability will reside in the boardroom and nowhere else, because there is ‘plug-and-play’ technology available to ensure compliance to Consumer Duty. We all know how assisted underwriting technology can ensure rapid, optimal outcomes for both the lender and the borrower. Platforms such as Lending- Metrics’ Auto Decision Platform (ADP) have been quietly working in the back- ground for some years, using real-time data to generate the right decisions from both the consumer and credit risk perspective. There will not be so many, however, who appreciate that they have a welcome extra benefit. Finance providers no longer have to rely on patchy due dili- gence documentation - often amount- ing only to a disparate mix of proofs - when trying to remain compliant. Such platforms provide a robust deci- sion-making process, much less sus- ceptible to human error, that generates a digital audit trail able to stand up to the most intense scrutiny. All of the data elements that go towards making every decision are stored and a full audit kept of how they are used. The lender has a policy signed off by

their compliance team, which is in line with the latest regulations, and it is dili- gently enforced by technology. Decision making is 100% consistent and backed- up by a digital footprint. So, if a mis-sell- ing claim is made, a lender has a quickly generated justification for its decision to present in its defence to a regulator. Consumer Duty is yet another big step away from caveat emptor, or buyer beware, towards a ‘seller beware’ regime, where providers that fail to have a 360-degree view of the applicant, pay a penalty. This direction of travel is going to make platforms such as ADP indispensable for those that want to remain in busi- ness and profitable.

Above: LendingMetrics' Commercial Director David Wylie

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Metrics Monthly | 09

VIDEO

Introducing: DeeJoop The problem of ‘double counting’ consumer credit files when using data from more than one bureau has been solved thanks to the introduction of a new solution from LendingMetrics.

Since 2010, LendingMetrics has been innovating and leading the market in credit risk decisioning software and data solutions. We have helped countless lenders to create and refine their credit risk strate - gies and we have done so with visibility

across the CRA spectrum. This places LendingMetrics in the unique position to identify challenges faced by our customers and to develop solutions to those challenges. Our teams of analysts and architects have, since around mid 2020, been

researching and designing the solution to the multi-bureau conundrum and we are delighted to introduce the result, DeeJoop. Find out more about the innovative new solution by watching our brand new video below!

10 | Metrics Monthly

Q3 | 2022

COMMENT

Take cover

David Wylie considers how households are going to weather the coming inflation storm. The escalating cost-of-living crisis is undoubtedly going to put considerable stress on household finances. I need not repeat all the figures here, but the most alarming is easily the energy price cap. For a typical household, the price cap - already increased to £1,971 on April 1 - will rise again on October 1 to the new government’s £2,500 ceiling. It goes without saying that the impact of this is going to be dramatic, given that energy will not be the only thing people will be paying more for. Add into the mix shop prices, transport, council tax and water bills, which are all set to rise in line with inflation. Also, consid - er the fact that this is a ‘typical’ energy bill, not an average or even median bill. There will be many for whom this figure significantly undercuts reality. Faced with such ballooning outgoings, what are households going to do? If we look to previous periods of inflation and financial hardship, we find that they are likely to turn to one or more of four

key remedies: cutting back on spend- ing; falling into arrears with household bills; more borrowing; and defaulting on existing credit arrangements. Thankfully, for perhaps the majority of households these remedies will likely not be called on. For them, the inflation shock will be uncomfortable but beara- ble. The top half of UK households have a disposable income of more than £31k and, unless heavily indebted, this will be sufficient to weather the storm. "Faced with such balloon- ing outgoings, what are households going to do?" It is the remaining 50% of homes, and specifically those in the bottom 20% with a disposable income of less than £19,500, who will likely be increasing - ly turning to one or more of these four options over the coming months. In contrast to previous downturns, however, they may not prove to be as helpful as before. Cutting back on spending - tradition- ally the first target for consumers - is going to be trickier this time round. Disposable incomes have been shrink-

ing. There was a record 18% drop in average household disposable income in June 2022 compared to the same month in 2021, according to the Asda Income Tracker collated by the Centre for Business and Economic Research. After paying tax and essential bills, the average household had £200 a week left – a figure that has fallen for eight consecutive months to a level not seen since December 2017. At this compara- tively low level, discretionary spending on items such as eating-out and shop- ping will come under the spotlight as well as gym memberships and stream- ing services. But if option one is not enough, more households are going to consider falling into arrears on household bills. Once those with stiff civil penalties for nonpayment such as Council Tax are discounted, they may take the decision to cancel their direct debits. Symptomat- ic of the way some may have changed their view of taking such action is Don’t Pay UK, which we covered earlier in this issue. For many, the third option – borrowing - is not going to be so easily tapped. Their ability to cushion the shock with credit could well be limited.

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Unlike previous downturns, the lending environment is markedly different. A whole raft of consumer safeguarding regulation has been enacted, the latest being Consumer Duty. "A whole raft of consumer safeguarding regulation has been enacted, the latest being Consumer Duty." Many simply will not be able to afford to borrow and will fail the more rigorous affordability assessments. They are already significantly indebted: UK con - sumers owed £1,805.7 billion at the end of June 2022, up by £62.5 billion from £1,743.2 billion at the end of June 2021.

That is an extra £1,181.21 per UK adult over the year. The average total debt per household, including mortgages, was £64,970. What’s more, credit card spending seems to be taking off. We can’t forget that regulation in the wake of the changing economic land- scape and looming defaults will mean lenders’ risk appetite may well have changed. Providers might undertake a ‘flight to quality’, especially given the negative cost associated with ‘mis-selling’. The last resort option of defaulting on existing finance may well become the only option for a significantly proportion of lower-income households, despite the negative consequences in terms of credit profile and future borrowing prospects.

So far there is little sign of this hap- pening, with consumer debt write-offs and repossessions not significantly changed on previous years, but with mortgage rates now rising on the back of other inflation, it may not be long before we see the last of the four options rise steeply. The extent to which this will happen is going to depend largely on the success of the energy ‘price freeze’ and overall government efforts to smooth the cost- of-living hike over the two-year cycle that the Bank of England is predicting. Only time will tell how well equipped households are to weather the storm, and if they will still be standing on the other side.

www.lendingmetrics.com

Metrics Monthly | 13

COMMENT

Second charge surges

Rising interest rates and mortgage costs are leading to the growth in second charge mortgages, providing a new opportunity for lenders with the technological knowhow, says David Wylie. The mortgage market has become a lot more expensive for borrowers since the start of the year. The cost of the average two-year fixed rate is now three times higher than it was last October, according to figures from L&C Mortgages. Even worse for those on variable trackers, who have been hit by a succession of hikes as the Bank of England has raised rates in an effort to stem inflation, now predicted to hit 13% by the beginning of next year. These dramatic rises in interest costs are already having an impact on the shape of the borrowing market, most notably in the area of remortgages, and specifically second charge mortgages. It seems that many borrowers are baulking at the idea that they have to remortgage to a much higher rate than the one they already have, and are increasingly opting for second charge secured loans. According to the Finance and Leasing Association (FLA), the value of new second charge business totalled £127m in April, a 54% increase compared to the same time last year, and new agree- ments came to 8,520, a 49% uplift as homeowners have looked to capital- ise on rising property equity without having to take on board an expensive remortgage. The boost to the second charge market has provided an opportunity for rapid growth at specialist lenders who, unlike

during previous demand surges, have been able to utilise the latest underwrit- ing technology. Plug-and-play platforms, such as LendingMetrics’ Auto Decision Plat- form (ADP) , have meant lenders are in a position to automate much of the underwriting process without the need for an IT department. They are able to screen individuals in milliseconds rather than hours or days, with real time Open Banking data that is interrogated by sophisticated algorithms. Some lenders have taken this process one step further by using the new DeeJoop technology from Lending- Metrics. By using distilled and normal- ised data from multiple credit bureaus, patchy, incomplete or ‘thin’ files, which would previously derail applications, are no longer an obstacle to lending. The upshot of such technological advances is that lenders can maximise every lead that comes their way, without compromising the quality of their pipe- line, or risking compliance issues down the road.

Automation has additionally put them in the enviable position of scaling-up their businesses quickly in the face of the sudden blip in second charge demand. The ceiling on growth in the form of the underwriting department’s headcount that used to apply is no longer there. This technology is turbocharging the second charge market, which is now a much faster, more streamlined way to raise capital than remortgaging. Going forwards, lenders have the systems in place to manage their loan books in a far more effective way than they have done in the recent past. By accessing data feeds authorised by the borrower they will be able to automati- cally track spending habits and be fore- warned when borrowers are on course to miss payments. A single pre-emptive telephone call while the borrower is still able to meet their commitments can prevent the borrower falling into arrears. With such knowhow in place, the pros- pect of continued, profitable growth in the second charge sector looks assured.

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NEWS

Duologi go live

Related articles

Scottish Building Society adopts ADP to announce that it has been appointed by Scottish Building Society to deliver its credit decisioning solution. LendingMetrics is delighted

Read now

Car finance speeds up Processing motor finance applica - tions is set to become faster and more efficient, following the launch of new technology by SaaS provider LendingMetrics.

Forward-thinking payment partner Duologi have successfully gone live with LendingMetrics' Auto

Decision Platform (ADP). Duologi, who specialise in point-of- sale payment solutions, such as for home improvements or retail pur- chases, will be utilising LendingMet- rics' multi-award-winning solution to both assess applicants and onboard merchants. Duologi had previously outsourced the build of an engine to an exter- nal IT company, which meant it was hard-coded and the company had limited control over changes. They wanted to bring decisioning in-house and were looking to streamline the process. With the support of LendingMetrics' expert team of analysts, Duologi have built two engines: one to process

Take me there

consumer loan applicants by running affordability checks and the other to onboard merchants who require Duologi to act as underwriters for their finance applications. The latter of these is a unique decision engine which runs company checks on mer- chants, and is integrated directly with the FCA to make sure the company is able to broker the decisions on behalf of the consumer. Duologi's future plans include expand- ing their use of ADP, having seen success with it when processing both merchants as well as end consum- ers, and aim to continue to use their industry-led digital innovation mindset to empower businesses in specialist sectors.

Duty calls

Lenders should be wary if their back office is not making the most optimal lending decisions, says David Wylie, in the light of upcoming Consumer Duty rules.

Find out more

www.lendingmetrics.com

Metrics Monthly | 15

NEWS

Car finance speeds up New innovation speeds motor finance applications

Processing motor finance applica - tions is set to become faster and more efficient, following the launch of new technology by SaaS provider LendingMetrics. Applications for car finance often benefit from multiple credit reference data checks to increase the visibility of an applicant’s financial situation and improve application conversations. But, this can lead to ‘double counting’ consumer credit files when using more than one bureau. LendingMetrics’ DeeJoop platform distills credit risk data from multiple bureaus to produce a ‘net’ credit file for consumers. Using proprietary algo- rithms, it interrogates the large quantity of data contained in multiple Credit Ref- erence Agency (CRA) files and removes double-counted credit commitments, defaults, mortgages, CCJs and other duplicated elements of a consumer’s credit file. The proprietary solution is set to improve

car finance application processes by producing much higher quality afforda- bility assessments, ensuring finance providers are treating customers fairly. David Wylie, Commercial Director of LendingMetrics, said: ‘The speed of getting a high-quality decision is criti- cal for dealers when locking in a pros- pect. DeeJoop provides what they have been waiting for: something that deliv- ers rapid higher match rates and better affordability assessments though a true multi-bureau solution.’ The platform has been in development since mid-2020 by LendingMetrics’ team of credit risk analysts, architects and developers, who have drawn on the company’s extensive lending technolo- gy expertise. The solution evolved from the increase in regulation across the industry, leading to finance providers needing to carry out more effective affordability and eKYC assessments on applicants. For those with ‘thin’ credit files, lenders

can run multiple bureau searches, but this can be problematic given the need to handle different data formats and heavy data duplication, as well as unpredictable CRA coverage and occa- sional outages. The new DeeJoop technology enables providers to efficiently run these mul - ti-bureau searches and avoid wasted opportunities to lend to otherwise per- fectly suitable borrowers. Mr Wylie added: ‘Over the years we have helped motor finance providers create and refine their credit risk strat - egies and have done so with visibility across the CRA spectrum. This places us in the unique position to identify the challenges faced by our customers and to develop solutions to overcome those challenges. Against the backdrop of the evolving regulatory landscape, DeeJoop ensures better credit decisioning whilst seamlessly on-boarding more custom- ers in an ever more competitive car retail environment.’

16 | Metrics Monthly

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Proud winners of a fourth Consumer Credit Award

LendingMetrics is a proud winner of 'Technology Partner of the Year' at the 2022 Consumer Credit Awards, marking the fourth consecutive win at the awards, and the third win of the esteemed title. The awards, run by Smart Money People, are wholly voted for by customers, putting them at the heart of the industry. LendingMetrics required a large number of votes - from consumers and partners alike - to be crowned winners of the highly revered accolade on 8th Septem- ber 2022. LendingMetrics prides itself in deliv- ering excellent customer service and

putting clients' needs at the forefront of their product development plans, so walking away victorious was a huge achievement. Commenting on the news, Commercial Director David Wylie said: "We're delight- ed to have won Technology Partner of the Year for the third time in a row as it shows the effort and dedication we put into good customer service has paid off. I'd like to personally thank all of our clients and partners who voted for us!” To view the full list of the 2022 winners, click here.

www.lendingmetrics.com

Metrics Monthly | 17

CASE STUDY

Customer stories Lender Loans 2 Go reflects on 5 years of success with ADP

Loans 2 Go are an industry leader in the provision of alternative, affordable personal loans. They provide loans with flexible terms to those seeking to find an alternative to more traditional forms of credit, prioritising treating their cus- tomers fairly and providing them with the information and assistance they need throughout the duration of their loan agreement. Traditionally a logbook lender, Loans 2 Go expanded to over 85 branches in the UK before realising that customers needed access to their loans quicker and therefore took the decision to move online. Loans 2 Go chose to partner with SaaS provider LendingMetrics after interview-

ing a number of companies in the sector offering similar services. They opted to implement the multi-award-winning Auto Decision Platform (ADP) to be able to adjust their credit risk appetite as they developed. Five years on, Loans 2 Go are success- fully utilising the platform to adjust their credit decisions in real time, and using enhanced multi-bureau data for affordability checks to ensure the fair treatment of customers. One of Loans 2 Go’s driving factors to contract with LendingMetrics was their hands on approach from day one. Now, the service is stronger than ever, with the FinTech provider supporting the lender as they continue to grow and

develop. Martin Rix, Chief Commercial Officer at Loans 2 Go said: 'I would highly recommend LendingMetrics, whether somebody’s venturing for the first time online, and needs hands on support and the experience that comes with it, or whether you’re an established lender that’s looking for perhaps a more bou- tique style approach.' During the pandemic, in 2020-21, the lender was able to use the testing facil- ity within ADP to effectively assess credit risk as events developed. They ran retro analyses in order to make sure they we were ahead of the risk before the risk happened.

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Being able to adjust scorecards accord- ing to a customer’s changing circum- stances remained essential through 2022, with rising fuel costs, high utility prices and the cost of living crisis having a large impact on affordability. With the continued assistance from LendingMetrics, the lender was able to use ADP to assess risk and adjust appropriately to ensure they were lending both responsibly and fairly.

LendingMetrics are a strategic partner to the success of Loans 2 Go, and our continued growth has LendingMetrics at the core of it. Martin Rix Chief Commercial Officer at Loans 2 Go “ ”

Loans 2 Go: 5 years on Find out more about Loans 2 Go's experi- ence with Auto Decision Platform as CCO Martin Rix reflects on 5 years of success with LendingMetrics. Watch the brand new video now!

Watch it now!

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Metrics Monthly | 19

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