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
Q3 | 2022
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