Metrics Monthly | November 2019 | UK Edition

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Metrics M onthly

UK EDITION November 2019

In this issue WE’VE GOT THE POWER Who’s on Credit Connect’s inaugural company Power List?

In this issue Welcome Page 03

New starters Page 04

Lending Awards Results Page 05

In the news Page 06

We’ve got the power Page 08

Affordable credit challenge Page 10

Training isn’t an afterthought Page 12

Case study Page 14

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November 2019 | UK Edition



November has been an exciting month for us at LendingMetrics, and - ahead of the countdown to Christmas - we’re also counting down, with three new starters, two new awards and one exciting announcement. At LendingMetrics, we’re not letting the cold snap we’re feeling get us down this month, as this issue of Metrics Monthly is filled with exciting news and important bulletins. Our company news includes the announcement of three new team members and the results of the Lending Awards hosted by Credit Strategy. Despite the upcoming election and uncertainty over Brexit, we’re pleased to see that the UK Fintech industry is breaking investment records, which we

cover in our piece on page 06 . We’re also asking “is it too little too late?” for Australian bank Westpac following the recent allegations from Austrac. This month Credit Connect announced their inaugural Power List, including a top 20 Premier companies, who we list on page 08 , and in which you may see a familiar name. We’re also announcing an exciting partnership with Fair For You as part of the Affordable Credit Challenge , which sees Fintechs and community lenders join forces to change the face of lending, using funding from Nesta Challenges, and with the potential for further funding next year. As always, if you enjoy reading this issue of Metrics Monthly, you can sub- scribe to it via our website here.

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Metrics Monthly | 03 Our online Auto Decision Platform (ADP) saves on time, money and errors, driving more profits to your bottom line. ADP assesses your applicants in real-time, 24 hours a day, and delivers consistent and accurate lending decisions in milliseconds.

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New starters

Exciting changes ahead as three new starters join the LendingMetrics team

From Fareham to Shanghai LendingMetrics’ Graphic Designer Georgia Pullen recently attended the Third China International Design Art Forum for Postgraduates hosted by the China Academy of Arts in Shang- hai. Currently studying for a Masters degree in Visual Communication, Georgia was invited to the week of events as a representative of Solent University. The week-long event included confer- ences, forums and a 48-hour Creative Camp, which saw participants create art installations in a limited amount of time as part of an exhibition. Georgia was presented with two awards at the conference: third place for her Digital Media Design conference paper and presentation, and “Outstanding Works Award” for her Creative Camp piece, which she worked on collaboratively with a designer from Salford University. Georgia said about the event: “the experience was both interesting and enlightening - it gave a valuable insight into a very different education system”.

It’s been an exciting month for LendingMetrics with three new starters just before we hit the festive period. Emily, Craig and Ana joined the team in November in a variety of roles. Emily Stead has joined us as a Finance Assistant, adding further support to the Finance Team. With lots of experience working in busy financial roles, Emily will bring a great deal of knowledge to the team. Craig Jenkins is our new Busi- ness Analyst. Craig will be provid-

ing support to many of our inter- nal teams, along with our clients. Craig joins us with many years of experience. Finally, Ana Costa has started in a very unique role for us as Talent Acquisition Specialist. 2019 has been a busy year for LendingMet- rics and with our continued growth comes a continued need for new, fresh talent. With Ana on board, we look forward to announcing more new additions to the company very soon.

Finance Assistant Emily Stead

Business Analyst Craig Jenkins

Talent Acquisition Specialist Ana Costa

Above: Graphic Designer Georgia Pullen (right) is presented with two awards from China Academy of Arts

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November 2019 | UK Edition

Lending Awards Results

It was a fantastic evening for Lend- ingMetrics at the prestigious Lending Awards 2019 in London, hosted by Credit Strategy and sponsored by Experian. LendingMetrics won not one, but two awards of the four we had been nominated for! With great pride, LendingMetrics received the “Best Technology Partner – Data, Open Banking & Affordability”

and “Best Credit Information Provid- er” awards. This, coming on the back of recent award wins at the Credit and Collec- tions Technology awards and the Consumer Credit Awards has proven to make 2019 a record-breaking year of achievements for our Auto Deci- sion Platform (ADP) and OpenBank- Vision (OBV).

Above: LendingMetrics Partnership Manager Claire Januszczak and Business Development Manager Steve Beard receiving the award for Best Credit Information Provider

Did you miss us at the Lending Summit? Our Business Development team enjoyed hosting a stand at the Credit Strategy Lending Summit this month. It was a great opportunity to meet with credit profes- sionals in the industry ahead of the Lending Awards in the evening. Don’t worry if you missed us - you can still get in touch with our team of experts to arrange a free demo of our award-winning platforms by calling us on +44 (0) 2394 211010.

Above: BDMs Hamish and Luke representing LendingMetrics at the Lending Summit

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Metrics Monthly | 05

In the news US firms have invested £3.4bn in the UK Fintech industry Recently unveiled research from Pitchbrook and London & Partners shows that US firms have invest- ed a record £3.4bn in UK Fintech companies in 2019 alone

The research, which suggests more investment is to come, explains that the UK’s relationship with Silicon Valley has resulted in London becoming home to more Fintech deals than any other city. UK Fintechs such as Revolut, Monzo and Transferwise have seen huge investment, ahead of planning to launch in the US. In June, Monzo announced

a £113m cash injection from Y Combi- nator Continuity and Latitude, following their announcement of plans to roll out Monzo in the US. Mayor of London Sadiq Khan described London as “one of the best places in the world to do business” and said that the record investment is no surprise. Inves- tors in the Silicon Valley and the Bay

Area have invested more money into UK companies in the last five years than they have in German and French com- panies combined. This suggests that, despite the uncertainty around Brexit and the upcoming election, London could well be on the way to becoming the Fintech capital of the world.

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06 | Metrics Monthly

November 2019 | UK Edition

Is it too little too late for Westpac?

Christmas Jumper Day

We’re taking part in Save the Chil- dren’s Christmas Jumper Day on Friday 13 th December!

By getting together for a cracking day in our festive knits and donating, we’ll be making the future bright- er for children all around the world. Every pound we raise will give chil- dren in the UK and around the globe the chance to grow up healthy and happy, so they can become who they want to be.

Australian bank Westpac have been in the news this month after allegations by Australian’s anti money-launder- ing and terrorism financial regulator Austrac sees the bank facing massive penalties of over 1 billion USD. The allegations claim that Westpac contravened AML and CTF laws on over 23 million occasions, to which the company’s chairman Lindsay Maxsted responded: “We understand the gravity of the issues presented by Austrac and reiterate our deep sorrow for failings by Westpac.” As a result, Westpac has pledged to consolidate its systems into a single, group-wide database and to double its compliance staff to 750, after sus- pending payment of bonuses to exec- utives running the compliance oper- ations. Westpac has also closed its LitePay product, and announced plans to rebuild its technology infrastructure, ahead of an independent auditor over- seeing the process.

The allegations indi- cated that there are still unacceptable shortcomings in this area and the Board understands the need for action and account- ability. We accept that we have fallen short of both our own and reg- ulators’ standards and are determined to get all the facts and assess accountability. - Lindsay Maxsted

What could Save the Childen do with the money we raise? • £2 could pay for antibiotics for eight children suffering from pneumonia • £5 could buy a winter jacket for a child in Syria • £20 could provide a mother and newborn baby with vital supplies

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We’ve got the power

Credit Connect announce their inaugural Power List This month, Credit Connect announced its company Power List for 2019 which lists the 100 most prominent and inno- vating companies within credit and col- lections technology. The list has been compiled from the Credit and Collec- tions Technology Awards results from the past three years and is an annual guide to showcase who is leading the way in the industry. The announcement includes the naming of a top 20 ‘Premier’ list, which LendingMetrics are proud to be named in. The top 20 of the Power List features the top-performing companies that are highlighted by their dedication to innovation. Founder of the Credit Connect Awards and the new Power List, Colin White,

describes the top 20 in the list as “a diverse mix of companies that have enhanced technological innovation”. Being included in the top 20 of the Power List sees LendingMetrics along- side some of the biggest innovators in the industry, and is justified after our winning of Best Credit Risk Solution at the 2019 awards.

The 2019 Premier Power Top 20 companies are (in alphabetical order):

Credit Connect’s Awards Review

Credit Connect released their 2019 Awards Review this month, which includes their company Power List and detailed profiles on each of the Premier top 20 companies, as well as com- ments from judges at the Credit and Collections Technology awards.

Read the review

Above: LendingMetrics representatives Paul and Hamish at the Credit and Collections Technology awards in September

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November 2019 | UK Edition

Auto Decision Platform

Our online Auto Decision Platform (ADP) saves on time, money and errors, driving more profits to your bottom line. ADP assesses your applicants in real-time, 24 hours a day, and delivers consistent and accurate lending decisions in milliseconds. It’s a multi-award-winning automated decisioning and collections platform that puts you in control.

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Control using the comprehensive user interface

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Affordable credit challenge

LendingMetrics partners up with Fair For You and EML Payments as part of the Affordable Credit Challenge

Six partnerships between fintechs and communi- ty lenders have been awarded £150,000 each in funding as part of a challenge

Research conducted as part of the formation of this challenge found that over 8 million people use credit to pay for everyday household expenses with eight in ten people believing that more needs to be done to provide alternatives to high-cost credit providers by making affordable credit more available to those who need it. Understanding that there is consider- able financial pressure in low income

families during school holidays, Fair For You is proposing to use their prize funding to offer a “revolving loan facil- ity to provide buffer credit specifical- ly for an additional frozen food shop in school holidays, when low income households often using high cost short term credit to cover spikes in grocery costs when children do not have school dinners provided.” This will see smaller loans, with credit under £100, available to more people.

run by Nesta Challenges in partnership with HMTreasury with the aim to make credit more accessible and affordable.

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November 2019 | UK Edition

“The school holidays should be a fun time for families, but what should be a welcome break throws half a million children in the UK into food poverty“, says the credit provider. Fair For You will be utilising LendingMet- rics’ portfolio of products and solutions to better understand each applicant and their suitability for the loan. In particular, Fair For You will be deploying Lending- Metrics’ award winning Auto Decision Platform (ADP) to quickly make auto- mated credit risk decisions, which is key to being able to fund small, short- term loans whilst remaining scalable. Fair For You will also be utilising the Data Warehouse and OpenBankVi- sion products from LendingMetrics to gain insight into patterns and trends in income and expenditure, so that they can be sure that they are measur- ing affordability fairly and only lending when it’s right for the customer.

Angela Clements, Chief Executive, Fair For You commented: “Fair for You is delighted to be working with LendingMetrics to expand our work to provide well designed credit to more lower income households. We have been working for some time with the team at LendingMetrics led by Neil, so that we can sustainably provide more smaller loans to overcome budget busting emergency expendi- ture that creates real hardship in mar- ginal financial households. Here at Fair for You, we know that those we most struggle to serve have very few options driving use of food banks and high cost short term credit, borrow from family or just to go without and it is seeing more children growing up in material poverty in the UK than ever before. Integrating Open Banking and developing lending assessment not solely driven by credit bureau data will see us widen our work to those who most need us, and deliver even more saving of the poverty premium in 2020.”

The Social Impact of Fair For You A 2016 report by the Centre for Responsible Credit provides an assessment of the difference that Fair for You is making to the lives of its customers.

Read the report

Neil Williams, Chief Technology Officer, commented: We’re really pleased for the opportunity to be a part of the Nesta Challenge and to be able to continue our work alongside Fair For You. Research has shown that many families are facing financial struggles, particularly during the school holidays, and it’s important that there is a way for these families to find an affordable way to borrow money. Fair For You’s idea of providing a credit facility for frozen food shopping will be another step towards providing affordable credit to those who need it. We’re pleased that we’re able to support this initiative and look forward to seeing how the challenge progresses. ” “

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Training isn’t an afterthought

LendingMetrics presents: the ADP Video Training Series Training should never be an afterthought. That’s why, with every Auto Decision Platform contract, you will receive hours of custom-made training videos direct from our ADP experts, at no extra cost!

With 24/7 access, you can master ADP at your own pace, easily review topics using its convenient chapter-based navi- gation and watch online, any time, from any device. Check out our trailer below to find out more about our Video Training Series.

We know that companies change and evolve, so our Video Training Series allows you to teach and re-teach new staff easily and effectively.

Frequently Asked Questions Who is ADP integrated with? All of the major credit bureaus including Equifax, Experian and Illion/Proviso. We are also integrated with Open Banking, Machine Learning, SME–Business data and various other fraud and ID solutions, so you can easily switch bureau or go “multi-bureau” without any fuss.

Why is ADP different to other credit decisioning products? Unlike nearly every other product out there, ADP puts you in total control of changes to your decisioning; how you want to change it and when you change it. No more lengthy IT delays and no more charges for technical changes. The simple UI enables your operational staff/credit-risk officers to make changes at a user level (subject to permissions).

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Why is research and development so important? LendingMetrics has a highly proactive approach to research and develop- ment. We know that in a fast-paced industry, we need to stay ahead of the game and be leading the way in credit decision technology.

Our efforts aren’t going unnoticed either, and this year alone we’ve won numerous innovation awards including “Innovation of the Year” at the Con- sumer Credit Awards and “Innovation Award” at the Car Finance Award 2019. With new software releases around every corner, it’s important to us that our clients can stay up-to-date with new features, and our new Video Training Series can help you do just that. The videos are regularly updated in-line with the latest ADP releases, which gives you the confidence that you can make the most of our ever-evolving platform. Whilst our Operations and Support Teams are always on hand for any questions our clients might have, we know from feedback that sometimes

the answers are simple and our clients want to be able to find things out for themselves quickly. This is why our Video Training Series provides a new method of training that allows you to watch the videos on demand, and in your own time. We’re proud to say that our clients can use ADP without any coding needed whatsoever, and, with our new Video Training Series available to all ADP contract holders at no extra cost, they won’t need to be a technological expert to make the most of ADP innovative features. If you don’t use ADP to automate your credit decisioning yet, call us today on +44 (0) 2394 211010 to set up a free demo.

As a result, we allocate 50% of our tech- nical resource to continuous research and development. That means our team are able to develop new features and improve existing ones every single day. Our 3-year roadmap of future releases shows we’re dedicated to improving our already award-winning platform with the client at the forefront of our minds. What’s more, our R&D team use the Agile Software Development approach to ensure software requirements and solutions develop collaboratively while keeping the end user as the main focus.

2-weekly sprints using Agile software development approach

3 year roadmap with new universal features and enhancements

50% of technical resource focussed on research and development

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Metrics Monthly | 13

Case study Loans 2 Go choose LendingMetrics to launch online lending

Loans 2 Go have been at the forefront of Log Book loan lending since 2002 and continue to set the pace with a loan product that is fast, simple and convenient for their customers. About

Approach Loans 2 Go appointed LendingMetrics to support the launch of their online lending platform, offering automated flexible loans to suit the consumers’ needs. Loans 2 Go chose to use LendingMet- rics’ product Open Bank Vision (OBV) , which enables consumers to share their financial information, such as income and expenditure in real-time via a bank level secure portal. OBV removes resource intensive and costly process- es from the lender’s operation, reduces delays in the application process and minimises the risk of fraud by removing the reliance on paper documentation.

LendingMetrics has also delivered to Loans 2 Go Equifax’s credit insight, bank verification, affordability and anti- money laundering suite of products. These data services complement OBV by providing lenders with a complete solution for assessing the credit risk of an applicant. As part of their approach, LendingMet- rics provided credit risk advice to assist Loans 2 Go in producing their decision engine and assisted the team so that their understanding of the consumer data grew throughout. LendingMet- rics attending regular meetings both prior to and during the implementation phase in order to assist Loans 2 Go and to share their industry experience.

With over 60 branches UK-wide, Loans 2 Go have now launched an unsecured lending product in-store and online. Their aim was to continue to provide a personal experience whilst maintaining their company ethos to grow the company’s foothold in the unsecured market. They pride them- selves on their number one priority: being able to treat all customers fairly whilst providing flexible loans including debt consolidation and top-up loans. Their corporate ethos is to be transpar- ent and to make sure their customers are treated fairly at all times and given the opportunity to benefit from the financial independence they seek.

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LendingMetrics assisted with designing a multi-functional decision engine to cover all areas of credit risk including a multi bureau approach. Utilising score- cards alongside an automated rule set over various data components, they built an affordability check including an offer and loan term matrix, providing automated flexibility built into the loan offer, based on the consumer’s individ- ual circumstances. The LendingMetrics Auto Decision Platform (ADP) implementation team then took the lead - headed by a client dedicated Project Manager - and held several scoping and requirements gath- ering calls to provide a full project plan with timelines. Once all requirements were gathered, LendingMetrics took 4 weeks to complete the build of the decision engine and complete the addi- tional third party integrations required

by Loans 2 Go. During the implementa- tion of ADP, regular calls took place with lead developers on both sides so that the ADP project ran smoothly. Results LendingMetrics have delivered a service which produced a scaleable model and Loans 2 Go have now successful- ly launched online and are looking to increase their lending portfolio using the ADP platform and associated ser- vices. The solution was delivered within budget and on time, entirely as a result of the collaborative and knowledgeable teams at Loans 2 Go and LendingMet- rics. Following training, the Loans 2 Go team are now using the ADP interface to change their credit decisions in real time, champion challenge their rules and analyse the results within ADP, as well as using the Equifax suite of prod- ucts and OBV.

Consumer credit case studies Our large amount of recent consumer credit case studies (in the UK and Aus- tralia) include Omni Credit (Owned by JC Flowers), Evolution Money, Loans- 2Go, Fair For You, and Aus Loans one of Australia’s largest motor and per- sonal loan originators.

For Aus Loans in particular we have delivered a novel solution which allows Aus Loans to mirror the lending crite- ria of the 40-or-so banks and lenders on their panel, allowing them to auto- matically match a client to a specific lender (based on credit data) and then further select available deals based on the best rate available.

This is not simply pre-approval filter- ing, but a decision based fully upon the full lending criteria of those 40 or so lenders. The editing control of the engine logic is entirely within the control of the lender and they have no such dependency on LendingMetrics. We believe the solution to this model to be truly unique.

See more of our case studies

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