Brought to you by Lending Metrics
BROUGHT TO YOU BY
M etrics M onthly
UK EDITION July 2019
In this issue ONE GIANT LEAP FOR OBV OpenBankVision by LendingMetrics is the first to go live with TSB Bank
In this issue
Welcome Page 03
The votes are in! Page 04
New appointments Page 05
One giant leap for OBV Page 06
Case study Page 07
Why automate? Page 09
Taking a risk Page 10
Image by: Benjamin Davies
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July 2019 | UK Edition
Welcome
Firstly, a huge welcome to the readers of the first edition of our company newsletter! July has been a busy month for us here at LendingMetrics and we’re looking forward to what lies ahead. Over the last few years our teams have been very hard at work making prod- ucts to give our clients the competitive edge they need, while also aiming to positively shake up the credit and loans market. Our Auto Decision Platform (ADP) has steadily gained pace in a market where manual underwriting and more tradi- tional businesses practices are keeping companies from achieving their full lending and acceptance potential. Meanwhile, our Open Banking platform, OpenBankVision (OBV), has made a big splash in the newly formed Open Banking movement, garnering praise for its 90 days of free bank statement data (within its core product) layered on top of categorised, detailed transaction insights.
This month we’re not only celebrating 50 years since landing on the moon, but OBV being the first Open Banking plat- form to completely integrate with TSB Bank , making its percentage coverage of UK banks in the high 90s. With Brexit looming around the corner, we’renotworried. LendingMetricsworks with UK and Australia only partners who serve UK and Australia citizens, and as such we consider our company as well insulated against potential Brexit turbu- lence as any company can be. Brexit talk aside, July has been one of our most exciting months yet, with two new awards to add to our cabinet: Car Finance Awards’ ‘Innovation Award’ and Consumer Credit Awards’ ‘Innova- tion of the Year’ award, as well as three new appointments to our ever-growing team. We at LendingMetrics are continuing to aim high as we progress through the year and, with a similar growth forecast for the rest of 2019, we look forward to what the future holds!
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Metrics Monthly | 03
The votes are in! Winner - Innovation of the Year (Partner)
LendingMetrics is delighted to have won the Innovation of the Year award at the prestigious Consumer Credit Awards in London. The finalists were announced back in May and LendingMetrics were named for their Auto Decision Platform (ADP) and Open Banking Vision (OBV) along- side Zoot Solutions, Credit Kudos, Flexys and Elanev. We would like to congratulate all of the other category fi- nalists and are very proud and humbled by the recognition. The Consumer Credit Awards were formed in 2017 and put customers at the heart of the industry by helping them find the best credit providers in the UK. Their mission is to increase trust and transparency in the industry by deliver- ing the only credit awards voted for by consumers, and ‘not industry experts’.
Above: LendingMetrics founder David Wylie and Partnership Manager Claire Januszczak receiving the Innovation of the Year (Partner) award at the Consumer Credit Awards
Since the launch of ADP in 2017, Lend- ingMetrics has received widespread acclaim and has won multiple credit and technology awards including “Best Technology Supplier” at the 2018 Credit Awards, “Best Credit Information Pro-
vider” at the 2018 Lending Awards, “Innovation Award” at the 2019 Car Finance Awards and back-to-back wins as the “Best Credit Risk Solution” at the 2017 and 2018 Credit and Collections Technology Awards.
LendingMetrics founder David Wylie commented:
We have been seeking to positively disrupt the credit decisioning sector by delivering feature-rich, enterprise solutions at realistic price points, and this has resonated extremely well with the marketplace. This award, which is voted for by our customers, further illustrates the positive effect we are having and we would like to thank all those who supported us. With lots of major product enhancements on the horizon, we look forward to helping more lenders to achieve better outcomes for their customers in the years to come. Finally, we would like to congratulate Fair for You for their fantastic success at the same awards ceremony. As valued clients of LendingMetrics, we were delighted to see them pick up the Firm of the Year, Treating Customers Fairly Champion and Customer Service Champion awards, beating off stiff competition from some big industry names; well done! “ ”
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July 2019 | UK Edition
New appointments LendingMetrics strengthens team with three new appointments LendingMetrics has appointed Katey Watkins as Project Manager, Hamish MacCormick as BDM, and Georgia Pullen as Graphic Designer
Car Finance Awards
LendingMetrics didn’t walk away with just one new award this month - but two!
After a wonderful evening in Notting- ham, we are very proud to announce that LendingMetrics came away having won the “Innovation Award” at the pres- tigious Car Finance Awards.
Katey Watkins, our new Project Manager, has a background in tel- ecoms project management, and will help deliver LendingMetrics’ automated underwriting products ADP, LMX and OpenBankVison (#OBFREE) to its growing customer base in the finance industry. Hamish MacCormick has been appointed Business Development Manager at the Fareham company. He has expertise in IT sales and SaaS platforms and has advised in the financial services sector. Hamish joins from Lead Forensics.
Georgia Pullen is the company’s new Graphic Designer. Georgia joins from an architectural business and brings with her design skills that will be used to support LendingMetrics’ marketing initiatives. Director of LendingMetrics David Wylie said: “demand for our award-winning Auto Decisioning products has risen significantly since the beginning of the year, and we are constantly looking to grow the talented team here at Lending- Metrics. Katey, Hamish and Georgia will play their parts in our continued expansion.”
Project Manager Katey Watkins
Above: LendingMetrics Operations Manager Paul Brown at the 2019 Car Finance Awards
Business Development Manager Hamish MacCormack
Graphic Designer Georgia Pullen
+44 (0) 2394 211010 | www.lendingmetrics.com
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One giant leap for OBV
OpenBankVision by LendingMetrics is the first to go live with TSB Bank LendingMetrics are pleased to announce that its award-winning platform
OpenBankVision is the first Open Banking platform to go live with TSB Bank. Confirming the news, LendingMetrics CTO Neil Williams said that this is a huge step in the journey of OpenBankVi- sion. LendingMetrics has already seen huge demand for the platform in 2019 and integrating with such a large High Street bank will allow the platform to become more and more successful. OpenBankVision by LendingMetrics has won multiple awards as a fully cat- egorised bank statement data platform, based on decades of combined expe- rience in the field. It helps you make better and more informed lending and affordability decisions by seeing first- hand what the customer earns and spends. It allows you to instantly rec- ognise potential problems such as trou- blesome gambling habits or excessive use of payday loans. The core platform provides 90-days of categorised statement data absolutely free, with no limits, no setup fees and no contractual minimums. There also are premium options available such as access to longer statement data and the ability to fully customise the con- sumer journey. With integrations with TSB Bank now live, this largely completes the picture of coverage for OpenBankVision. TSB Bank represents around 10% of all UK current accounts, meaning OpenBank- Vision now has a percentage coverage in the very high 90s, and that the vast majority of consumers can now go through the Open Banking process with ease to provide statement data to their credit provider.
OpenBankVision: Free, forever #OBFREE
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July 2019 | UK Edition
Case study Evolution Money chooses LendingMetrics for its credit decisioning
The client
The challenge
Since it was founded in 2011, Evolution Money has been a leader in the unsecured and secured lending market.
Evolution Money appointed Lending- Metrics to support its continued growth by incorporating a much faster, flexible and openly connected decisioning plat- form that wasn’t available within their current Loan Management Systems. Evolution Money required a decisioning platform that could make immediate credit decisions within milliseconds, whilst allowing them the flexibility and functionality to build detailed and com- posite rules, scorecards and matrices, over a variety of data sources.
Evolution Money also needed a plat- form with an extensive testing environ- ment to champion challenge and eval- uate new aspects of their decisioning, in order to finesse and improve their lending decisions over the coming years. As part of these credit risk plans, Evolu- tion Money needed a significantly more open and accessible platform to inte- grate with, for the retrieval and utilisa- tion of various additional data sources.
Evolution Money have over 170 employees and have been named one of the fastest growing com- panies in 2016 and 2017 by The Sunday Times Fast Track 100. In 2017 Evolution Money also secured an additional £100 million in financing to help further grow the company and its loan book. At its core, EvolutionMoney believe that consumer access to finance shouldn’t be dictated solely by a credit score or an automated com- puter response alone. They pride themselves on review- ing each customer’s application on a case by case basis and being able to treat all customers as in- dividuals whilst providing flexible loans to those who may struggle to access finance from other lenders.
The Result Since the launch of ADP within Evolution Money, they have been able to utilise a decisioning platform which has pro- duced a scaleable model within their online customer journey to automate their credit risk policies. The solution was delivered within budget and on time, due entirely as a result of the collaborative and knowledgeable teams at Evolution Money and LendingMetrics. Following training, the Evolution Money team is now using the ADP in- terface to change their credit decisions in real time, “cham- pion challenge” their rules and analyse the results within ADP.
The combination of highly automated decisioning and in- dustry experience has delivered a scaleable solution. The client has successfully migrated to ADP with minimal business disruption and is enjoying the benefits of being in control of managing their credit risk decisions in real time. The companies worked well as a team, growing their com- bined knowledge and are looking forward to cementing the relationship with further projects.
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Metrics Monthly | 07
Why automate?
Find out how our ADP could rock your lending world
Apart from the fact that many of your competitors are already automating more of their processes, there are plenty of reasons to automate your decisioning.
Watch our video below simply by clicking on the box to see all of the ways that our revolutionary Auto Decision Platform will rock your lending world.
Frequently Asked Questions What if I want to retain that human touch to my underwriting? The degree of automation is totally within your control. You can provide fully binding decisions or simply an approval in principle. You can even give binding answers to people above a certain credit threshold and an AIP to others requir- ing more in-depth investigation. The choice is yours. Isn’t this type of software expensive? Generally yes! However, ADP by LendingMetrics is a posi- tively disruptive force in the market and prices are tailored to your business. Affordable entry level pricing right up to enterprise. Put it this way: we think you’ll be pleasantly sur- prised when we show you what you get for your money.
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). Can I use ADP for champion/ challenge and retro analysis? ADP has several novel and unique tools to enable real time “what-if” and “champion/challenge” of your clients. This enables your business to test several possible improve- ments to your credit policy all at once, without impacting on your live lending activities.
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July 2019 | UK Edition
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Metrics Monthly | 09
Taking a Risk Comment by Neil Williams, CTO of LendingMetrics Pricing flexibility is something that surrounds us as consumers. parties. This data, which has always been jealously guarded by the major banks, is now available to all lenders (with the agreement of the finance ap- plicant) via account information service providers.
With an applicant’s permission, months of transactions can be probed. Read-on- ly data comes directly from the bank that holds the current account to the AISP, so there is no scope for fraud.
Ten years ago, I might have gone into a corner shop and asked for a bar of Cad- bury’s Dairy Milk. Back then, the news- agent would have known exactly what I wanted, as there was only one Dairy Milk. It was in bar form and, apart from a large or small bar, that was the limit of the choices on offer. Today, if I go into a shop, I am presented with a never-ending array of Dairy Milk in any number of forms – bars, party bags, eggs, boxes, etc. There is even a ‘Mummy’ Dairy Milk bar for children to buy to take home to their mum. The point is, there is an almost infinite range of price points and product packs to hit the consumer with. If the consum- er is even vaguely interested in Dairy Milk, there is something there to inter- est them. Such variety is proven time and again to increase sales over the previous ‘take-it-or-leave-it’ stance. But in finance this degree of flexibil- ity has been more difficult and quite expensive to achieve. Products have been more along the ‘take-it-or-leave-it’ model. If you didn’t make the criteria, you could not have the product. And the product was the way it was, no chance of tweaking it. Many lenders have this sort of stance today, although they might not realise it. But technology has moved on and it is now perfectly possible to have a ‘Dairy Milk’ product offer within finance. So- called risk-based-pricing can allow you to do the same, easily introducing a spectrum of options all under the same core brand and model. As we all know by now, OB requires banks to share their line-by-line detailed customer statement data with other
The granularity of open banking data allows you to offer borrowers a bespoke interest rate and term, and do it automatically in seconds. “ ”
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July 2019 | UK Edition
As we all know by now, OB requires banks to share their line-by-line detailed customer statement data with other parties. This data, which has always been jealously guarded by the major banks, is now available to all lenders (with the agreement of the finance ap- plicant) via account information service providers. With an applicant’s permission, months of transactions can be probed. Read-on- ly data comes directly from the bank that holds the current account to the AISP, so there is no scope for fraud. And it is supplied in real time. Someone applies, agrees to limited time frame and read-only access to their accounts, and thousands of lines of transactions can be analysed. In milliseconds, this can pull out salary details and all finan- cial commitments, to be then tested by algorithm. Lenders – for the first time – can make an affordability assessment that is ex- tremely accurate. Obviously, the key thing about this is that once you have such accurate and real-time information, the automat- ed decision software can produce a bespoke interest rate and term that exactly matches the circumstances of
the applicant. And all this is done digi- tally and, as mentioned, in seconds. No more paper applications, no more la- borious supplying of paper ‘proofs’, no manual underwriting of loans, no more two-week wait for a decision. The OB tech has other benefits. Mis- takes are eliminated. Loan manage- ment is made much easier. A bor- rower’s bank transactions are usually obtainable within a 90-day time frame, so, if a first payment is missed, the account can be constantly interrogated so a request payment call can be timed when there are sufficient funds in an account. Ah, I hear you say, what about the ques- tion of implementation timescale and IT expertise availability? Well, neither of these need apply. There are platforms – such as our OpenBank- Vision (#OBFREE) – that are available off-the-shelf. They can be white labelled and made to work within hours. We can have OBV working on the day a con- tract is signed. Such platforms have the benefit of being tried and tested. The platform could even be free (as Open- BankVision is). Finance providers that are using this sort of know-how have been able, in an
instant, to move over to ultra-flexible product offerings tailor made to a bor- rower and, at the same time, dramati- cally improve their affordability checks. So, for those lenders who are still happy to stick with the status quo, all I can hope is that they think of me when they next go into a newsagent to buy a bar of chocolate.
Above: LendingMetrics Managing Director and CTO Neil Williams
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