Affordability

Problem

Affordability requirements continue to develop in complexity.



While lenders can use Credit Reference Agencies to determine what loans, credit cards and other financial products an applicant has currently and historically, determining what the impact of a new financial product will have on an applicant remains challenging. Traditional methods of assessing affordability are largely inefficient, time consuming, and limited to historical information, often dating back as far as six months.

Solution

Bank data can answer all the questions that are asked of a customer regarding affordability.


Layering the raw data with enriched insights provides a lender with a detailed view of what outgoings the applicant has compared to salary or income, making discretionary spend calculation much simpler. This can all be done in seconds from when an applicant connects their bank account negating the need for paper documents.

DirectID Products Solving Affordability Assessments

Raw transaction data alone offers little value.

So, we have developed an Open Banking platform that enriches the data and visually presents detailed financial insights in seconds. Whether it be understanding the reliability of an applicant’s income, or maintaining a view of someone’s current debt fees, our financial insights solutions gives you everything you need to make an accurate affordability decision.  

Customer Use Case

A leading mobility and accident services provider operates with one goal: to get their customers back on the road as quickly and safely as possible.

When a customer struggles to prove that they do not have the funds to pay for a replacement vehicle, they are prompted to connect their account through DirectID. By accessing DirectID Insights, the company can then view the relevant information that portrays a customer's affordability, utilising the advanced visual dashboard to display E.O.D balance, income vs. outgoings, and the stability of their salary payments.

Associated Products:

- DirectID Insights
- DirectID Income Verification

A Case Study In Affordability


In this article, we examine the downfall of a company once valued at $1 billion, ask what role financial authorities played in their introduction of affordability regulations, and consider the future of the lending market.

Read this article

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