Credit Risk

Make more informed lending decisions with real-time data and instant insights.

Problem

Understanding an applicant in ‘the now’ is a crucial piece of any credit risk decision.


Unfortunately, Credit Reference Agencies offer scores that are retrospective and rarely paint a complete picture of an applicant’s financial situation in today’s world.

Lenders must adhere to extensive due-diligence measures to ensure they manage credit risk adequately. Relying on applicants to submit the required information, often in paper-based documents, leads to inaccurate, self-asserted affordability.

Solution

With bank data, underwriting teams can make irrefutable decisions with the upmost confidence.


Accessing 12 months of transaction data, provided by Open Banking, offers underwriters a complete view of an applicant’s financial profile. It can identify risk in the forms of gambling or loan stacking, but also, indicators on an individual’s spending habits, missed payments history, and wider affordability.

Lenders can leverage bank data during assessment periods to reduce risk and increase the conversion rate of new applications.

DirectID Products Solving
Credit Risk

With our suite of value-add solutions, we give lenders the power to redefine their credit risk management at every stage of the credit risk lifecycle.

With visual reports providing insight on end-of-day balance, income, disposable income, loan stacking, gambling and more, not only can you make decisions faster, but you can be sure that the decisions you make are made with supreme confidence.  

Customer Use Case

A top 5 lender in online lending services uses Open Banking data to provide a frictionless application and fast funding process. During the application phase, applicants are prompted to securely share their transaction data through the DirectID consent widget. A detailed view of the individual’s financial profile is then visible to underwriters in as little as 30 seconds, providing verification of account ownership, income and expenditure, and a magnitude of other affordability indicators.

Using Open Banking data to gather this information eliminated fraudulent applications, removed the guesswork associated with manual underwriting, and reduced the application to acceptance turnaround time, all without impacting the individuals credit score.   

Associated Products:

- DirectID Connect
- DirectID Data API
- DirectID Insights

Six Reasons Why You Can Place Your Trust In Open Banking


To get us thinking around security in Open Banking, we have below outlined six reasons why consumers can consider it secure. Prime amongst these is that it uses bank-level security and does not require forfeiture of your bank log-in details.

Read this article
DirectID bank statement information proves our rigorous underwriting standards for regulators.

Lee Birkett
CEO, Just Us

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CRA Implementation



Don't lose business through exceptions processes or marginal applications. Supplement your standard CRA assessments with instant insights and real-time data.

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