CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Equifax incorporates income analysis into affordability indicators to support responsible lending
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Equifax incorporates income analysis into affordability indicators to support responsible lending PDF Print E-mail
Wednesday, 07 June 2017
Equifax, the consumer and business insights expert, has unveiled a new toolset of creditworthiness and affordability indicators. The indicators incorporate borrower current account turnover data to help lenders make informed, responsible lending decisions through enhanced understanding of a customer’s financial background and estimated income level.

The combined insight on a borrower’s income, outstanding debt and credit usage will provide lenders with a clearer understanding of a customer’s capacity to make repayments, and the most appropriate credit terms for a loan.

By more accurately estimating a borrower’s ability to afford a loan, lenders can address challenges posed by regulatory requirements to identify potentially problematic debt or financial vulnerability. The toolset can be used at point of application, and over the lifetime of the credit agreement, enabling lenders to monitor affordability for both new and existing customers.

Key components of the new offering include:

· Current Account Turnover (CATO) Affordability Indicators – provides information on the customer’s current account turnover, level of unsecured debt relative to turnover and significant changes to turnover.
· CATO Affordability Index – helps lenders segment and monitor their customer population with evidence of income level (turnover) and current account usage and to establish the appropriate credit terms for individual circumstances.
· Credit Indicators – provides a transparent view into key indicators of current and future financial distress to assist lenders with fair and tailored treatment of their customers.

Jake Ranson, Banking and Financial Institution expert at Equifax, said: “Assessing a borrower’s capacity to meet their repayments is increasingly vital to protect against over indebtedness. These new creditworthiness and affordability indicators are an important part of our strategy to use new data insights to deliver enriched intelligence to our clients. The toolset will assist lenders in meeting their responsibilities to their clients and their regulators, providing a comprehensive picture of a borrower’s financial standing, and a transparent view of signs of credit distress.”
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197