The problem of ‘double counting’ consumer credit files when using data from more than one bureau has been solved thanks to the introduction of a new solution from LendingMetrics.
The data specialist’s DeeJoop platform, which is set to be used by lenders for the first time this week, distills credit risk data from multiple bureaus to produce a ‘net’ credit file for consumers. Using proprietary algorithms, it interrogates the large quantity of data contained in multiple Credit Reference Agency (CRA) files and removes double-counted credit commitments, defaults, mortgages, CCJs and other duplicated elements of a consumer’s credit file.
The DeeJoop file returned, in compliance with a provider’s decisioning parameters, produces higher quality affordability assessments to ensure that lenders treat customers fairly and identifies the trust picture of a client’s credit file in amongst the inevitable duplication of data.
A copy of the original consumer credit file is always retained, meaning that subject access requests and corrections can be handled in the usual way.
The platform has been in development since mid-2020 by LendingMetrics’ team of credit risk analysts, architects and developers, who have drawn on the company’s extensive lending technology expertise.
The solution evolved from a welcomed increase in regulation across the industry, leading to finance providers needing to carry out more effective affordability and eKYC assessments on applicants. For those with thin credit files, lenders can run multiple bureau searches, but this can be problematic given the need to handle different data formats and heavy data duplication, as well as unpredictable CRA coverage and occasional outages. The new DeeJoop technology enables providers to efficiently run these multi-bureau searches and avoid wasted opportunities to lend to otherwise perfectly suitable borrowers.
David Wylie, Commercial Director of LendingMetrics, said: ‘We have helped countless lenders to create and refine their credit risk strategies and have done so with visibility across the CRA spectrum. This places us in the unique position to identify the challenges faced by our customers and to develop solutions to overcome those challenges. DeeJoop is what a lot of lenders have been waiting for. Finally, they have something that delivers higher match rates and better affordability assessments though a true multi-bureau solution.’
Unlike other solutions, DeeJoop is an entirely proprietary solution. Access is via a single, future-proofed API, purpose-built to cover amendments by CRAs to file formats and APIs. It is available as a completely stand-alone SaaS solution, or fully integrated with LendingMetrics’ market-leading ADP and LMX platforms.
Mr Wylie added: ‘Against the backdrop of the evolving regulatory landscape, DeeJoop ensures that lenders can make better credit decisions whilst seamlessly on-boarding more customers in an ever more competitive environment.’