Fair and fair alike
It’s a very busy time for Equiniti Pancredit. Driven by low interest rates, the consumer credit market is particularly buoyant, especially within the sectors of motor finance and personal loan finance, and Equiniti’s software house has been approached to assist on a wealth of new products such as guarantor loans.
What’s more, Equiniti Pancredit was recently commissioned to power FairMoney, a new loan comparison site that puts responsible lending at the heart of the credit market. “Our software was chosen as it enables lenders to lend in an automated fashion which creates a slick journey without sacrificing the ability to make proper lending decisions,” explains Graham Donald, Managing Director of Equiniti Pancredit. “It enables people to make intelligent and informed decisions, which is central to FairMoney’s ethos.”
Equiniti Pancredit’s primary solution for all lenders is Core Pancredit, a complete loan application, administration and collections system for all lending products, including unsecured, secured and asset-based loans. “It’s a full end-to-end software solution from origination to collection which in itself is really unusual,” says Graham.
Graham continues "Used by finance staff and system administrators, the software ensures that tasks such as changing an address or administering the credit agreement can be easily carried out.”
Operating within Core is MADE (Multi Agency Decision Engine), which is decision engine smart technology that has the capability of simultaneously searching multiple credit reference agencies using a lender’s specific set of criteria and then determining which products a customer will qualify for. “When making an application, MADE will check a customer’s credit profile against Equifax, for example,” says Graham. “We can also build the lender’s credit rules into the engine. The set of criteria can be very basic such as the age of the customer through to sophisticated streams.”
Using MADE to match a customer’s credit profile with a range of lenders, Equiniti Pancredit has a strong record in developing software for price comparison websites. One of the biggest issues with these websites is that they deliver too many unrefined options. As Graham explains, MADE’s smart search technology allows a customer to refine the selection of lenders according to their own personal circumstances: “Our technology asks more questions, so for example how long have you been employed? How long have you owned your home? Instead of having to search through 60 lenders, those components give you a much more condensed number that are more likely to lend to you.”
Developed in partnership with Campaign for Fair Finance founder Dr Roger Gewolb, FairMoney employs Equiniti Pancredit’s MADE technology to help customers find manageable and affordable loans, based on their personal circumstances. The site is driven by the belief that the majority of loan comparison websites do not provide a fair offering to customers in need of financial support, particularly those who fall into subprime categories or have poor credit ratings. Graham explains:
“Additional automated checks are also performed including thousands of algorithmic disqualification factors so only the fairest and most relevant loan products are listed to customers. It’s a great example of what can be achieved when this level of intelligence is built into a comparison website.”
FairMoney requires that all lenders subscribe to its promise to treat customers fairly and uphold FCA regulation, thus only lenders that have approved lender status are featured on the site. Whereas other sites will rank lenders by, for example, how much commission they receive, the results on FairMoney are based on the total amount payable by the customer, which means the customer only sees the results that are best for them. It is entirely transparent. Graham notes:
“FairMoney ensures customers are directed to the most appropriate loans for their needs. It is a very exciting development in the industry as it looks to tackle these key issues.”