Affordability Risk Insights
Our insights leverage open banking data to offer a deeper view of your customer's financial landscape. They're designed as supplementary tools, spotlighting noteworthy transactions. However, it's crucial to note that these insights are not meant to influence credit policy or lending decisions. Think of our insights as informative indicators rather than directives, providing valuable context for your consideration.
The thresholds dictating Amber or Green indicators are based on research, client feedback, and our approach to highlighting potentially risky behaviours. They are designed to provide consistent and objective insights across our diverse range of clients, each with unique risk appetites.
Key points about the thresholds
- The thresholds are intended as indicators to draw attention to transactions that may warrant further investigation, not as definitive risk assessments or decision-making tools.
- They are standardised to ensure broad applicability across different types of lenders and risk profiles, such as banks, credit unions, auto lenders, and high-cost lenders.
- Green signifies "safe to proceed," while Amber signals "proceed with caution," encouraging clients to assess the underlying data before making decisions.
- At present, thresholds are not configurable on a per-client basis, but this is something we may explore in the future.
| Insight | Description | Thresholds |
|---|---|---|
| Debt collection payments | Debt collection payments as a percentage of income displayed as a monthly average | Green: 0% Amber: Greater than 0% |
| Gambling spend | Gambling spend as a percentage of income displayed as a monthly average | Green: Less than 5% Amber: Greater than or equal to 5% |
| Loan repayments | Loan repayments (excluding mortgages) as a percentage of income displayed as a monthly average | Green: Less than 10% Amber: Greater than or equal to 10% |
| Failed Direct Debits | Total number of failed direct debits identified in transaction history | Green: 0 Transactions Amber: 1 or more transactions |
| Cash withdrawals | Cash withdrawals as a percentage of income displayed as a monthly average | Green: Less than 15% Amber: Greater than or equal to 15% |
| High cost short term lenders | Total number of high cost short term lending merchants identified in transaction history | Green: 0 Transactions Amber: 1 or more transactions |
| Recent loans | Total number of loans drawn down into a customers account identified in transaction history | Green: 0 Transactions Amber: 1 or more transactions |
| Potential* unarranged overdraft usage | Total number of unique days across all connected accounts spent in possible unarranged overdraft | Green: 0 days in possible unarranged overdraft Amber: 1 or more days in possible unarranged overdraft |
*Potential Unarranged Overdraft
We estimate unarranged overdraft days by assuming that the credit limit of the account hasn't changed. We don't have access to historical overdraft limit information, and cannot guarantee that this customer wasn't operating within an approved overdraft limit previously.
Updated about 11 hours ago