Helping you manage risk and comply with regulation
A need for change
The Government has clear and simple objectives for Credit Unions, which is to make borrowing more affordable and widely available to those on lower incomes. To achieve those goals, the modernisation and expansion of Credit Unions is essential. Callcredit provides the data and the technologies to help you achieve these goals, quickly and effectively.
Managing risk - automated loan decision making for Credit Unions
As part of the Government's drive to increase operating efficiencies within Credit Unions, the use of modern technologies is becoming ever more important. Such technologies include 'automated loan decision making', already adopted by most commercial lenders to deliver a more robust business model by managing risk and reducing operating costs.
Using Callcredit's online credit checking system, CallReport, as part of that decision making process enables higher volumes of loan applications to be credit scored without compromising levels of service to members.
To further enhance the credit score within CallReport, we welcome Credit Unions to apply for membership of SHARE, the closed user group of UK lenders that pool account performance data to promote responsible lending. SHARE is free to join and helps lenders to understand an individual's propensity to repay a loan based upon their previous two years of account performance data.
The relevance of SHARE
Callcredit, has established a significant presence in many of the larger Credit Unions. A substantial proportion of lending in the UK is conducted by SHARE members, so the data they have submitted on the credit performance of their clients is of particular relevance when credit scoring potential customers.
The very nature of Credit Unions usually means resources are heavily biased towards providing a service to its members. As such, implementing a risk based approach to customer due diligence can be seen as a considerable drain on time limited resources.
However, this is an area that cannot be ignored and procedures must be evident through a clear audit trail. To alleviate some of the burden of compliance, Callcredit is making CallML more affordable to Credit Unions. CallML, Callcredit's award winning online identity verification service, has been specifically designed with JMLSG guidance in mind. It provides near instant results, which can either be filed electronically or printed off for audit purposes.
Trace members who have left an unpaid debt
As part of the modernisation process, Credit Unions can no longer rely on local knowledge to manage bad debt, especially when there are online tools available to track down absconded members in-house and recoup unpaid loans at a low cost.
CallTrace enables you to input their last known address and easily locate stray members utilising market leading address link intelligence built up from our unique credit referencing resources. In keeping with traditional values, this allows you to approach them directly with a friendly letter before having to hand the debt over to a collections agency.
Therefore, if you would like to discover more about any of our solutions, don't hesitate to contact us. One of our experienced team would be happy to discuss your needs and explore possibilities.
To find out more or for a little free friendly advice contact us and one of our experts will contact you shortly.