Credit Risk - YES-secure.com
Background
YES-secure.com is a Social Lending web portal which gives you a unique opportunity to secure unsecured loans on low interest rates below those of your local banks. Social Lending, also known as peer-to-peer and person-to-person lending, is a means by which borrowers and lenders may transact business without the traditional intermediaries, such as banks.
Objectives
1. Integrating with lending comparison sites -
delivering an accurate APR
In terms of marketing YES-secure, partnerships were established
with a variety of comparison websites, which showed YES-secure as a
viable alternative to applying for a loan at the standard banking
institutions. One website in particular wished to integrate their
technology with YES-secure for borrowers wishing to compare loans.
Due to the auction nature of YES-secure, an accurate expected APR
was required for the borrower based on their personal circumstances
before they chose to apply for a loan on YES-secure.
2. Underwriting
To best protect their customers, Yes-secure.com had to ensure that
lenders were informed of accurate borrower information when they
made their bids. This required credit score information to allocate
a borrower with a transparent and easily understandable grade from
A* to E.
3. Integration
To give lenders more information about potential borrowers along
with credit information, YES-secure.com provide customers with
information such as connections, personality and circumstance as
part of the approval process while protecting member's personal
data. It was therefore necessary for credit data to feed seamlessly
into this unique and comprehensive approval process and combine
with their profile.
Solution
Callcredit were able to offer a quotation search, upon which YES-secure would be able to view the credit score of the borrower without leaving a credit footprint before quoting to comparison sites and hence discover whether they would be graded A*-E before applying to YES-secure.
If the applicant wished to proceed with their application, Yes-secure would then carry out a full credit search using Callcredit's SHAREReport. SHAREReport takes into account a person's payment patterns and debt over the past six years as well as an applicant's name, address, the presence or absence of any adverse public data and an applicant's credit score.
Yes-Secure.com utilises Callcredit's Gauge credit risk scores to
obtain a fast, objective and consistent measurement of the credit
risk associated with each consumer, based on information contained
in their credit report. With this information, Yes-Secure.com can
better understand the likely future payment performance of their
customers or prospects and therefore make more informed
decisions.
The SHAREReport data is delivered to YES-secure.com through an API created by Callcredit's Technical Consultants, to ensure that it remains consistent with other strands of YES-secure.com's approval process.
Benefits
• Positive experience for YES-secure.com customers as
a result of quick assessment of consumers' loan applications
• Callcredits ability to provide high volume and consistent
financial data.
• Flexibility of Callcredit - tailoring APIs to suit
needs
• Customer service from assigned contacts at Callcredit
"We selected Callcredit as our Credit Agency as a result of the feedback we received from the market at the time regarding its flexibility, ease of integration and rich data. Access to Callcredit's SHAREreport gave us the opportunity to view payment patterns provided by other lending institutions stemming back six years, offering the most conclusive and accurate report available in the market."
Hannah Simkin
Customer Services and Underwriting Manager
