Confident credit decisions need quality data.
Find out more NewDay harnesses data to say yes to more people
Overview: NewDay harnesses the power of data to responsibly say yes to more people
Discover how Experian partnered with NewDay, the UK's leading provider of unsecured personal credit
NewDay issued one in six of the UK’s credit cards in 2021. The company’s aim is to be the UK’s leading digitally-enabled consumer finance provider, developing innovative ways to help customers stay in control of their finances, access credit seamlessly and improve their credit scores.
Through introducing a suite of Experian data solutions, combined with their own data capabilities, NewDay’s new models are up to 69% better at profiling risk vs. industry standard and enabled NewDay to more than double new customer exposure without change in credit quality.
Challenge overview
As part of it’s continued evolution, NewDay wanted to update its credit risk and underwriting capabilities by upgrading its existing scorecard. This was seen as essential to maintain its competitive advantage and to continue its programme of growth which had seen it acquire an additional 907,000 customers in 2021.
The challenge for NewDay was to see if it could continue to acquire new customers and lend responsibly without increasing the risk to the business or to the customer, while at the same time staying true to its mission to help people move forward with credit.
Challenges
- Continue growth through new customer acquisition
- Access the best data for regulatory compliance
- Continue responsible lending without increasing risk to the business or customer
View NewDay Profile
Company Bio:
NewDay is a leading provider of unsecured consumer credit in the UK providing 4.6 million customers with access to credit. The firm is a broad-spectrum lender with a specialism in delivering services to near-prime customers who may not have easy access to credit from mainstream lenders.
Its credit product offering includes physical and digital cards – including Bip, the UK’s first digital only credit card – and NewPay, a Buy Now, Pay Later (BNPL) service offering instalment finance and revolving credit that is fully regulated.
| |
|---|---|
| Founded: | 2000 |
| Industry: | Financial services |
| Featured brands: | Newpay, Bip |
Solution overview
NewDay undertook a competitive review of the market to assess the performance of each UK credit bureau’s credit scorecards. Experian’s latest version of Delphi credit scorecard, in association with Experian’s Trended Credit trade level data, and Affordability IQ (AIQ) resulted in significant uplifts in scorecard power versus existing models and a greater assurance of lending affordability.
NewDay's new models are up to 69% better at profiling risk vs. industry standard generic models, and enabled NewDay to more than double new customer exposure without any change in credit quality.
Discover our solutions for credit and affordability insight
Results
- Suite of Experian products integrated into scorecard modelling
- Significant uplifts in scorecard power
- Greater assurance of lending affordability
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