Social distancing, crumbling consumer confidence and a long period of lockdown led to business closures, job losses and massive income uncertainty. The government’s furlough scheme helped many keep their heads above water, but by May around 40% of the UK population had experienced income shock, with many more remaining at risk.
Undoubtedly, this new income uncertainty is straining customers’ resilience – yet in terms of lending, their need for credit, of different varieties, is greater than ever. Against this new backdrop, providing responsible lending without unreasonable risk means taking a new view of consumer affordability, right across the lifecycle.
Explored in this paper:
- An economy in shock
- Economic scenario mapping
- Recognising consumers’ new reality
- Addressing the shortfall in trusted tools
- Combining creditworthiness with affordability
- Monitoring a new set of metrics
- Open Banking: helping firms find certainty in the face of crisis
- Unlocking opportunities for everyone