Experian Affordability

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Putting the individual at the heart of affordability

With Experian Affordability, we make sure you can treat every customer as an individual; helping them meet their needs and goals by better understanding their personal circumstances. 

How do we do this?

We do this by providing quick and easy access to a more accurate, personalised view of income, expenditure, and affordability across new business processing and on-going customer management. 

Benefits

Enhance the customer experience

Help deepen your customer relationships to drive future business growth

Ensure you lend in a compliant and responsible manner

Affordability assessment- Combining Open banking and Bureau data

We provide you with immediate access to account turnover data, detailed bank transaction information from Open Banking, and access to credit information helping you so you can reach the ‘fastest path to decision’. You can be more responsive to your customers’ personal financial situation across your entire relationship with them.

Box out: We verify up to 80% of incomes automatically, saving time and money, and providing a more accurate view of what is affordable. 

We understand that every business is different.

Experian Affordability provides the flexibility to choose the right level of data access to suit your needs, along with detailed analytics to support your decision making:

Affordability IQ Bureau Data

Income Estimation

A friction-free way to quickly estimate an individual’s income.

When is this used?

This is frequently used when a customer is applying for credit without the need to enter income levels as part of your application process. It ensures the process is as streamlined as possible. 

Income Verification

A simple method of accurately verifying an income amount supplied by an individual in an application.

When is this used?

This is used for all forms of lending where customers are providing their income amount so you can check that its correct. It can be used to minimise fraud and confirm credit terms.

Income Stability Metrics

A series of red, amber or green flags that highlight changes in current account turnover by comparing the median account turnover values over various time periods. There are separate metrics for identifying increase or decrease in turnover.

When is this used?

This is useful for all types of credit products and for monitoring consumer behaviour. This is particularly relevant where an individual’s employment results in monthly fluctuations to their income such as seasonal or contract work or during periods of economic instability

Effective Disposable Income (EDI)

Monthly estimates of a consumer or household’s disposable income.

When is this used?

When used together with a credit score, EDI can help you to automate credit applications for products such as mortgages. This will help you to understand what income they have left after essential costs are considered for a Decision in Principle (DIP) or to confirm income for a personal loan.

Effective Disposable Income RAG

A series of red, amber or green flags based on Current Account Turnover data (CATO) that highlight if the customer’s Effective Disposable Income is enough to support the loan requested.

When is this used?

This is a simple, but effective method of assessing disposable income when it is not given by a customer.

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Debt to Income Ratios

A measure of an individual’s outstanding debt compared against their gross annual or net monthly income.

When is this used?

 It is commonly used as additional insight to understand an individual’s ability to afford credit. It is also helpful if your organisation is looking to refine their credit policy rules.

Open Banking Data

Affordability Passport

 A real-time, personal view of affordability that is based on an individual’s income and expenditure data together with other credit information sourced from Open Banking and our bureau. The data is verified using Experian identity checks so can be easily shared across multiple organisations (with customer consent) to streamline decisions.

When is this used?

This is most appropriate to aid high value lending decisions such as mortgages or car loans, or for manual referrals where a more detailed underwriters review of a consumer’s income and expenditure is required.

Analysing Open Banking data

Having access to the insightful data from Open Banking is one step in the journey. The ability to then quickly analyse the insight is key to making fair and appropriate decisions.

Categorisation as a Service (CaaS)

Categorisation as a Service (CaaS) is our powerful, real-time analysis engine that looks through credit and bank transactions to identify and categorise income and expenditure all provided in an easy to use format.

When is this used?

It is used to simplify the analysis of a customer’s detailed financial behaviour to help to inform decisions that require the analysis of credit or bank transaction data including affordability

Affordability Portal

Affordability Portal is our hosted analytics dashboard that provides you with the summary analysis of a customer’s credit, income and expenditure behaviour.  The dashboard enables easy interpretation of a customer’s financial behaviour including triggers and alerts that aid the analysis of transaction data. 

These services are delivered from our Open Data Platform using RESTful APIs or secure urls making them simple and cost effective to deploy.