[Re: Don’t penalise cash-strapped Brits, FCA warns insurers, 29 September]
As interest rates soar, the FCA’s call for lenders to come up with solutions for borrowers is a stark reminder that consumer needs must remain front and center.
In the face of skyrocketing living costs and a booming mortgage industry, our research shows that half of lenders are still using outdated credit scoring models that don’t take account transaction data into account. consumer banks, potentially excluding millions of people who can afford credit.
The lending industry needs to unlock fairer accessibility controls to better support consumers and businesses. New lending models leverage real-time data to access banking information such as payment history and income levels to paint a holistic picture of people’s finances.
This is key to promoting financial inclusion, as people need access to safe, affordable and regulated borrowing options now more than ever.