Affordability assessments have become an essential part of financial services in the last five years, particularly credit and lending. The Financial Conduct Authority expects firms to understand a customer’s financial circumstances, their income, credit commitments, priority bills and discretionary spend.
Pain points within affordability assessments
It sounds like a simple concept – Take the cost of mortgage or rental payments, utilities, motor and groceries from monthly income gives a customer’s disposable income.
Unfortunately, people’s lives are not that simple. Weekly paid customers, shared incomes, customers with benefits, self-employed customers, informal payments for rent, part time work, seasonal work are just some examples of why calculating a customer’s regular income is complex.
Expenditure is even harder and requires an understanding of the customer’s personal situation.
Open Banking and other data services help, but they don’t solve the problem. ‘One size fits all’ forms are inadequate to understand the very specific life circumstances of customers. The only way to truly understand a customer’s income and expenditure is to engage with the customer, personally.
A personalised customer assessment tool
PrinSIX allows our clients to create dynamic, personalised experiences that explore their individual circumstances, in detail, through a digital experience that doesn’t put a barrier within new customer onboarding.
Providing Income and Expenditure data easily and sensitively.
Minimise the friction that affordability puts on the customer experience.
Risk & Compliance objectives
Understand customers’ circumstances to ensure they are served with products appropriate to their circumstances and deliver good customer outcomes.
The PrinSIX solution
The PrinSIX Orchestrates income and expenditure journeys that meet the needs of every customer, through every channel.
Deploy Open Banking integrations to get the deepest insight into customers’ financial circumstances.
Provide intuitive self-declaration journeys for customers who reject Open Banking.
Categorise using the Standard Financial Statements, tailored to customer and product risk.
Validate expenditure based on customer circumstances using analytical models built on ONS or other insight.
Calculate disposable incomes based on each customer’s financial and personal circumstances
PrinSIX helps our clients maximise their understanding of customers’ financial position, while minimising customer friction.
Collaborating with PrinSIX to develop the UK’s first digital validation for our social tariff, which was deployed within a matter of weeks, has resulted in a 141% uplift in our social tariff take up – meaning more residents of Hull & East Yorkshire can manage their monthly bills during the cost-of-living crisis.
Our clients understand their customers. The PrinSIX team understand digital orchestration. Our collaborative approach combines both to realise the true digital potential that exists in our clients’ businesses.