Cashfloat’s data-modelling scientists have developed an advanced affordability model, designed to generate a clearer picture of the client’s affordability. This enables the Cashfloat team to make decisions about lending, better aligned with the FCA compliance framework. Western Circle Ltd, a London-based lending company trading as Cashfloat.co.uk, confirmed that its new affordability model has been fully implemented throughout the company. As the FCA turn increasing focus on the adequacy of lenders’ affordability checks, deciding whether a client can afford a loan is harder than ever. This new affordability check may just be the ultimate solution.
“This advance affordability model enables the Cashfloat team to have clearer and by far more accurate information at their fingertips when deciding about lending. We take the FCA’s guidelines very seriously, and the raw data provided by the leading UK CRAs is simply not sufficient,” commented Ofer Akerman, Cashfloat Business Intelligence and SEO expert.
To make a decision, lenders utilize a credit rating agency to obtain information about the client’s credit rating. However, according to Cashfloat, the raw data is often reads with inconsistencies between real time data and the credit file, making it difficult for lenders to obtain clear affordability insights. The advance affordability data model synchronizes, analyses and evaluates the real-time data on current short term loans together with the complete credit file and produces a set of affordability parameters that lenders use to support their lending decision. To date, Cashfloat has enabled over 4,000 people in the UK to obtain affordable loans online.