Lending Works has partnered with credit reference agency Experian to help it assess and manage prospective borrowers.
The peer-to-peer consumer lender will use Experian’s data product to understand an applicant’s ability to afford credit and to identify if they have had a reduction in income that could make it harder to maintain repayments.
The platform said the tools will help proactively manage a customer’s financial wellbeing, ensuring they are treated fairly and responsibly throughout the life of a loan.
“Understanding and assessing affordability is critical in the current environment,” Ines Maia, chief revenue officer of Lending Works, said.
“Experian’s in-depth and granular insight is the most predictive available, and we expect the quality to continue to improve as it expands traditional and new datasets.”
Paul Speirs, managing director of digital consumer information at Experian, said the uncertain economic environment means it’s essential for lenders to have the most up-to-date and accurate insights.
“As Lending Works’ primary bureau of choice, we will help them to understand which consumers are on an upward trajectory and in a better position to take on finance than a static credit score would suggest,” he said.
“The sensitivity that our income shock data offers will provide Lending Works the insight to proactively manage customers and safeguard them.
“We continue to seek new, growth-hungry partners in the fintech sector and improve their customer insight using a combination of bureau and open banking data to broaden the range of options available to people.”