CreditCents provides credit providers with a set of tools and solutions to ensure that they offer fair banking to their customers and participate in overcoming the challenge we all face with consumer indebtedness.
The 3 solutions for effective credit management in the next decade are:
1. Cash flow analysis accompanying consumer bank statements
Automated classification of the consumer's bank statements allows for both the consumer and the credit provider to identify poor financial behaviour. It is a tool that allows the consumer to identify their negative cash flows and alert them to the need that corrective action is required before they become over-indebted.
2. Access to relief for consumers prior to default
The UK's Fair Banking Association recommends that this solution be managed by an independent entity on behalf of the credit provider for best results. This offers immediate relief for the consumer where they have experienced short term financial strain, making sure that the more damaging debt spiral is avoided. Such access will provide the consumer with living cost benchmarks, spending plans and clearly defined short term payment holidays where required.
3. Measure the consumer's Money EQ
In addition to measuring the consumer's financial status and past behaviour, it is essential to measure the consumer's Sense of Coherence. This will allow the credit provider to understand how the consumer is likely to react under specific conditions and avoid granting further of credit when it is used by the consumer as a short term solution to unplanned affordability challenges.