Metrics Monthly | November 2020 | UK Edition

Metrics M onthly November 2020 | UK EDITION

In this issue DIGITAL DELAY

Consumers lose patience with mortgage lenders who force them down analogue application routes

In this issue Welcome Page 03

In the news Page 04

The next logical step Page 06

Spotlight on: virtual events Page 08

Cost effective origination Page 10

Awards nominations Page 11

Digital delay Page 12

Case study Page 14

02 | Metrics Monthly

November 2020 | UK Edition

Welcome

Welcome back to another issue of Metrics Monthly! With Lockdown 2.0 in full effect in the UK, there’s still plenty of news and insights to keep your time occupied in this issue of Metrics Monthly. The prospect of a vaccine for COVID- 19 potentially being ready before the end of the year has our hopes high this month, but with increased fintech usage during the pandemic, regulators have higher expectations for banks and other organisations, which you can read about on page 4. Also in the news this month is the huge surge in house price growth , despite the current circumstances, and what financiers expect to happen next. Fur - thermore, we’re sharing the news that BOX Processing have integrated with LendingMetrics to provide clients with a first class service.

Our headline thinkpiece looks at why consumers are losing patience with mortgage lenders who force them down analogue application routes, and why lenders need to adapt to digital applications or run the risk of becom- ing irrelevant as the world moves on without them. Read the full Digital Delay article here. We’re also shining the spotlight on virtual events, as many virtual confer- ences have made the transition to being hosted online, but will this new adoption be here to stay? Find out in our article on page 8. If you enjoy this issue of Metrics Monthly, and want to stay up-to-date with industry news and highlights, make sure you subscribe on our website to get issues sent directly to your inbox.

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Metrics Monthly | 03

In the news

Increased fintech usage during the pandemic leads to higher expectations from regulators

A new survey by the World Bank and the Cambridge Centre for Alternative Finance shows that 45% of banks and financial regulators have prioritised their fintech work, and many are intro - ducing new measures as a result of the growth in the sector. The pandemic has resulted in an increase in the adoption of fintechs, which also comes with new risks for the regulators to address. During the first national lockdown, we saw a huge shift to more consumers using digital finan - cial services, and now banks are finding the need to create digital banking frameworks. According to the Fintech Times, 57% of consumers now prefer to use online banking tools and access their finances

digitally, largely as a result of the social distancing measures brought in. But with 90% of survey respondents citing that cybersecurity is the main chal- lenge for them, regulators are having to act fast to launch digital initiatives and adapt to the new circumstances. As regulatory expectations increase, fintech organisations may need to upgrade their internal compliance procedures, for example by using AI to monitor their fraud and anti-mon- ey-laundering processes. By rising to meet these expectations, fintechs could better solidify their position with regu- lators, becoming more involved in the conversations that essentially govern everything they do.

The LendingMetrics team returns to working from home

Following the announcement of a national lockdown, the team have once again returned to fully working from home.

Having successfully been operating with a limited number of staff in the new office, which allowed for adequate social distancing and COVID-secure measures, the company again closed its doors so staff could follow the new lockdown measures appropriately. LendingMetrics was well prepared for the first lockdown in March, and made the decision for staff to work remote- ly before the original announcement even took place. This time is not much different, as the company’s plans for business continuity were well prepared and audited ahead of the government’s decision. LendingMetrics were able to implement the remote working plan

easily and efficiently, allowing the team to continue to deliver high standards to customers. With the lockdown expected to last a month, but the possibility of it being longer, it was important for the company to put staff wellbeing first. Regular com - pany-wide calls were re-introduced, to ensure any issues are raised and responded to, as well as keep staff up-to-date with any changes or devel- opments in the company. The virtual meetings create a sense of camarade- rie amongst employees, further uniting the team in a difficult and uncertain time.

04 | Metrics Monthly

November 2020 | UK Edition

LendingMetrics are delighted to announce their integration with BOX Processing LendingMetrics are delighted to be working with BOX, a forward-thinking partner in the credit solution market.

House price growth surges

Despite the country entering a second lockdown, house prices are rising rapidly as economic growth slows and uncertainty looms.

This new relationship will see the range of LendingMetrics products - including the multi-award-winning ADP product - integrated with the BOX platform to provide clients with a first class experience. The LendingMetrics and BOX open- ly-connected API suites allow for an efficient and seamless assimilation to a tested solution, providing clients with the confidence that they will be able to launch quickly and without the teething issues that are often associated with new integrations. About the integration, LendingMetrics’ Managing Director David Wylie said: “This new integration with BOX Process- ing allows us to provide our clients with more options for their lending proposi- tions. We’re delighted to be working with such a progressive company that have set themselves apart in their sector and we look forward to seeing the relation- ship continue to grow.“ Rob Macmillan, Director BOX Process- ing, added: “We’re excited to be working with LendingMetrics on this new collab- oration. We often find that our clients love our solution, but are also keen to find a supplier who can provide credit information and a decisioning solu- tion. This partnership allows us to fulfil our clients’ needs, without us breaking away from our core business.”

About BOX Processing BOX provides an API driven credit platform enabling neobanks and fintechs to generate revenue by providing innovative lending solu- tions to their consumer and SME customers. Combining conveni- ence of card transactions with flex - ibility of instalment loans enables customers to make purchases when needed but spread cost of repayment to suit budgets and income. API integration coupled with a simple product configuration mean new payment solutions can be created days rather than months. The BOX platform supports Visa and Mastercard cards through integration with card processors such as Tribe, payment providers such as GoCardless and Lending- Metrics for real-time credit risk assessment.

House price growth has accelerated across Europe, even amidst a global recession caused by the COVID- 19 pandemic. The annual rate of increase across OECD countries has risen to almost 4 per cent, with even faster rises in some European coun- tries, in particular Germany. Prices reached record highs in October in the UK, possibly due to government support schemes and tax breaks on housing sales. Govern- ment schemes, such as the stamp duty suspension, have meant that the usual economic models have been largely defied. Senior Econo - mist at HSBC Chris Hare said: ‘We had been expecting house prices to fall, [so] we’ve all had to increase our forecasts’. The surge comes with concerns however, as some financiers wonder if it’s only a matter of time before the economic fallout catches up with the soaring market. Unless an economic recovery begins soon, we could see a sudden tightening of the mortgage market, which could drastically drag down house prices.

+44 (0) 2394 211010 | www.lendingmetrics.com

Metrics Monthly | 05

The next logical step

Propensio Finance have selected LendingMetrics’ Auto Decision Platform for their assisted decisioning

Propensio Finance , the specialist lender in the aspirational lifestyle sector, have adopted Lendingmet- rics’ Auto Decision Platform (ADP) to augment their credit decisioning process. Having used OpenBankVision (OBV) by the same provider since 2019, Propen- sio are now implementing automated decisioning to leverage the bank trans- action >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16

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