Jemima Moore

May 10, 2022

3 Ways Credfin Determines Customer Financial Stress 

At times of financial hardship, many Australians will turn to personal loans. When someone does not have the funds to pay for goods and services upfront, and with digital lending as seamless and available as it is, lenders have the chance to put their best foot forward for a customer. Credfin’s products and metrics are able to identify consumer risks and financial stress to help vendors provide a tailored experience for their customers.    

Enhanced dishonour matching 

Enhanced dishour matching is an advantage unique to Credfin. A direct debit dishonour is the failure of the client to maintain sufficient funds to honour the payment and is important to identify the borrower’s willingness to service repayments and likelihood of a payment dishonouring. Through our smart technology, we are able to identify any unlabeled dishonours, label them, and categorise them under the relevant credit provider. Without the correct labelling of the dishonour, credit providers may not detect that a direct debit dishonour has occurred for another credit provider, leading to an inaccurate risk assessment of the client.

This is an important factor in determining a consumer’s financial stress. Through identifying a client’s dishonours, a vendor can assess the risk of a client before onboarding them(?) or tailor a more personalised lending experience for those needing hardship considerations.

Risk Metrics

Our risk metrics (AM2082, AM2083, AM2085, AM2089, AM2049, AM2066, AM2069, AM2052, AM2007, AM2134, AM2063, AM2064, AM2091, AM2092) are another way we can determine whether a client is under financial stress. To do so, the vendor can set tolerance ranges based on statistical information, such as decrease in income, increases in dishonour rates, withdrawing a high percentage of funds on the same day as the income, etc. Our extensive risk metrics help vendors understand their client’s financial situation on a deeper level. 

Gambling Metrics 

The Australian Institution of Health and Welfare estimates that, in total, Australians lost $25 million on legal forms of gambling. This figure is staggering, and it’s clear many individuals are needing a bit of extra cash. 

Our confirmed gambling metric, AM2005, categorises the transactions that have taken place at confirmed gambling establishments (casinos etc). The inferred gambling metric, AM2015, uses smart transaction logic to determine other potential avenues of gambling. We identify cash withdrawals which match a predescribed pattern of withdrawals to be identified as funds which are being used for gambling. 

Whether this alert serves the vendor a more in-depth analysis for risk assessment reasons, or gives them a chance to reach out with a tailored experience for the individual, our gambling metrics are beneficial for both consumer and vendor.  


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