Fintech firm MOGOPLUS has launched a new technology solution to help lenders provide support to borrowers who are struggling to pay their mortgages or other credit commitments during the Coronavirus (COVID-19) outbreak.
Lenders are dealing with a huge spike in the number of borrowers requesting support due to Covid-19, with 1.6 million mortgage holidays having already been granted, according to trade body UK Finance.
It means that lenders are having to deal with potentially overwhelming workloads, not only in assessing hardship cases but also subsequently managing them.
To help lenders manage this spike, MOGOPLUS, a fast-growing financial services software provider, has today launched its Hardship Management Solution (HMS).
Crucially, MOGOPLUS is offering it to lenders for free for the first 60 days of use and it has been designed to work as a standalone solution, or one which can complement a lender’s existing processes.
It can also be up and running within a day with the full hardship analytics suite available via API or alternative outputs, meaning lenders can react quickly during these testing times.
The HMS uses transactional data to help lenders provide proactive customer support and therefore reduces the risk of a borrower going into default.
It also contains a new set of data analytics designed specifically for lenders to manage hardship journeys for the growing number of customers most affected in this time of crisis.
Using MOGOPLUS’ Feed Data API or Open Banking capture methods, the HMS receives customer transaction data which is then fully categorised and structured by the MOGOPLUS analytics engine.
From this data, outputs include a range of key insights and hardship ‘flags’, enabling customer support teams to view and track income, expenses and liabilities both when hardship is requested and at regular stages of the hardship journey.
The analytics also provide early indicators and transactional ‘triggers’ where customers may be trending towards potential hardship, so a highly pro-active prevention-based position can be taken by the lender.
Example hardship analytics include:
- An automated and instant Statement of Financial Position
- Validation of lost income and new Government payments
- Detailed breakdown of expenses with full trend analysis at set points during the hardship journey
- Identification of additional undeclared income and liabilities
Neil Robinson, Head of Sales for MOGOPLUS, said: “Traditional hardship is often a ‘set and forget’ process with limited pro-active and on-going engagement from the banks to monitor transactional behaviour and prevent hardship escalating to default. With the use of real time data and our ability to structure it into meaningful hardship insights, we can now enable a new approach which reduces operational cost and risk for the lender whilst also opening up opportunities for increased levels of customer experience and engagement.
“By using real time transactional data within the hardship journey, the lender can provide a personalised hardship program for each individual customer based on their unique circumstances and changing financial position”
The solution is fully supported by MOGOPLUS’s PCI-DSS attestation and comprehensive data security architecture, and lenders can be assured that all sensitive data is protected at the highest level.
The solution is fully modular with a range of different units, which can be tailored to the specific use case and type of hardship program.
Robinson added: “Whilst the solution can be used for initial assessment of hardship applications, we understand that lenders are accepting the vast majority of current applications with none, or low levels of assessment, as the impact of COVID-19 on many customers lives has taken hold so quickly. In these cases, there will be more emphasis on the effective management of those in hardship over the coming months, and this is where we believe we can also help.”
“Early discussions with MOGOPLUS’s existing lending customers have been overwhelming and we are already integrating into two existing hardship workflows via one of our key strategic partners.
“In order to support lenders and their customers during this challenging time we are making the solution available for free from today for any lender to use for the first 60 days as part of the MOGOPLUS COVID-19 Industry Support Initiative”.