Broadstone has launched a new Affordability Health Check for lenders.
The service helps lenders assess, benchmark and enhance their affordability framework in order to improve outcomes and streamline operational efficiency.
Broadstone’s proposition will review firms’ affordability framework and governance, assess affordability methodologies, data sources and controls before finally benchmarking their approach against peers and regulatory expectations.
Following this assessment, lenders will receive a concise Affordability Health Check Report with prioritised recommendations, a practical improvement roadmap and indicative implementation costs and support options.
The offering arrives amid increased focus on affordability outcomes and Consumer Duty scrutiny. Meanwhile evolving affordability data and verification techniques are enabling lenders to take a more bespoke approach to assessments.
The Affordability Health Check is targeted at firms across the motor finance, consumer lending, credit union, specialist finance and Buy Now Pay Later (BNPL) sectors.
Harry Charalambous , Principal in the banking and credit advisory division at Broadstone, said: “Affordability assessments are a critical part of responsible lending, but many firms are working with frameworks that have evolved incrementally and may no longer reflect current regulatory expectations, or take advantage of the latest tools, techniques and analytical approaches.
“With Consumer Duty increasing the focus on customer outcomes, lenders need to be confident that their approach is robust as well as being supported by effective governance and controls. Advances in data and verification techniques provide an opportunity to make assessments more accurate and tailored to individual circumstances.
“Our Affordability Health Check gives lenders an independent view of how their framework compares with peers and regulatory expectations. It then enables them to identify practical improvements that can strengthen customer outcomes and increase operational efficiency for firms across a wide range of sectors within the lending industry.”
