The Aire Credit Insight Suite is live and has big ambitions.
Specifically, it aims to help lenders embrace millions of borrowers excluded from UK credit market.
Aire says it offers UK lenders greater decision-making power when it comes to assessing customers for credit risk and affordability.
For example, Aire Credit Insight Suite scores customers with limited or non-existent credit histories.
Moreover, it optimises decision-making across acquisition, customer management, pre-arrears and collections.
The Aire Credit Insight Suite operates across the customer lifecycle.
As a result, as many as 8.3 million UK consumers currently excluded from large parts of the market can benefit.
Aire Credit Insight Suite: how it works
The service is developed to integrate seamlessly and at scale into lenders’ existing credit application and decisioning systems.
And so it improves lenders’ ability to assess credit risk and affordability by providing a unique range of insights. This is based on first-party data.
Aire gathers detailed financial and lifestyle information from consumers through what it terms an Interactive Virtual Interview.
This interrogates the data for accuracy using sophisticated machine learning algorithms. It then validates to calculate scores that inform decision-making across the lending lifecycle.
Aire says that its potential has been proven through a series of evaluations with UK lenders. These include digital retailer N Brown and Toyota Financial Services.
Aire: more than $10bn of credit scored to date
Early results include: lenders using Aire at the point of of customer acquisition boosted acceptance rates by up to 14%. And this is without increased marketing spend, risk appetite or default rates.
In collections trials, Aire helped lenders engage with customers. Moreover, it accelerates the recovery of outstanding credit by 25% percent with no increase in referrals to debt-collection agencies.
The Aire Credit Insight Suite process takes three to five minutes. Aire says that up to 91% of applicants referred to Aire’s Interactive Virtual Interview complete the process.
Aneesh Varma, founder, CEO at Aire, comments: “Aire is bringing greater equilibrium to consumer credit. It fills a significant knowledge gap for lenders, providing them with brand new data directly from the consumer.
We know that a reliance on only historic data falls down when lenders score consumers without detailed credit histories. It is this lack of evidence that stops accurate decision-making.
“By putting the consumer in control, we are solving the thin-file problem for lenders and providing new insight. This improves marginal decision-making, providing lenders with a faster, fairer way to assess credit risk and affordability.”