“ AFFORDABILITY IS THE NAME OF THE GAME DURING AN ECONOMIC CRISIS ”
PAUL RANDALL CREDITINFO
are targeting will narrow , so lenders need to do everything they can to collect as much relevant data as possible to keep their group of target customers as broad as possible .”
He warns that lenders must either become more cautious or pass the risk onto borrowers :
“ A trend we ’ ve seen before during economic downturns and recessions is larger financial institutions tightening their risk profiles and awarding fewer loans , while smaller financial organisations might try to prioritise the customer experience by not clamping down as hard but charging more for repayments in an attempt to mitigate the added risk .”
Whatever approach they choose , lenders must do something to show willing and play their part in any financial crisis , as Neil Kadagathur argues : “ The industry needs to work more closely with external stakeholders … to boost financial education , lend more responsibly and improve transparency . All these steps will provide more support for borrowers at a time when many people ’ s finances are under pressure .”
fintechmagazine . com 125