(PR.co.nz) Alternative finance is a growing phenomenon disrupting the business model of traditional providers of consumer and commercial finance. 247Moneybox is at the vanguard of this trend harnessing the wealth of data available to make better faster lending decisions for a cash loan and is now bringing its operation to New Zealand.
Having established itself in the UK, online consumer cash loans operation 247Moneybox has grown at a remarkable rate recognised by key industry publications and awards such as Red Herring 100, Media Momentum and a finalist for the prestigious Credit Today Alternative Consumer Finance Lender of the year 2013.
Underlying this success is the innovative approach to credit employed at the heart of the operation. 247Moneybox brings class-leading analytics and technology as well as a commitment to responsible lending. The model is able to take more than just a credit score into account, and is able to provide cash loans to customers under appreciated by traditional ‘one size fits all’ underwriting techniques without increasing the default rate.
“Risk analytics are at the core of our business. Our decision engine allows us to make fast and accurate credit decisions, often within minutes of an application being made,” said Mark Hannay, 247Moneybox’s COO. “We’ve developed a number of algorithms fed by multiple data streams, from on-site behavioural analytics, to traditional credit reference agencies, and social media feeds, so our risk score cards are highly adaptive and always up to date.”
Traditional methods of underwriting focus on a few attributes – credit score, income, and repayment history, among others. The traditional model works well for lending large amounts over long periods of time, but lacks predictive precision for short-term finance – “applying traditional underwriting techniques [to consumer credit] is like using a sledgehammer to thread a needle – it’s fundamentally the wrong tool,” said Hannay. 247Moneybox uses a model that, by taking thousands of pieces of data into account, is able to make accurate credit decisions in minutes.
247Moneybox brings more than just technology and speed to the Kiwi consumer cash loans market. “Responsible lending is another focal point across consumer credit now in the wake of the recent financial crisis and rightly so,” commented Hannay. “We are always striving to make our service more open, honest and transparent.” The firm regularly speak with their customers, trade bodies and debt charities.
Hannay concluded: “These practices are about taking the initiative and demonstrating that the industry can respond to the issues and challenges relevant to all credit providers. We’re aware of the perception of the industry and feel the only way to go about changing it is by setting a precedent and hope that others will follow.”
Media Release on 1 July 2014
Media Contact
247Moneybox
Email: contact@247moneybox.co.nz
Phone: (09) 887 3323
Website: http://www.247moneybox.co.nz