Data, analytics and responsible lending solutions provider MogoPlus has launched a technology solution to help lenders deal with the increase in borrowers who are struggling to repay mortgages and other credit commitments.
The launch follows news that 1.6 million mortgage borrowers have applied for a mortgage holiday, and aims to address the spike in borrower hardship as a result of coronavirus’ impact.
The Hardship Management Solution (HMS) is designed to help lenders quickly identify distressed borrowers and subsequently prevent them from defaulting on their loans.
The solution is backed by analytics and can be set up in a day; MogoPlus is also offering it to lenders for free for the first 60 days.
It has been designed to work as a standalone solution, or to complement a lender’s existing processes.
The HMS uses transactional data to help lenders provide proactive customer support, and contains new data analytics specifically for lenders to manage hardship journeys.
The analytics provide early indicators and transactional triggers where customers may be trending towards potential hardship.
Neil Robinson, head of sales at MogoPlus, said: “Traditional hardship is often a ‘set and forget’ process with limited proactive and ongoing 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.
“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’ 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.”