Standard Life Bank hopes to increase consistency in its lending decisions and reduce its exposure to fraud risk through an agreement with IT company, Experian, to supply risk management services for its mortgage business.
The system is expected to allow the bank to make accurate and consistent lending decisions while allowing more complex risk strategies with less potential for bad debt. The business banking and application processing system, includes third-party data compliant credit bureau information and predictive scoring. It also includes Detect, an anti-fraud system that identifies fraudulent mortgage applications in real time.
Vinnie O’Brien, company secretary at Standard Life Bank, said: ‘The solutions provided by Experian will be utilised to help us implement fast and accurate decisions with regards to our mortgage business.’ He added that the bank would: ‘…target new business and segment its existing customer base to ensure it tailors the most appropriate offerings to customers.’
The move follows Standard Life Bank’s ambition to move out of the niche mortgage lending market and enter the mainstream. It has recently entered buy-to-let and offset markets and expanded its fixed rate range. O’Brien added: ‘These are exciting times for Standard Life Bank and with a new regulatory environment on its way this is a real time of change.’