pbVerify introduces Affordability Assessment Service

We have added another rung to our ladder of credit risk management products, so your business can make highly informed lending decisions and maintain a healthy bottom line.

As a credit bureau specialising in credit risk management, we know how important it is for lenders to have a strong and comprehensive portfolio of products that enables them to make sound decisions and maintain profitable operations.

That is why we have introduced yet another solid credit risk management product, the Affordability Assessment Service, which is a web service that gives lenders fast and accurate information indicating customers’ ability to fund a proposed credit instalment in terms of a new credit agreement.

How it works

pbVerify’s Affordabiity Assessment Service works like this:

  1. The system uses a consumer’s gross and/or net income;
  2. Calculates the consumer’s necessary expenses (minimum living expenses as per National Credit Act (NCA) regulations);
  3. Evaluates the consumer’s total monthly debt repayment obligations and returns the consumer’s available income (discretionary Income);
  4. This returned information indicates the consumer’s ability to pay the proposed credit instalment in terms of a new credit agreement.

Why it’s important

For a business that offers credit in any capacity, the importance of conducting risk management processes cannot be undervalued.

Business tycoon Warren Buffett famously said, “Risk comes from not knowing what you’re doing.” Our latest credit risk management product offers businesses a further means of “knowing what they are doing” – or in other words, knowing who they are lending to.

The Affordability Assessment Service can be used by any subscriber required to perform an Affordability Assessment as per NCA, and offers significant benefits:

  • Automatic determination of a consumer’s gross income, where the value is unknown.
  • Automatic determination of a consumer’s Net Income through the application of the relevant tax tables.
  • Automatic inclusion of known bureau expenses.
  • Assistance with decision-making during the customer acquisition phase.
  • Compliance with the NCA.

Want to read more about our new Affordability Assessment Service? Visit our website HERE or download the brochure HERE.

REFERENCES
  1. Polity: National Credit Act – New Affordability Assessment Regulations
  2. Justice.gov.za: National Credit Act [No. 34 of 2005]
  3. pbVerify – Affordability Assessment Service brochure