Knowledge Bank, the largest database of lending criteria in the UK, has launched a new tool to help lenders and brokers meet the new Consumer Duty regulations.
The tool will help identify instances of borrower vulnerability and highlight underserved areas within lending policy and the wider market.
This will save lenders time and demonstrate best practice, while also providing evidence for the regulator.
According to Nicola Firth (pictured), CEO of Knowledge Bank, one of the most challenging aspects of Consumer Duty is identifying instances of vulnerability, which is not confined to a particular group or type of borrower.
Any borrower could potentially fall into the category of being ‘vulnerable’, and this tool will help filter results and expose the transient nature of vulnerability due to life events.
As part of their current Knowledge Bank subscription, brokers will be alerted to the areas of lending relevant to Consumer Duty, and additional questions or care may be needed with the case.
The same will be true for sales and underwriting teams who use Knowledge Bank’s KB PRO, providing a robust tool for identification and evidence of consideration being given to those customers.
Lenders using Knowledge Bank’s ‘Insights’ tool will also have the facility to interrogate the data to see the prevalence and frequency of searches in these categories and maintain a record of their responses. It will also give them a unique view of underserved areas of the market in relation to Consumer Duty.
Firth said: “We have worked closely with our lender, network and mortgage club partners to really understand what tools they need to ensure that the new rules are made as easy as possible to navigate.
“The clock is ticking on Consumer Duty coming into force and so we have worked hard to have the tools in place now so that both brokers and lenders are well served and provided for. This early delivery also allows lenders especially to hit the end of April deadline to have in place what they need ready for July.”
Lenders or brokers wanting to find out more about KB Pro or Knowledge Bank can visit their website at www.knowledgebank.uk.
The Consumer Duty regulations are set to come into force in July 2023.
