Industry Statistics
- 2023-Q3: 23.06% of consumers who have unsecured credit were late on repayments
- 2023-Q3: 21% of consumers who have secured credit were late on repayments
- 2023-Q3: 68,9% of credit applications are rejected
- Average Bureau Net Promoter Score: -38.5
The digital transformation within financial services has ushered in numerous new avenues for lenders to engage with their customers. Advances in Europe and North America have showcased the success of lenders who adopt more sophisticated underwriting strategies that leverage current data on affordability and behaviour-based insights.
Consumers are keen to establish relationships with merchants and businesses with whom they make long-term commitments, particularly in personal contexts like credit arrangements.
The above statistics highlight a fundamental issue in consumers’ perceptions and handling of their credit responsibilities, indicating a need for a significant reformation of the landscape
Advancements in Technology and Data Science
By harnessing cutting-edge technology and machine learning methodologies, Beam’s capabilities surpass mere document gathering and analysis. Instead, they enable the precise construction of a prospective borrower’s risk profile in real-time, utilising thousands of data points.
Beam’s product suite is intentionally crafted for simplicity, empowering users to quickly reach a conclusive ‘yes’ or ‘no’ decision.
Importantly, Beam integrates seamlessly into existing lending operations; it does not require applicants to navigate cumbersome procedures. Instead, Beam is implemented as a toolkit to enhance revenue and customer satisfaction.
With the potential introduction of Open Finance regulation in South Africa, companies like Beam are well positioned to accelerate big data, AI and API-first distribution models to provide lenders with a more accurate, real-time view of consumer’s financial behaviour, their financial position right now as well as being able to predict their financial behaviour in the future.
It’s time to recalibrate the credit industry
Our vision encompasses two strategies:
- Advocate for a revolution in loan decision-making, enhancing the economic landscape by broadening access for consumers with limited credit histories. By placing machine learning-driven assessments of affordability and financial standing at the heart of underwriting, we aim to ensure that loans are not extended to individuals who may not be able to manage them.
- Create a network that sustains lender-borrower relationships beyond the initial loan origination. This will empower consumers to make informed decisions regarding their credit commitments.
We intend to do this by developing best-in-class tools and product experiences, and by fostering a consumer-permissioned and lender-supported ecosystem. This ecosystem will not only comply with the regulations set forth by the NCR but will also be vibrant and dynamic, challenging the status quo and propelling the industry forward.
