Using Flexys technology to manage extensions, PAYG options and arrears in Government-backed loans
In addition to the extraordinary support that the Bounce Back Loan Scheme (BBLS) has given to British businesses struggling during the pandemic, there is a growing concern that losses from the scheme might reach troubling proportions, a burden that ultimately falls on the British taxpayer. Lenders are employing a balanced process to ensure an empathetic consideration of business customers who may be experiencing very difficult circumstances, and a scrupulous approach to managing extensions and arrears in a clear, effective and appropriate way.
With the repayment of loans set to begin, BBLS lenders are preparing to manage high volumes of engagement as borrowers seek to access the Pay as you Grow (PAYG) options available to them.
Flexys is assisting organisations to address the following challenges:
- Making the process of extension and repayment as low-stress and convenient as possible for customers. Offering the right help at the right time.
- Adhering to the Financial Conduct Authority’s guidance on treating customers fairly and checking eligibility for forbearance. Treating business owners as three-dimensional human beings with their own unique and changeable set of circumstances.
- Ensuring digital systems are equipped with smart decisioning capability to correctly administer extensions and repayment options.
- Ensuring that the impact of each option is clearly explained to the customer to enable responsible decision making.
- Using an immutable audit trail that proves every possible action was taken to effectively and fairly manage loan repayments.
- Preserving service levels and managing capacity during a predicted volume spike, maximising the automation of mundane tasks and deploying human operators on tasks where they are essential.
As the UK’s economic situation evolves, banks will need to ensure that further Government actions or changes to regulatory guidance can be quickly assimilated into the customer journey.
Banking technology is notoriously complex, and outside of challenger institutions, analogue legacy systems of many decades standing still dominate. However, all banks can benefit from the most advanced and agile digital technology whatever their existing infrastructure, with minimum disruption and within challenging timescales.
At the end of the process, there are several critical outcomes:
- Customers for life- satisfied borrowers who feel they were treated fairly and had their needs addressed quickly
- Regulatory compliance- corporate reputation not only intact but enhanced
- Sustainable repayments- the maximum number of loans repaid