Flexys and PwC Launch Smart BBLS Solution

Flexys has joined with global professional services provider PwC to provide banks with a smart digital solution to manage extensions to, and repayments of, Government-backed loans.

Flexys and PwC have developed a platform that helps banks to manage customer requests for ‘Pay as you Grow’ (PAYG) options on their Bounce Back Loan (BBLS). Under the terms of these loan agreements, borrowers are due to start full repayments of the loans from May 2021.

Pay As You Grow enables businesses who have started repaying their Bounce Back Loans to

• request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%.
• reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their loan.
• take a repayment holiday for up to six months.

The digital BBLS management platform uses smart technology and data analytics to help banks make more effective decisions in less time, which means borrowers are able to quickly and easily request one of the options available to them.

The platform provides banks with a full and compliant process, including effective mechanisms to help identify customers in challenging circumstances and those who are eligible for forbearance, in line with the requirements of the Financial Conduct Authority’s guidance. It will also provide the evidence, via an audit trail, to ensure that all possible measures have been taken to minimise potential taxpayer losses from the scheme.

Stephen Tebbett, PwC Partner, commented,

“1.5 million businesses have borrowed more than £44 billion through Bounce Back Loans and with the government giving these businesses a range of options regarding repayments, we wanted to ensure that our banking clients have a solution to enable them to effectively manage this process seamlessly for their own customers. We selected Flexys as our partner to develop this specific solution as it puts the end customer at the heart of the solution. The technology is an effective solution that helps both banks and their customers, and I’m confident that it can be applied to a breadth of scenarios in the future.”

Flexys Chief Executive Officer, Jon Hickman said,

“Our relationship with PwC combines the very best of both organisations to deliver a convenient and fair solution for BBLS lenders and their customers. The combination of PwC’s extensive expertise in the banking sector, and the specialist debt management technology we build at Flexys, will enable PwC’s clients to manage Government-backed loans in a compliant and efficient manner.”