Aire has launched a new credit insight service to help lenders assess affordability based on a virtual interview with customers.

The Aire Credit Insight Suite has been piloted with a number of UK firms and is now being promoted to the wider market. 

The company says it can help to score those with limited or non-existent credit histories and improve lending decisions at the point of sale, as well as providing intelligence on the borrower’s position throughout the course of the loan, prior to arrears occurring and before any subsequent collections action is taken.

Aire says it gathers detailed financial and lifestyle information from consumers through an interactive virtual interview lasting three to five minutes.

Aire then interrogates the data for accuracy using machine-learning algorithms and validates it to calculate scores that inform lenders decisions from the point-of-sale throughout the life of the loan. 

The launch follows pilots with digital retailer N Brown and Toyota Financial Services.

Aire says that lenders using its service were able to boost acceptance rates by up to 14 per cent without increasing marketing spend, risk appetite or default rates.

In collections trials, Aire says it helped lenders engage with customers and accelerate the recovery of outstanding credit by 25 per cent with no increase in referrals to debt-collection agencies.

Aire chief executive and founder Aneesh Varma says: “Aire is bringing greater equilibrium to consumer credit by filling a significant knowledge gap for lenders, providing them with brand new data directly from the consumer.

“We know that a reliance on only historic data falls down when lenders score consumers without detailed credit histories – it’s this lack of evidence that stops accurate decision-making. 

“By putting the consumer in control, we are solving the thin-file problem for lenders and providing new insight to improve marginal decision-making, providing lenders with a faster, fairer way to assess credit risk and affordability.”