Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges have recently launched the Affordable Credit Challenge, in the hopes of creating incentive for community lenders and fintech companies to partner up and develop solutions to help improve affordability within the lending industry. The funding organisation has claimed that high-cost credit loans do have “a role to play in the market” however, “too many people have been turning to these lenders […] when it has not been appropriate for their own personal situation.” Whilst community lending and other not-for-profit lenders can provide a better means of borrowing for people in particular financial situations, studies have shown that many […]

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Payday lender PiggyBank under investigation by the FCA

The UK’s financial watchdog has recently started investigations into the payday lender PiggyBank. The Financial Conduct Authority (FCA) are examining the lender’s assessment process of its borrower’s creditworthiness. This creditworthiness determines if a borrower is “worthy” of being lent a loan by the providers, and often has much lower requirements than the standard high-street providers. Payday, and other forms of high-cost short-term (HCST) lenders set their credit-worthy bar so low as their main clientele are those who have been rejected from the main high-street providers due to their poor credit rating. As a result of accepting mainly those with a […]

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