With most new borrowers joining online, it’s harder than ever to get a full picture of an applicant. This problem can be compounded when a lender is expanding into an unfamiliar area. As a result you don’t know much about the applicant or the place where they live.

To help you know new applicants better, the decision engine includes applicant demographics to provide insight into:

Because this information relates to the postcode area where the applicant lives it does not mean with certainty that applicant shares those characteristics.

This feature uses government and credit bureau data to build up an accurate and rounded picture of a person and their surrounding neighbourhood.

The example below shows what is returned in the NestEgg dashboard. The content in bold represents the variables that will change from applicant to applicant. Each of these variables are described below.

Most people living in this area belong to the socio-economic group, Content Communities. There are many households with an income of between £50k and £75k. In the applicant’s postcode area these are predominantly Affluent Young Professionals. The level of economic activity is very high. On average, houses are worth 110% of the national average.

Most people living in this area belong to the socio-economic group, Family Value. There are many households with an income of between £10k and £20k. In the applicant’s postcode area these are predominantly Poorer Terraced Communities. The level of economic activity is low. On average, houses are worth 40% of the national average.

e.g. Most people living in this area belong to the socio-economic group, Content Communities.

Each individual is allocated an overall socio-economic group, providing insight into the household characteristics of the applicant. These are presented in table 1. Social class is based on traditional classifications detailed in table 2.

(click to enlarge any table in this article)

e.g. There are many households with an income of between £50k and £75k.

Estimated income for the postcode area is provided. This should not be used to verify income because it is an average for the neighbourhood.

For the year ending 2021, the average household income in the UK was £31,400. In the final column in table three each income group is measured against this average. So if the household income is estimated at £31,400 the index would be 100. If the average income was £62,800 the index would be 200.

e.g. in the applicant’s postcode area these are predominantly Affluent Young Professionals.

Each of the income groups in the above table are broken down into six income types as follows:

e.g.,The level of economic activity is very high.

This is an estimate of the level of economic activity in a given area. However, it is not an indicator of unemployment. To be economically inactive a household must meet all of the following conditions:

e.g., On average, houses are worth 110% of the national average.

The national average house price is shown as 100%. If the average house costs £300,000 and the result is 110%, then the property is likely to be worth around £330,000 (£300,000 multiplied by 110% or 1.1).

Next: Document request