Equifax, the consumer and business insights expert, has expanded its relationship with Metro Bank, having been chosen as its consumer data partner. Metro Bank will use Equifax data to help assess its consumer credit applications and complete creditworthiness and affordability checks to help facilitate informed and responsible lending decisions.

Britain’s first new high street bank in over 100 years has extended its existing contract with Equifax and adopted Equifax Income Verification to assist with validating the income of customers applying for credit. The solution helps Metro Bank to assess the financial stability of a prospective borrower and their ability to repay the loan, helping it to ensure that its lending decisions are appropriate and in-line with regulatory requirements.

Equifax Income Verification works by reviewing the income declared by applicants and assessing the availability of funds in their current account over a six and 12 month period. The data is then analysed and used to assess prospective borrowers against Metro Bank’s eligibility criteria and verify that they are likely to have sufficient funds available to support repayments.

The Equifax Income Verification solution was developed to help organisations better respond to the Financial Conduct Authority’s (FCAs) responsible lending rules that have been introduced to help protect consumers. These rules require lenders to check that a potential borrower can afford their repayments.

Jake Ranson, Director of Banking and Financial Institutions, Equifax, says: “We have been working closely with Metro Bank to develop and implement tailored credit strategies to facilitate responsible lending in accordance with regulatory requirements, while at the same time increasing their processing efficiency. The adoption of Equifax Income Verification will help Metro Bank make robust and quick lending decisions, delivering a streamlined, efficient service for their customers.

Aileen Gillan, Chief Risk Officer at Metro Bank, says: “We are continuously developing our systems and processes to ensure that they are robust and meet the evolving regulatory requirements for the banking industry. At Metro Bank, we are focused on delivering unparalleled levels of service and convenience, and consistently great customer outcomes.

Using Equifax Income Verification helps us make more informed lending assessments without impacting the customer experience or business costs.”