April 26, 2017
In general, responders are supportive of the view that the regulations provide a more open and level playing field for both lenders and consumers.
It is interesting to note that over 70% of respondents believe there will be at least some, if not a major impact from the regulations on sales and growth in the short term. Perhaps surprisingly there is a split between those who see the changes offer a market opportunity and those who perceive it more of a threat. In terms of impact on client activity, of those respondents who believe the regulations will change their approach to client activities, there are more who see this as a market opportunity (34%) compared with those who see it as a threat (23%).
While more than 50% of respondents admit to not having scorecards in place nor used in day to day operations, the majority of respondents feel comfortable and ready to implement the new regulations in to an automated system, with nearly 70% stating that the changes can be accommodated easily.
The changes though, do not come without their challenges, with over 60% stating that documentation and workflow is the key challenge. In addition with a high number (50%) also recording concern with regard to data limitations perhaps the readiness and ease of implementation may prove to be more demanding than first anticipated. The data limitation may point more to internal data and operational usability, given that over 90% of respondents indicated that external data are at least somewhat sufficient to support the calculation of the newly required variables.