Built for banks, non-bank lenders and lending teams.
Explore how an increase in approval rates could affect your lending business. Use your application volumes, take-up rate and contribution assumptions to estimate additional funded loans and their potential value. Instant scenario estimate. No contact details required.
Start with your current application and approval figures, then explore an approval-rate increase. See how take-up and contribution per loan affect the estimated benefit.
The calculator shows what an approval increase could be worth. A detailed assessment helps identify the relevant applicant segment, risk constraints and data needed to test that opportunity.
What happens next
Share your scenario and a little more about your lending process. Our team will review the request and discuss the next step.
The opportunity depends on who is approved, how many customers take up an offer and the contribution those loans generate after relevant costs and expected losses.
Applications, approval rates and take-up establish how many loans you fund today.
Your assumed approval increase shows how many more applicants might receive an offer and go on to fund.
Contribution per additional loan translates that volume into an estimated business benefit.
The calculator applies your assumed approval-rate increase to application volume, then uses the take-up rate to estimate additional funded loans.
Additional funded loans are multiplied by average loan amount to estimate lending volume, and by contribution per loan to estimate financial value.
An approval-rate increase is expressed in percentage points. For example, an increase from 40% to 45% is five percentage points.
Contribution should account for expected credit losses, funding costs and variable servicing costs. Model enquiry costs are shown separately where included.
Carrington Labs helps lenders assess applicants whose risk may not be fully distinguished by an existing score or policy.
Develop a lender-specific risk view around your product, borrowers and observed outcomes.
Assess a defined group of referred or narrowly declined applicants using relevant additional risk evidence.
Compare alternative approval or referral strategies while retaining control over risk appetite and final decisions.
Explore borderline applicant underwriting.
Learn about lender-specific credit risk models.
Move from an assumed approval increase to evidence from your own applicants. Once we’ve agreed the applicant population, risk constraints and data, we run the PoC and deliver the findings within 48 hours.
1
Define the applicant population, current approval approach and risk measures to compare.
2
Review available application, model and outcome information, and identify any gaps.
3
Evaluate risk separation and simulate relevant approval strategies within the agreed scope.
4
Assess the evidence, potential contribution and limitations before deciding what to test next.
The 48 hours start once we’ve agreed the scope and your data is complete and ready. The PoC covers the agreed scope; production deployment is a separate step.
An agreed PoC can assess where a different risk view may support changes to approval or referral strategies. Historical outcomes may not be available for previously declined applicants. The assessment will identify what can be measured and where further evidence is needed. Scope and deliverables are agreed before the 48-hour clock starts.
Explore the potential contribution, then work with Carrington Labs to test the opportunity within your risk constraints.
