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Instant insight into affordability with Open Banking Data
Affordability check for consumer credit and BNPL
The Cheqm Affordability Check is an advanced credit check solution for organizations working with consumer credit, BNPL (Buy Now Pay Later) and e-commerce. Using Open Banking data and traditional data from public sources, Cheqm provides a complete and up-to-date understanding of consumers' ability to pay. This enables organizations to make better and compliant decisions around creditworthiness, underwriting and risk management.
CCD2 legislation and the impact on lending
The Consumer Credit Directive (CCD2) sets stricter requirements for consumer credit providers. Organizations must be able to demonstrably determine whether a consumer can carry a financial obligation. This means that a traditional credit check is no longer sufficient. There is a need for a combination of creditworthiness, cash flow analysis and current financial data. The Cheqm Affordability Check helps organizations comply with CCD2 by providing real-time insight into income, expenses and financial obligations.
From creditworthiness to ability to pay
Whereas traditional credit checks focus on creditworthiness based on estimates using historical data, a modern affordability check focuses on actual ability to pay. Using Open Banking, Cheqm analyzes bank transactions over the past 180 days and maps consumers' actual cash flow. This makes it possible to accurately determine what a consumer can actually carry.
Open Banking and public data combined
The strength of the Cheqm Affordability Check lies in the combination of Open Banking data and traditional data from public sources. Open Banking provides insight into current income, expenses and cash flow, while public data provides context on historical behavior such as payment behavior, home ownership and possible insolvencies. This combination creates a complete and balanced risk profile.
Applications of the affordability check.
The Cheqm Affordability Check is used within onboarding, credit underwriting, limit setting and collections. This creates a consistent and data-driven approach across the customer lifecycle.
Who is this relevant to?
The Cheqm Affordability Check is designed for organizations working with consumer credit:
BNPL & e-commerce; test directly at checkout whether a consumer can actually carry the installment purchase, so you retain conversion and reduce risk.
Telecom providers; before entering into an appliance loan, it is essential to test whether the consumer can pay the monthly installment for the appliance.
Lenders; use up-to-date cash flow insights to make more informed underwriting and limit decisions.
Private lease (cars); determine whether a consumer can structurally bear the monthly lease obligation based on actual income and expenses.
Fintechs & platforms; integrate real-time affordability checks into digital customer journeys for faster and compliant onboarding.
Schedule a demo of the Cheqm Affordability Check
Want to see how a modern affordability check works in practice? Schedule a demo and discover how Cheqm helps improve credit decisions, reduce risk and comply with CCD2 legislation.
