Streamlining impecuniosity proof
Impecuniosity, within the context of car insurance and automotive credit risk, refers to the inability of a claimant to afford the hire of a motor vehicle without resorting to unreasonable sacrifices.
Proving whether a claimant is impecunious is critical. But, the traditional method of proving impecuniosity involves cumbersome tasks such as collecting paper bank statements, manually scrutinising transactions, and forming judgments based on limited information. This process is not only labour-intensive but also subjective and frustratingly inefficient.
At Atto, we’ve collaborated with many Credit Hire Organisations (CHOs) over the past two years. We’ve gained extensive experience in reducing the associated costs, time constraints, and friction involved in proving impecuniosity. Our efforts have taken a process that used to take days into one that now takes minutes.
By using open banking, a practice regulated by the Financial Conduct Authority (FCA), we offer a streamlined process for proving impecuniosity; benefiting both claimants and CHOs.
Understanding the term ‘open banking’
Open banking is a legislated practice that allows people to securely share bank account information directly with a trusted company. This data can range from sort code and account number through to categorised bank transactions that span the last 12 months.
For consumers, it means no more hassle of gathering piles of paperwork or waiting for drawn-out assessments to determine if they can afford car hire after an accident.
And for CHOs, it means instantly proving whether a claimant is financially strained, providing a clear picture of their spending, saving, and earning habits directly from their bank account.
How it works
1) To start the process, claimants are directed to the login page of their internet banking.
2) After the customer has logged in and consented, the CHO will be granted access to certain (read-only) information.
3) Atto then delivers a suite of insights on the claimant that are used to prove impecuniosity.
It's important to note that only companies authorised by the Financial Conduct Authority (FCA) can use open banking. Atto is one of these trusted entities, listed on the Open Banking Implementation Entity’s (OBIE) website.
Insights to prove impecuniosity
Atto offers valuable insights that CHOs can use to effectively demonstrate impecuniosity:
1. End-of-day balance: Our visual reports illustrate the cash flow of a specific account over a chosen period, highlighting financial trends and identifying potential distress signals.
2. Income verification: Verify how much each claimant earns across all income streams, whether it’s salaried wages, freelance earnings or benefits.
3. Income vs. outgoings: Our comprehensive reports provide a clear overview of a claimant's total income and expenditures, presenting a monthly average for easy assessment.
4. Atto account statement: Developed in collaboration with CHOs, our account statement delivers essential account holder information, encompassing up to 12 months of transactions, alongside the bank's name and logo, presented in a clear and concise format.
Atto’s platform and insights empower CHOs to effectively address the challenge of proving impecuniosity. With our user-friendly journey, proving impecuniosity becomes quicker, risks are minimised, and outcomes are enhanced for both CHOs and claimants.
To find how to start using Atto to prove impecuniosity, please get in touch here, or reach out to lee@atto.co
