Pancredit sees demand from banks grow

The Yeadon-based firm said that its figures for the first quarter of 2013 were “equally strong” and indicate that Pancredit’s growth will continue this year.

Pancredit, which employs 40 people, said it has a pipeline of secured work that extends well into 2014.

It declined to disclose profit figures, but said that it invests between 20 to 30 per cent of its annual profits back into research and development.

The company said that its performance has been driven by a “significant increase” in demand from banks, financial institutions, intermediaries and commercial lenders for software systems “capable of promoting responsible lending and enhancing the service experience they deliver to customers”.

“After the financial crisis, PPI mis-selling and Libor rate-fixing scandals, the credit and lending market knows it has a big job to do to restore public confidence,” said Peter Constance, founder and managing director at Pancredit.

“The determination of major banks and financial institutions to tackle this issue is driving demand for systems like ours, which hard wire responsible lending into their nationwide operations.”

Pancredit said that its primary source of revenue is from ‘Core pancredit’, the firm’s loan applications, administration and collections system, used by Lloyds Banking Group, Ikano, The Open University and MotoNovo Finance.

But it said its decision to enter new markets with tailored offerings has stabilised the business and enabled it “to prosper despite the torrid economic conditions”.

Sales of MADE, Pancredit’s software-as-a-service decision engine, which enables price comparison sites to source loan products for consumers, have grown “swiftly” in the last 12 months, said the firm. MADE is currently used by around 20 sites, including gocompare and knowyourmoney.

Mr Constance added: “Loan collection systems will become increasingly important in the coming years and are a key focus for us.

“Interest rates will inevitably rise, putting pressure on the consumer’s ability to meet their various loan repayments, leading many to default. Banks and financial institutions that are serious about responsible lending will know that the ethos goes well beyond a decision to grant or deny a loan application.

“When they are faced with an increase in defaulting customers they will need to deepen their understanding of their customers’ issues in order to act responsibly. Our systems will be critical in helping lenders obtain a clearer picture of their financial circumstances.”