Record growth for pancredit

LOAN administration software firm pancredit has posted record results for 2012 and said it is “well on track” this year after a strong first quarter.

In 2012, Leeds-based pancredit’s annual turnover exceeded £3.8m, representing a 40% year on year increase over 2011.

First quarter figures for 2013 were equally strong and indicate that pancredit’s growth will continue this year, the company said.

“Revenue increases continue to track and the firm has a pipeline of secured work that extends well into 2014,” it said.

It said the strong 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.

“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 nation-wide operations. By deepening the suitability assessment that is performed on customers applying for loans, our systems ensure that the lender’s final decision is based on a crystal clear picture of the applicant’s financial circumstances. By automating this work, we also help lenders cut costs and reduce turnaround time, enabling them to deliver a more responsible lending service to customers in a fraction of the time conventionally required.”

While pancredit’s primary source of revenue is from Core pancredit, the firm’s flagship loan applications, administration and collections system, used by major lenders such as Lloyds Banking Group, Ikano, The Open University and MotoNovo Finance, 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 better source loan products for consumers, have grown swiftly in the last 12 months and the solution is now driving the evolution of intelligent whole-of-market credit sourcing for the aggregator sector.

MADE is currently used by around 20 sites, including gocompare.com and knowyourmoney, and over the course of the next six months will be rolled out to several of the other leading brand names in the market.

panintelligence, a business intelligence dashboard solution for data rich organisations, continues to gain traction in a range of markets, including automotive, education and service management, said pancredit.

pancredit, which declined to disclose profit figures, said it invests between 20-30% of its annual profits back into research and development.

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