PwC has joined up with software specialist Flexys to provide banks with a smart solution to manage loans offered to their customers as part of the government’s initiative to enable businesses to maintain financial stability during the Covid-19 pandemic.
Flexys and PwC have developed a platform which helps banks manage customer requests for ‘Pay as you Grow’ (PAYG) options on their Bounce Back Loan (BBLS). Under the terms of these loan agreements, borrowers are due to start full repayments of the loans from May 2021, with lenders informing borrowers of the PAYG options from this month.
However, PAYG enables businesses who have started repaying their Bounce Back Loans to tailor repayments to suit their circumstances, with options to request an extension of their loan term to 10 years from six years, pay interest only for six months or take a repayment holiday for six months.
Flexys, a debt management technology specialist, is working with PwC to provide a convenient digital service that will help banks manage the uplift in customer support that has followed the introduction of PAYG, given the imperative on banks to service these loan portfolios while facilitating the requests of their customers.
The platform uses smart technology and data analytics to help banks make more effective decisions in less time, which means borrowers are able to quickly and easily request one of the options available to them.
The solution has been designed to provide banks with a full and compliant process, including effective mechanisms to help identify customers in challenging circumstances, and those who are eligible for forbearance, in line with the requirements of the Financial Conduct Authority’s guidance. It will also provide the evidence, via an audit trail, to ensure that all possible measures have been taken to minimise potential taxpayer losses from the scheme.
Stephen Tebbett, PwC Partner, commented:
“Around 1.5 million businesses have borrowed more than £44 billion through Bounce Back Loans and with the government giving these businesses a range of options regarding repayments, we wanted to ensure that banks have a solution to enable them to effectively manage this process seamlessly for their own customers.
“We selected Flexys to develop this specific solution as it puts the end customer at the heart of the solution. The technology is an effective solution that helps both banks and their customers, and I’m confident that it can be applied to a breadth of other scenarios in the future.”
Jon Hickman, chief executive officer, Flexys, commented:
“Our relationship with PwC combines the very best of both organisations to deliver a convenient and fair solution for BBLS and CBLS lenders and their customers. The combination of PwC’s extensive expertise in the banking sector, and the specialist debt management technology we build at Flexys, will enable PwC’s clients to manage Government-backed loans in a compliant and efficient manner. We look forward to developing this strategic alliance with PwC.”