Lead tranche model — unaffordable lending

Lead purchase

Size and price of the tranche being bought.

Leads purchased

Share arriving with open banking

%

Cost per lead, with open banking

£

Cost per lead, without open banking

£

Lead spend—

Blended price per lead—

Break-even lead price—

Conversion

Leakage between buying a lead and holding a working file. These compound, so small movements matter more than they look.

Non-OB leads later completing open banking

%

Leads converting to a signed client

%

Duplicates and no lender found

%

Cancellations after signing

%

Signed clients—

Survival rate—

Cost per signed client—

Claims and outcomes

Each client can carry several loans. Rejected claims get a second run at the Ombudsman.

Loan claims per client, with open banking

Loan claims per client, without open banking

Lender uphold rate, open banking claims

%

Lender uphold rate, other claims

%

Rejected claims referred to the Ombudsman

%

Ombudsman uphold rate

%

Total claims raised—

Claims per lead bought—

Blended uphold rate—

Cost per claim raised—

Income and cost to serve

Income is per upheld loan, net of VAT and any insurance premium.

Net income per upheld loan

£

Open banking data cost per client

£

File handling cost per client

£

Handling cost per Ombudsman referral

£

Fixed overhead on the tranche

£

Fees written off or uncollected

%

Average months to cash

Cost per upheld loan—

Net fee per upheld loan—

Annualised return—

Lead purchase

Conversion

Claims and outcomes

Income and cost to serve

Sensitivity