Blog – The commercial case for robust income & expenditure assessments

For years, affordability checks were seen primarily as a regulatory obligation. But the evidence now shows something more powerful: robust income and expenditure (I&E) assessments don’t just protect customers — they also deliver measurable commercial benefits.

Firms in lending, debt purchase, consolidation and collections are facing multiple pressures: rising debt levels, workforce shortages, and increasing regulatory expectations. The FCA’s Borrowers in Financial Difficulty Review and Policy Statement 24/2 both highlight the need for full affordability checks and sustainable repayment plans. That’s a compliance imperative — but it’s also a commercial opportunity.

Workforce efficiency – Completing I&Es is demanding, time-consuming work. In many firms it falls to entry-level agents, creating recruitment and retention challenges. But by using guided digital tools:

• Agent time on I&Es can be reduced by up to 90%.
• Training time can fall by 80%, with technology prompting agents through complex cases.
• Customers are increasingly willing to self-serve, with around 30% switching from agent-led to digital assessments.

Improved repayment values – Strong affordability checks lead to stronger outcomes:

• Repayment values improved by 60% on average.
• Sustainable repayment plans are up by around 5%, reducing rework and default.
• Identifying unclaimed benefits can boost customer resilience, with some firms finding an extra £350 or more per month for customers.

Regulatory alignment and trust – The FCA expects I&Es to be reliable, auditable and shareable. With the right systems in place:

• Every interaction can be quality checked with a full audit trail.
• Assessments can be passported, helping customers share data with other creditors.
• Messaging and journeys can be A/B tested to evidence which approach delivers the best customer outcomes.

Robust affordability assessments are no longer just about compliance. They unlock efficiency for agents, improve repayment performance, and build customer trust. Firms that invest in the right solutions will not only meet the regulator’s expectations — they will also strengthen their commercial position.

At Inicio we help firms realise these benefits every day. Our affordability solution is consistent, configurable and fully auditable. It reduces agent workload, increases digital uptake, and provides MI that proves effectiveness. In short: a regulatory must-have that delivers clear commercial returns. Could your firm benefit?

Why not speak to us today.