Personal Adffordability

The current economic situation in Vietnam is characterized by significant fluctuations, inflation, and rising commodity prices, exerting considerable financial pressure on both individuals and businesses. In this context, assessing Affordability in loan borrowing becomes crucial to ensuring both the borrower and the lender are protected from risks.

• Affordability is the borrower's ability to meet financial obligations, including timely repayment of both principal and interest, without disrupting personal or business operations. This depends on current income, expenditure, debt, and loan terms. Additionally, the socio-economic environment and state policies significantly impact this capability.
• Assessing Affordability is a mandatory requirement for lenders to minimize the risk of bad debt and maintain sustainable relationships with customers. For borrowers, good Affordability facilitates easier access to loans with more favorable conditions, such as lower interest rates or longer loan terms.
• Moreover, monitoring and adjusting loans based on Affordability helps lenders comply with legal regulations while assisting borrowers in managing their finances effectively, preventing them from falling into excessive debt.
• In summary, Affordability is a core element in ensuring financial safety for both borrowers and lenders, especially in the current challenging economic climate.

Personal Affordability is the capability of an individual or a household to manage loan payments and ensure daily expenditure needs without financial hardship. This depends on several factors, including income, living expenses, current debt, and credit history. Proper management of Personal Affordability helps maintain financial stability and reduces the risk of falling into bad debt.

• Assessing and monitoring Personal Affordability is crucial for both borrowers and lenders. Through monitoring, banks and lenders can determine the level of credit risk and make appropriate lending decisions, thereby minimizing the risk of bad debt.
• Additionally, individuals can effectively control their finances, avoiding borrowing beyond their means and ensuring timely payments.
• In a volatile economy, assessing Personal Affordability not only protects the financial system but also establishes a solid financial foundation for individuals and businesses in the long term.

In the current economic climate with rising inflation, fluctuating interest rates, and global instability, accurately monitoring Personal Affordability is a critical task for lenders. However, this is not straightforward due to several significant challenges.

• One of the first obstacles is the vast amount of data that organizations need to manage. To analyze information from various sources, complex systems and highly specialized teams are necessary, requiring advanced technology. Investment in big data analytics and Artificial Intelligence (AI) is essential but comes with high costs for system deployment and maintenance.
• Additionally, lenders face difficulties in recruiting and training specialized personnel. This team not only needs deep financial knowledge but also technological expertise, a combination that requires continuous training. Changing consumer behaviors also complicates monitoring as organizations need to frequently update data to accurately reflect customers' financial situations.
• Moreover, lenders must ensure compliance with strict legal regulations regarding data security and privacy, requiring additional resources to ensure legality throughout the data management process.
• To overcome these challenges, lenders can leverage the solution from New World CIC, which allows seamless and efficient checking of customers' income and expenditure, optimizing the Personal Affordability assessment process.

New World CIC's PAE solution provides lenders with analyzed and assessed data on individual income, expenditure, and available income. These data are regularly updated to reflect changes in individuals' financial situations, helping lenders determine whether a person has the financial capacity to meet payment obligations such as credit loans or other financial services without causing undue financial burden.
This solution offers lenders a comprehensive view of individual financial health, not just at present but throughout the contractual process.

New World CIC offers an advanced solution for assessing and monitoring Personal Affordability, utilizing modern technology and smart data management strategies.
With large volumes of data from various sources like banks, personal income, and financial factors, New World CIC uses automation technology to continuously update changes in customers' income and expenditure in real-time.
This ensures that the assessment process remains accurate and flexible, especially in a volatile economic context.

• AI and Machine Learning (ML) are key pillars in New World CIC's solution. Thanks to advanced algorithms, the system can predict credit risks based on financial history and current trends. This allows lenders to make decisions based on reliable data.
• Furthermore, NewWorld CIC also monitors consumer spending transactions, analyzing spending trends to predict fluctuations and automatically adjust assessments when there are changes in prices or inflation.
• Additionally, the solution accurately forecasts personal income by analyzing various income sources and employment statuses of customers, enabling lenders to adjust loans appropriately.
• This solution not only supports the assessment of Personal Affordability but also monitors economic and financial factors to detect early signs of bad debt, thereby issuing warnings and helping lenders manage debt more effectively.
• New World CIC's technology provides an optimized process allowing lenders to monitor and assess customer Personal Affordability accurately, continuously, and comprehensively.

New World CIC is committed to helping lenders make accurate, quick, and responsible decisions, ensuring interactions with customers always yield the best and most sustainable results.

• Comprehensive understanding: Continuously updated data helps lenders fully grasp an individual's financial situation, enabling accurate decisions about their Personal Affordability throughout the product lifecycle.
• Personalized products: Accurate financial assessments allow lenders to provide products suited to an individual's current financial situation.
• Individual protection: Personalized products ensure individuals are not offered products beyond their financial means, preventing excessive debt and ensuring satisfaction and loyalty through positive experiences with suitable products.
• Regulatory compliance: Personal financial assessments help lenders meet legal requirements for responsible lending, protecting individuals and ensuring compliance with regulations like GDPR, ensuring data security and privacy.
• Transparency and accountability: Assessments based on accurate financial data enhance transparency in lending and increase lenders' accountability in lending decisions.
• Risk minimization: Continuous monitoring of individual financial situations helps lenders detect risks early, reducing the likelihood of bad debt and defaults to protect the lender from unwanted legal consequences and applying sustainable lending policies to improve financial health for both parties.