Credit-fuelled harmful gambling 07082024 - Flipbook - Page 5
LOANS TO GAMBLERS
Credit bureau data is completely inefective
at identifying gambling propensity.
Looking at the 10% of Salad applicants with
heavy gambling of over £1,000 per month:
Salad cross-referenced applicants (for whom
it had made an Open Banking-powered lending
decision) with the credit score provided by a
credit reference agency.
76%
(of the heavy gamblers)
have been making
repayments to other
loan companies
Salad declines the same proportion of
applicants for gambling with sub-prime
(high risk) credit ratings as super-prime
(very low risk).
Propensity to gamble is not correlated
with consumers9 credit rating. Many lenders
do not identify harmful gambling; historically,
gambling transactions have not been visible to
credit reference agencies so their data remains
a weak predictor of excessive gambling.
10% have been
repaying at least
£1,000 per month
Applicant A:
Applicant B:
Male, 30s, Wales. Works in onancial
services. Approximate annual
salary: £49,000.
Male, 30s, Midlands. Works in
healthcare. Approximate annual
salary: £23,000.
During the 12 months preceding the
application to Salad Money this person
gambled a total of £347,427 in 1,136
separate transactions, spending
£951 on average every day.
During the 12 months preceding
the application to Salad Money this
individual gambled a total of £99,545,
and
