Additional rules for the Decision Engine to increase automation and better match your lending risk appetite are now available. New rules detect early signs of financial stress, especially credit utilisation, as well as problematic transaction behaviour.

Importantly new credit card rules focus on the main drivers of bad debt; long-term high utilisation and moving quickly to the limit (velocity).
​
Some rules complement existing rules by providing either a decline or refer variant. For example there is now the ability to decline an application based on the number of accounts at status 2 or higher. Additional rules based on the transaction data from Open Banking enable applications to be referred as well as declined.
​

This article outlines each of the new rules, how they work and can be configured.

Use the list below to jump to a specific rule, or continue past the bullet points to read the article in order in full.

The following four rules assess credit card balance and utilisation data obtained from the applicant's credit file. They do not use Open Banking or credit card transaction data.

This rule issues a Refer decision if the applicant’s balance on a specified number of credit cards has reached a defined utilisation percentage over a set period of time.

Customisable parameters:

Benefit:
This rule helps flag applicants who are utilising a high percentage of their revolving credit limit. Being at or close to a limit over a long period of time can be an indicator of financial stress. Long-term, high utilisation, is the main driver of bad debt.

Example use:
Refer if balances on 2+ credit cards were at 75% utilisation over the past 2 months.

Note: the utilisation ratio must be at 75% or higher in both those previous 2 months. If the rule was set to 6 months, the ratio must be 75% or higher in each and all of those previous 6 months.

This is the decline variant of REF30. The rule declines an application when credit card utilisation reaches a threshold that indicates excessive or unsustainable use of credit.

Customisable parameters:

Benefit:
Allows lenders to automatically decline applicants whose credit card usage suggests a high risk of over-indebtedness, ensuring consistency and speed in lending decisions. Long-term, high utilisation, is the main driver of bad debt.

Example use:
Decline if balances on 2+ credit cards were at 90% utilisation over the past 3 months.

Note: the utilisation ratio must be at 90% or higher in both those previous 3 months. If the rule was set to 6 months, the ratio must be 75% or higher in each and all of those previous 6 months.

This rule Refers applications where the borrower's balance on a set number of credit card accounts has increased by at least a specified percentage within a defined period. For example, if the balance today is more than 20% higher than it was six months ago on two accounts.

Customisable parameters:

Benefit:
This rule helps identify applicants whose credit card balances are increasing both rapidly or steadily over time. Fast velocity is a key driver of bad debt. Lenders can review cases manually before risk escalates to the level requiring a decline.

Example use:
Refer if balances have grown by 20% or more within the past 6 months on 2 or more credit card accounts.

​

This rule declines an application if the applicant’s balance on a set number of credit card accounts has increased by a specified percentage or more within a defined period. For example, if the balance today is more than 75% higher than it was two months ago on two accounts.

Customisable parameters:

Benefit:
This rule identifies applicants who have shown a recent and significant increase in credit card borrowing, which may indicate escalating financial pressure or deteriorating affordability. It provides an automated way to detect potential overextension before other indicators (such as arrears or defaults) appear.

Example use:
Decline if balances have grown by 75% or more within the past 2 months on 2 or more credit card accounts.

This rule complements REF08 for missed payments. The rule declines an application if the applicant has reached status 2 or higher (that is, missed two or more full months of payments) on one or more accounts within the last 12 months.

This rule is the main indicator of a worsening risk. Account are about to move from early (status 1 or 2) to sustained delinquency (status 3 -6).

Customisable parameters:

Fixed parameters:

Benefit:
This rule enables credit unions to set clear thresholds around acceptable recent arrears history. It complements existing arrears-based rules such as REF09, providing faster and more consistent decline outcomes for applicants with multiple or recent payment issues.
​

Example use:
Decline if 2 or more accounts have reached status 2+ within the past 12 months.

The following 4 rules have been added to the affordability rules section and utilise Opening Banking data.

Issues a Refer decision if the applicant’s Open Banking data shows a specified number of bounced payments within a given timeframe.

Customisable parameters:

Benefit:
Helps identify applicants experiencing short-term cash flow difficulties, while allowing manual review to assess context and severity. The rule complements the decline, where the threshold could be set higher.

Example use:
Refer if there are 2+ bounced payments within the past 2 months.

Provides a Refer decision if the applicant’s Open Banking data shows a high frequency of gambling transactions within a defined period.

Customisable parameters:

Benefit:
Supports responsible lending by flagging frequent gambling activity for manual review, ensuring fair consideration without automatic rejection.

Example use:
Refer if there are 10+ gambling transactions within the past 1 month.

Issues a Refer decision if gambling spending totals a certain percentage of the applicant’s income within a set period.

Customisable parameters:

Benefit:
Adds an additional layer of insight into gambling-related risk, based on value rather than frequency, ensuring a balanced assessment.

Example use:
Refer if gambling spending is 10% or more of income within the past 1 month.

Issues a Refer decision if the applicant’s Open Banking data shows a high volume of BNPL transactions within a defined period.

Customisable parameters:

Benefit:
Helps identify applicants who may be over-reliant on short-term borrowing through BNPL services, a growing indicator of financial strain, especially when the facility is being used for day to day living expenses.

Example use:
Refer if there are 5+ BNPL transactions within the past 2 months.

All new rules can be configured through the Decision Engine Settings in your organisation’s account. Each rule’s parameters (e.g. number of accounts, months, utilisation percentage) can be tailored to your risk appetite.
​

If you would like to add, adjust, test or discuss these new rules you can book a meeting with your Success Manager here or email [email protected]