Insights

FriendlyScore’s Insights is a library of metrics which are calculated from the underlying transaction data and give additional value over and above the basic metrics which are supplied by banks.

The Insights library contains hundreds of financial metrics that are all available via FriendlyScore’s API. A selection of the most commonly-used in customer risk assessment are given in the FriendlyScore dashboard. We will focus on the latter in this section.

The Insights product comprises several dimensions, each of which we will describe in more detail below.

FriendlyScore InsightHigh-Level Description
Financial MarkersMetrics which are indicative of some measure of financial risk.
Financial PatternsHistorical trends of key metrics at transaction level
Income & Expenditure AnalysisBreakdown of monthly cash flow patterns at varying levels of granularity
Balance history & forecastHistorical and predictive analysis of balance
Employment DataCalculated and inferred metrics related to a user's salary

Accessing Insights

Insights are located in customers’ individual reports. To access these reports, perform the following:

  • Navigate to the Reports panel in the Dashboard
  • Click on the appropriate Ready button next to the customer report you wish to view (the green Ready button indicates a customer has shared data)
  • The customer’s report will be displayed.

Now we will look at each component of the Insights product as it appears in the customer report.

Users who have connected both types of accounts, insights for personal and business are located on separate tabs which can be toggled via the report tabs (see below).

Financial Markers

FriendlyScore’s Financial Markers are a library of engineered feature variables which have been designed to give insight into financial risk. The set of Financial Markers displayed in customer reports for personal and business isn’t identical (for example, there are risk markers which only apply to business or personal accounts), but there is some overlap. We will explore this further below.

Personal Accounts

The Financial Markers section of the customer report for personal accounts is divided into three distinct panels as follows:

Each panel comprises a group of associated metrics which have been selected due to their indicativeness of risk.

PanelDescription
1. Proportion of IncomeFour risk markers which denote amount spent as a percentage of that customer’s total income
2. IndicatorsSix risk indicators denoting the presence or absence of the associated activity on that account, with the exception of Negative Balance Ratio that is given as a percentage.
3. Bank Charges / Returned Direct DebitsCount of the number of times a user has been penalised by their bank for some adverse financial activity, or had direct debits returned during the last three months and last twelve months

Descriptions of individual markers and the underlying logic used to calculate them can be found in the data dictionary described below.

Business Accounts

The Financial Markers panel for business accounts is divided into four distinct subsections:

Each panel comprises a group of associated metrics which have been selected due to their indicativeness of risk.

PanelDescription
1. Total IncomeShows the total income of the business split by Sales and Services, and income from all Other sources.
2. Proportion of incomeSpending in two categories associated with risk (Credit Repayments and Debit Bank Transfers), quantified as a proportion of that business’s total income.Spending in two categories associated with risk (Credit Repayments and Debit Bank Transfers), quantified as a proportion of that business’s total income.
3. IndicatorsFive specific indicators of risk denoting the presence or absence of the associated activity on that account, with the exception of Negative Balance Ratio that is given as a percentage.
4. Bank Charges /Returned Direct DebitsCount of the number of times a business has been penalised by their bank for some adverse financial activity, or had direct debits returned during the last three months and last twelve months

Descriptions of individual markers and the underlying logic used to calculate them can be found in the data dictionary described below.

Income and Expenditure Analysis

The customer reports page provides a representation income and expenditure analysis in the form of a daily cashflows graph:

The graph represents the total income (green) and total expenditure (red) amounts (y-axis) on any give day (x-axis). The net daily cash flow (daily income - daily expenditure) is shown in yellow.

Balance History and Forecast

The customer report provides a graphical representation of balance for both business and personal users. This comprises a historical lookback, along with a 30 day forecast based on the historical balance trends.

The default display represents the total balance calculated across all accounts a user has connected. Balance histories and forecasts for individual accounts can be viewed by selecting from a dropdown bar. Users may also filter the time period of data displayed in the graph, as shown below.

Employment Data

The Employment panel in the customer report for personal accounts highlights key data associated with a user’s salary.

The three metrics displayed have been calculated as follows:

MetricDescription
Average Expected SalaryAverage contribution expected from salary in the following month, based on a historical analysis of the most recent three months of salary data
Number of SalariesNumber distinct sources of salary payments within the last three months
Next Expected SalaryThe expected date of the next salary transaction based on a historical analysis of the most recent three months of salary data

Data Dictionary

Given below are detailed descriptions of each of the Financial Markers features given in the customer report. Also displayed is which customer report (personal or business) that feature appears in.

Total income:

FeatureDescriptionPersonalBusiness
Sales & ServicesIncome from transactions identified as Sales and Services as a percentage of total income. Absolute amount also displayed.noyes
OtherIncome from all other sources as a percentage of total income. Absolute amount also displayed.noyes

Spending as a proportion of income:

FeatureDescriptionPersonalBusiness
Credit RepaymentsSum of transaction amounts identified as credit repayments displayed as a percentage of income. Absolute amount also displayed.yesyes
GamblingSum of transaction amounts identified as payments to gambling providers (such as bookmakers, online casinos, bingo, lottery, etc.) displayed as a percentage of income. Absolute amount also displayed.yesno
Cash WithdrawalsSum of transaction amounts identified as withdrawals from ATMs or received as cashback displayed as a percentage of income. Absolute amount also displayed.yesno
Debit Bank TransfersSum of transaction amounts identified as transfers out of an account (this does not include direct debits or standing orders) displayed as a percentage of income. Absolute amount also displayed.yesyes

Risk indicators

FeatureDescriptionPersonalBusiness
New DebtPresence of a new debt product on the user’s account.yesyes
Debt ManagementPresence of any payments to a debt collection, recoveries or management company on the user’s account.yesyes
Possible Loss of IncomeDetection of a significant drop in month-to-month income.yesno
Out of Work BenefitsPresence of any out-of-work related benefits on the account, such as Jobseekers Allowance.yesno
High Cost Short Term CreditPresence of high cost short term credit repayments on the user’s account, such as payday loans.noyes
Recent AccountIndicator denoting whether the account is new.noyes
New EmployerDetection of a new employer, inferred through transaction data.yesno
Negative Balance RatioThe percentage of time the user spends with a negative total balance.yesyes

Bank Charges / Returned Payments

FeatureDescriptionPersonalBusiness
Bank ChargesCount of the number of times a user has been penalised by their bank for some adverse activity (such as unarranged overdraft usage, unpaid standing orders and interest charged) over the last three and twelve months.yesyes
Returned Direct DebitsCount of the number of returned direct debits over both the last three and twelve months.yesyes

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