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Regtech Orchestration Platform Provider, W2, has identified important statistics within its financial risk check solution in order to help operators understand their customers’ affordability and support player protection measures.
W2, a leading provider of regulatory compliance services for the gambling industry has identified key statistics in relation to High-Cost, Short-Term Loans within its Financial Risk Affordability Solution. The gambling industry’s white paper was released last week. Now, operators need to prepare for financial risk checks once customers reach certain net loss thresholds.
The solution is designed to give the player a clear picture by combining data assets at multiple levels, including demographics, geographic location, and individual. Operators can customize data consumption through API integration during onboarding or trigger based upon various markers of harm.
One of the 50+ indicators in the solution analyzes data on High-Cost short-term loans. Operators need to know this data because consumers may be considering borrowing money to pay bills or debts.
The results of a batch test completed in 2023 and 2022 were shocking. The following statistics have been identified by W2.
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The number of requests for high interest short term loans to pay bills has increased by 1700%.
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The number of requests for high interest short term loans to pay off debt has increased by 1,000%.
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Short-term cash loan inquiries for high interest loans have increased by 1050%
Warren Russell, CEO and Founder of W2, commented: “The results from this batch trial compared with data for 2022 are clear evidence that cost-of living crisis is hurting. Operators can use the sheer number of consumers who need loans to cover their daily costs to implement player protection measures.
The long-awaited white paper on gambling has been released. It provides operators with guidance as to how to best comply with the updated regulations. Financial risk checks will also play a major role in creating a safer industry. The financial risk solution developed by W2 was specifically designed with gambling operators’ needs in mind. We are excited to be able to offer this to the industry.”
