W2 Identifies Key Statistics from Financial Risk Checks to Support Gambling Operators

By | May 4, 2023
Reading Time: 2 minutes

 

Regtech orchestration platform provider, W2, has identified key statistics within their financial risk check solution to help operators understand the affordability of their customers and support player protection initiatives.

W2, the provider of leading regulatory compliance services to the gambling industry, has identified keys statistics relating to High-Cost Short-Term loans within its financial risk affordability solution. With the release of the gambling industry white paper last week, gambling operators must now prepare to implement financial risk checks when customers hit certain net loss limits.

The solution combines data assets from multiple sources at the individual, demographic, and geographic levels on a ‘where available’ basis and has been built to provide as clear a picture as possible in a way that is not intrusive to the player. Operators can customise data consumption either through API integration at onboarding, or trigger based on various markers of harm (MOH).

One of the 50+ data indicators included in the solution analyses data on High-Cost Short-Term loans. This is key data for operators to have access to as consumers who are considering using loans to pay for critical costs such as bills and debt may not have the means to gamble.

When comparing a batch trial completed in 2023 vs. 2022, the results of High-Cost Short-Term or payday loans were staggering. W2 has identified the following statistics:

  • High Interest Short Term loan enquiries to pay for bills increased by 1700%.
  • High Interest Short Term loan enquiries to pay for debt increased by 1000%.
  • High Interest Short Term loan enquiries for short term cash increased by 1050%

Warren Russell, CEO & Founder at W2 commented “The results of this batch trial when compared to data from 2022 is clear evidence that the cost-of-living crisis is hurting. The sheer number of consumers needing loans to pay for day-to-day costs is certainly the type of data which can be helpful to operators when implementing their player protection initiatives.

We are pleased that the long-awaited gambling white paper has now been released to give operators guidance on how best to comply with updated regulation. It is also promising that financial risk checks are going to play a key part in a safer gambling industry. W2’s financial risk solution has been specifically developed with the needs of gambling operators in mind, and we are looking forward to being able to provide this to the industry.”

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