Broadstone Launches Affordability Health Check to Enhance Lender Compliance

Broadstone’s launch of the Affordability Health Check provides lenders with a structured path to meeting heightening regulatory standards under the Consumer Duty. By auditing frameworks across motor finance and BNPL sectors, the tool addresses the critical need for operational efficiency and accurate risk assessment in an increasingly scrutinized and data-rich credit market.

What was announced

Broadstone has introduced the Affordability Health Check specifically for lenders operating in the motor finance, consumer lending, credit union, specialist finance, and Buy Now Pay Later (BNPL) sectors. The service is designed to evaluate and enhance how these firms determine a borrower's ability to repay, moving beyond legacy systems that may no longer be fit for purpose in the current regulatory climate.

The process involves a comprehensive review of a firm’s existing affordability framework and governance structures. Broadstone assesses the methodologies used to calculate disposable income, the data sources integrated into the decisioning engine, and the internal controls that prevent over-lending. A key component of the offering is benchmarking, where a lender’s approach is measured against both its industry peers and the current expectations of UK regulators.

Upon completion of the assessment, lenders are provided with an Affordability Health Check Report. This document includes a prioritized list of recommendations and a practical roadmap for improvement. It also outlines indicative implementation costs and identifies support options for firms needing to overhaul their processes. The launch comes at a time when evolving verification techniques, such as Open Banking and more granular data sets, allow for more bespoke assessments than traditional credit scoring alone. This enables lenders to take a more tailored approach to individual customer circumstances while maintaining compliance.

"Affordability assessments are a critical part of responsible lending, but many firms are working with frameworks that have evolved incrementally and may no longer reflect current regulatory expectations, or take advantage of the latest tools, techniques and analytical approaches,"

Harry Charalambous, Principal in the banking and credit advisory division at Broadstone.

The companies involved

Broadstone is a leading independent UK consultancy that provides expert advice to lenders and financial institutions. The firm operates across several specialized divisions, including banking and credit advisory, insurance, and health and risk. Broadstone has positioned itself as a key partner for firms navigating the complex UK regulatory landscape, particularly regarding consumer protection and financial stability.

The company’s banking and credit advisory division focuses on helping lenders manage risk and maintain compliance in a shifting economic environment. By remaining independent, Broadstone provides objective benchmarking that is not tied to specific software providers or credit bureaus. This independence is a significant factor for firms in the specialist finance and credit union sectors, which often require more tailored advisory services than large-scale retail banks. The firm’s recent growth has been marked by a series of senior appointments across its regulatory and insurance practices, reflecting a broader strategy to scale its consultancy capabilities in response to increased demand for remediation and governance expertise across the financial services sector.

What FF News has reported before

FF News has tracked Broadstone’s significant expansion over the past year, particularly its efforts to bolster its leadership team with regulatory and sectoral experts. In late 2025, the firm signaled its focus on compliance by appointing Damien Burke as Head of Regulatory Practice. This was followed by the strategic appointment of Daniel Murdoch as Director to strengthen the banking and credit advisory division.

Broadstone has also been active in scaling its other core areas. The firm recently appointed Bethany Devin as Principal Consultant to grow its health and risk division. Additionally, the company expanded its reach into insurance markets, as seen when Broadstone appointed Matthew Ford to lead growth in insurance advisory and remediation. These moves collectively demonstrate a firm-wide push to provide deeper technical expertise across the UK’s financial services infrastructure.

What this means

The introduction of this health check highlights a broader industry shift: the era of "tick-box" affordability is over. With the FCA’s Consumer Duty now in full force, the burden of proof has shifted to the lender to demonstrate that products are truly affordable throughout the customer lifecycle. This puts significant pressure on BNPL and motor finance providers, who have historically relied on faster, less intrusive checks. The move toward bespoke, data-driven assessments is no longer a competitive advantage but a regulatory necessity. Lenders who fail to modernize their frameworks risk not only regulatory intervention but also increased default rates as economic conditions fluctuate and consumer spending habits evolve.