Virgin Money Case Study

The Challenge

Virgin Money are a long-standing client of Lenvi and our Riskfactor software. They originally came to us after detecting a need for a comprehensive solution to enhance and streamline their receivables and invoice finance portfolio management processes. Previously, the receivables finance industry’s options for portfolio management relied on end-of-month data and manual processes, hindering proactive risk management, and requiring more staff to maintain oversight. At times when client portfolios were smaller, this approach sufficed but as portfolios have grown and risk requirements increased in complexity, the need for a modern, real-time system to centralise data, improve efficiency, and automate processes was needed.

The Needs

Over the course of our relationship with Virgin Money their needs and their use of our platform have evolved in line with advances in reporting requirements, portfolio size and modernisation of their customers’ internal processes.

Today, Virgin Money engage with our Riskfactor platform for three core purposes central to their portfolio management:

• Proactive risk management – Virgin Money need continuous monitoring of ledger trends to be able to proactively identify risk and fraud events.
• Smarter audit planning – Virgin Money wanted to make smarter use of audit resource allocation determined by level of risk within their Invoice Finance portfolio. 
• Invoice Discounting analysis – Virgin Money were investing considerable time in manual month end reconciliations for all customers and were looking for a system to automate some of those processes.

The Solution

Three core solutions that Riskfactor has been able to deliver for Virgin Money are:

Proactive risk management

• Riskfactor’s centralised data and continuous monitoring allows their Invoice Finance relationship managers to receive Daily Focus lists that provides customer ledger data in one place and highlights anomalies in portfolios.
• This enables early detection of potential issues, whether deviations from a customer's normal trends or emerging risks that require investigation.
• Additionally, the tools within Riskfactor enable them to quickly identify customers where lending limits could be responsibly increased and enhance the customer experience as a result.
• The system's alerts on facility and customer activities, such as sales fluctuations or credit note dilutions, provide deeper insights and helps Virgin Money’s Invoice Finance team to understand the underlying causes. 

Riskfactor’s continuous monitoring functionality has significantly improved Virgin Money’s ability to manage Invoice Finance risk proactively and enhance operational efficiency. Virgin’s Money Invoice Finance risk management and relationship management teams can now respond swiftly to emerging risks while maintaining oversight and control over their portfolios.

Smarter audit planning

• Riskfactor enables risk-based audit planning, allowing Virgin Money to schedule audits based on areas of greatest risk.
• The system tracks all parts of the audit process, ensuring thorough documentation and providing a clear audit trail. 

Riskfactor transformed Virgin Money's Invoice Finance audit practices, making them more effective by prioritising high-risk areas. This improved the use of audit resources and has ensured thorough and well-documented audit processes. The system’s tracking capabilities also further enhance accountability and transparency, supporting robust governance and controls.

Invoice Discounting analysis

• Riskfactor’s Invoice Discounting Analysis (IDA) module automates reserve calculations for customers using compatible accounting software, integrating high-risk assessments and reducing human error.
• Riskfactor’s centralised communication and task management capabilities streamlined workflows and enhanced collaboration across teams.

The automated IDA module streamlined invoice discounting, integrating high-risk assessments and increasing operational efficiency for 50% of Virgin Money’s Invoice Finance facilities.

The Results

Virgin Money is one of many Lenvi clients that has fully embraced Riskfactor. Upon implementing the Riskfactor software, Virgin Money executed detailed training programs, including classroom sessions and follow-up ‘super user’ training, ensuring their team fully embraced and utilised Riskfactor’s out-of-the-box capabilities.

Riskfactor’s implementation resulted in enhanced operational capacity, improved risk management, and better decision-making.

With a high-value customer base, Riskfactor remains central to Virgin’s strategy, supporting daily operations, audit planning, and risk management, ensuring sustained success and robust internal controls.

From our  experiences to date, Riskfactor can reduce lender provisions by 10-25% annually and creates time savings of 55% across the monthly risk review processes.