Consumers applying for regulated financial products will now be required to complete a nine-question Readiness Assessment before their application can enter the standard review queue — including those who have already submitted a full application and, in some cases, a deposit.
The Financially Informed Decision Framework, introduced by a consumer finance oversight body following a review of application completion trends, assigns each applicant to one of three tiers: Financially Ready, Approaching Ready, or Readiness Unconfirmed. The classification has no bearing on whether an application is accepted or declined, and the body has confirmed it will not be used as part of any affordability assessment.
Applicants placed in the Approaching Ready tier are routed to a four-week Consideration Pathway consisting of two automated emails, one optional guidance webinar described in the documentation as “not compulsory but strongly encouraged”, and a follow-up confirmation prompt asking applicants to confirm they have received the follow-up confirmation. Completion of the Pathway does not affect processing time or queue position.
Those in the Readiness Unconfirmed band are required to wait fourteen days before retaking the questionnaire. The reflection window cannot be shortened, though the body notes that applicants are permitted to continue gathering and submitting supporting documents during it, provided they do not construe this activity as a signal that they are ready.
Early data from the pilot phase found that 67 per cent of respondents scored in the Approaching Ready band. The body described this as “an encouraging result”, noting the cohort had been drawn entirely from applicants who had already selected a specific product, read the terms and conditions in full, and in a number of cases provided proof of funds along with a signed letter of intent.
A further classification — Contextually Ready — is in development for applicants who score highly on the questionnaire but are flagged as operating in circumstances the framework describes as “financially complex”. The body said the tier would be introduced following additional consultation on what guidance to provide once someone is in it. No timeline has been set.
The framework applies to new applications from this month. Applications submitted prior to its introduction are not subject to the Readiness Assessment, though the body is reviewing whether a retrospective Awareness Pathway should be offered to recently approved applicants to ensure they feel informed about a decision they have already made and which cannot be changed.
