Treating Customers Fairly
How can lenders manage risk, make the best decisions to maximise commercial opportunities all whilst honouring regulations to ensure customers are treated fairly? What does ‘treating customers fairly’ look like in online lending methods and tools?
This month’s feature article
Vulnerability – How Effective Are Digital Customer Journeys?
What we learned from the FCA Sandbox. Read our latest article today…
Our Articles on Lending Risk
Horror Stories and Bad Debt: How can we tackle financial vulnerability?
The UK is a nation in debt Horror stories about payday lenders and tv programmes about high court enforcement litter the national media. Indeed, financial vulnerability is prevalent throughout British society, and it is easy to stumble across examples of ‘bad debt’...
Regulating for better outcomes – next steps in consumer credit
The FCA has published a speech on consumer credit focusing on consumer outcomes and needs, particularly for those in a vulnerable position.
Is KYC enough? Why lenders and service providers are failing to fully manage compliance risk.
Is KYC enough to assure regulatory compliance? Here is why most lenders and service providers are failing to fully manage compliance risk.
How well are digital journeys protecting the financially vulnerable?
For financial services vulnerable customers are a key concern. PrinSIX software can improve onboarding to support the financially vulnerable
Adapting marginal gains principles to loan onboarding process
Learn how focusing on achieving marginal gains in the customer onboarding process has the potential to transform the lending industry.
Checklist: Embracing FCA’s Principle 6 by Design
The FCA’s Principle 6 - 'A firm must pay due regard to the interests of its customers and treat them fairly.' Compliance or culture?The lenders’ balancing actConsumer lending today is hard. In addition to the competition that exists in any financial services segment,...
Announcing The Arrival of Breathing Space
Today’s arrival of the Breathing space should be celebrated.
Vulnerability – How Effective Are Digital Customer Journeys?
When potential vulnerability is identified, what are effective mitigation strategies? How do we give lenders more tools than decline?
Managing And Monitoring Credit Risk After The COVID-19 Pandemic
The pandemic-triggered recession has led banks to move more quickly to build real-time data and analytics into their credit-decision engines.
The Latest Roundup of News Stories
Regulating for better outcomes – next steps in consumer credit
The FCA has published a speech on consumer credit focusing on consumer outcomes and needs, particularly for those in a vulnerable position.
Announcing The Arrival of Breathing Space
Today’s arrival of the Breathing space should be celebrated.
Managing And Monitoring Credit Risk After The COVID-19 Pandemic
The pandemic-triggered recession has led banks to move more quickly to build real-time data and analytics into their credit-decision engines.
Stronger Imperatives for Action for Vulnerable Customers
The pandemic’s impact has led to an increase in the incidence & complexity of consumer vulnerabilities. Discover the areas where firms need to take action.
Please note: The insights provided in this section are commonly republished from third-party sources. Articles are the exclusive opinions of the authors. PrinSIX Technologies Ltd accepts no liability for their accuracy or for any consequential impacts of any actions resulting from the use of this information.
Our Analysis
Optimising both regulatory and commercial objectives is hard
Lenders’ main objectives are – to lend responsibly and lend profitably.
Delivering both can be done, but is challenging. Success is determined by the customer onboarding journey.
Journeys must balance the need for speed with the need for insight. Journeys that understand a customers’ total commercial value as well as potential vulnerability and regulatory risk.
The primary tension between commercial and regulatory objectives is conversion. Long journeys don’t convert as well as short ones, but short journeys reduce understanding, elevating regulatory risk. Journeys must be only as long as necessary. That’s why ‘one size fits all isn’t good enough any more.
How PrinSIX can help
Onboarding today is inadequate to manage these challenges.
Our SaaS platform equips organisations to create dynamic, personalised, agile onboarding journeys – one applicant at a time.
Facts about Lending Risk
1. The average amount of unsecured debt for the average person in the UK in 2019 was £9,034 for a personal loan. (Statista)
2. The average amount of unsecured debt for the average person in the UK in 2019 was £7,635 for a credit card. (Statista)
3. Mortgage borrowing rose by a net 11.8 billion pounds ($16.4 billion) in March 2021. (Reuters)
4. Credit risk has increased. For example, loss reserves as a percentage of total loans were at 2.19 at the end of Q2 2020; compared to 1.15 at the end of Q4 2019. (Forbes)
5. Nearly three-quarters of people who borrow money from friends or family never pay the loan back in full. (Forbes)
