Treating Customers Fairly

How can lenders manage risk, make the best decisions to maximise commercial opportunities while honouring commitments to treat customers fairly?   What does ‘treating customers fairly’ look like in online lending methods and tools?   Read the latest on this topic.

 

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This Month’s Articles

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Vulnerability – How Effective Are Digital Customer Journeys?

What we learned from the FCA Sandbox.  Read our latest article today…

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PrinSIX Article on Commercial and Compliance Lending Risk

How well are digital journeys protecting the financially vulnerable?

How well are digital journeys protecting the financially vulnerable?

The relentless drive towards digital engagement is fuelling an active debate within consumer credit about the adequacy of digital only customer journeys.  They meet customers’ demand for convenience and lenders need for efficiency, but real concerns exist within the...

Checklist: Embracing FCA’s Principle 6 by Design

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,...

The Latest Roundup of News Stories

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.

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Our Analysis

Optimising both regulatory and commercial objectives is hard

Lenders have two objectives, to lend responsibly and lend profitably.  Delivering both can be done, but it’s difficult, and success or failure will be determined by lenders onboarding journeys.   

Journeys must balance the need for speed with the need for insight.  Journeys that understand a customers’ total commercial value as well as their 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 long enough, but only as long as they need to be.  That’s why ‘one size fits all isn’t good enough any more. 

How PrinSIX can help

Onboarding today is inadequate to manage these two challenges.  PrinSIX’s platform equips organisations to create dynamic, personalised, agile 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)

About PrinSIX Technologies

PrinSIX add customers

We make innovation work for businesses around the world.

PrinSIX offers a services-led digital platform that uses real-time analytical learning ‘at the speed of digital’ to orchestrate unique customer onboarding journeys, one decision stage at a time.  PrinSIX meets the needs of lenders, regulators and customers fully and simultaneously; equipping lenders to maximize customer experience and lending while minimizing cost and risk; with a major concern being regulatory compliance—an existential threat.  

For more information, click here to get in touch