Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Dynamics of consumer credit market split by different motivations to borrow and varying attitudes toward use of technology

A new research report from Equiniti Credit Services, the UK’s leading consumer credit technology and outsourced service provider, depicts a rising market for credit in the UK, with consumer motivations for borrowing split between funding aspirational items such as holidays and household goods (47%), and managing or consolidating existing debt (53%).

The report has also identified a stark age group difference in attitudes to technology with 73% of millennials and generation-x happy to research a loan on their smartphone, compared with just 9% of baby boomers.

The report, entitled Great Expectations: The Demanding Market for Credit[1], highlights variations in attitudes between age-groups that are creating new opportunities for established and alternative lenders alike.

One such opportunity relates to how lenders manage customers whose credit applications have been declined.

“Rarely do lenders focus on applicants to whom they have declined credit,” comments Richard Carter, Managing Director of Equiniti Credit Services. “This is a mistake. 68% of those surveyed indicated that they would likely accept an alternative loan offer at a higher interest rate, if it was offered to them immediately.  Agile technologies are the key to unlocking these revenues. We connect lenders to our whole-of-market panel and match declined customers with affordable, alternative products which they are likely to qualify for. ‘White labelling’ products in this way is a real-world example of how Equiniti Credit Services can deliver measurable revenue into any lender, irrespective of scale, almost immediately.”

The report brings into focus the need for lenders to not only digitise their loan services, but to personalise them precisely to the varying characteristics of different customer groups.

“Lenders that have the foresight to invest in moulding their products for different customer segments while using agile technology to enhance their operational efficiency stand to prosper the most,” adds Carter. “The power of this combination will enable much needed competitive differentiation in a rising market. Going digital is one thing. Going digital in a way that chimes with different customer groups is something different entirely.”

In a keynote address at the Future of Lending Conference in London last month, Carter introduced the report to mark the launch of Equiniti Credit Services, a complete outsourced end-to-end credit management solution.

The full report, which also explores consumer attitudes toward the use of biometric and e-signature technologies, social media data in credit decisioning, and loan comparison sites, is available for download without charge here.

[1] Report draws on data collected from a survey of 2000 UK consumers in August 2017

Continue Reading

Recent Posts