When the Financial Ombudsman released its annual complaints report earlier this month, the news that payday loan complaints had risen was pounced upon. This was an increase – and a significant one at that – despite tighter measures having been introduced to regulate short term loans. However, the ombudsman itself said the increase, “reflected people’s growing awareness of their rights when things go wrong”. This whole subject of consumer awareness is an interesting one. With ‘how-to’ sites providing complaint letter templates online, and a fee charged to the loan company each time the ombudsman takes on a case whether it’s upheld or not, could this be the breaking of the payday lending industry?
Google is the company that famously included ‘do no evil’ in its original mission statement. This was always a bold claim, and the debate rumbles on about whether it has always lived up to these very exacting standards.
Topics: Consumer Lending
The amount and type of data we generate in our everyday lives has changed beyond measure with the technology revolution. Yet, data used by financial institutions has remained largely unchanged and hinges upon traditional, largely historical financial sources such as credit history. To meet today’s customer need for speed, companies want to make risk decisions quickly and reliably. For this, they rely on data and sophisticated integration tools to access it.
This year’s LendIt once again brought together online lending industry leaders, experts in lending platforms, investing and service provision to discuss, debate and collaborate on industry issues. Consumer lending was the subject of a deep dive; it is a sector that has seen new players enter the market to compete with traditional providers for the consumer dollar. Growth in the sector has been seen in particular in P2P lending.
We think of cloud computing as a very modern-day technological advance, and it’s true that pioneering developments have moved the technology on this century. However, cloud has its origins many decades ago, in the humble beginnings of mainframe computing and its ethos can be seen in virtualised systems of the 70s.
The arrival of Money20/20 in Copenhagen brought a breath of fresh air to the European conference circuit. The high-energy, well-structured event generated a bright atmosphere for conversation and collaboration - and not just because business in the networking area was conducted in colourful sheds. Notable by their absence were customers, but industry players were out in force and a recurring topic of conversation was how today’s banks and financial institutions can add immediacy to their processes.
Today's consumers have more options available to secure credit or a loan. Short term lenders provide a ready source of convenient funds that are generally quicker to secure. The industry has its critics but, working within a framework of responsible lending, has grown rapidly. Not only do the products of short term lenders meet a market need, but through the use of technology and advanced risk analytics their means of delivery meets today’s customers’ demand for speed.
Money20/20 Europe next month promises to be an inspiring few days of discussion, debate, information sharing and collaboration. With evolving regulation, rising customer expectations and increasing levels of competition, the financial services and payments industry is a challenging one to be in; but innovators are meeting these challenges through some exciting trends. I’m expecting to hear about:
Many people are familiar with the classic Magic 8 Ball toy that told your fortune or could provide positive, neutral or negative advice on a particular topic. Having your future predicted was as simple as asking a question and then turning the ball over to read the answer. If you didn’t like the answer provided (there were only 20 possible answers after all), you could shake or shock the Magic 8 Ball into hopefully providing a more positive outlook. If only we could use the Magic 8 Ball to predict how the Commercial Real Estate Finance (CREF) market will respond if the Federal Reserve continues to raise interest rates.