CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow What will the loan industry look like in 2017?
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

  • Asset finance up 16% in June
    New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase)… More

Headlines

 
What will the loan industry look like in 2017? PDF Print E-mail
Thursday, 05 January 2017
2016 was a busy year for the UK lending industry. The Financial Conduct Authority (FCA) continued to tighten regulation, while consumer credit grew at its fastest rate since before the financial crash. As we approach the end of the year, Sarah Jackson, Director, Equiniti Pancredit, looks ahead at the trends and technologies that will shape the lending industry in 2017.

Outsourcing will get smarter
Deloitte’s Global Outsourcing Survey2 revealed that not only is the use of outsourcing increasing, but attitudes among banks about how they engage with outsourcers is also on the move. Once seen as merely a cost-cutting approach – and make no mistake, this remains a significant motivator – service providers have widened their offerings to provide end-to-end solutions that offer a far greater depth of service support than before. More than ever before, outsourcers are becoming key business enablers that actively promote innovation. This is a key trend that will continue to shape the industry in 2017.

Biometrics in 2017: Not ‘if’ but ‘which?’
Biometrics as a form of authentication has been gathering steam for several years - the more accurate authentication processes are, the less vulnerable the lender is to fraud. Given the speed and convenience of these solutions, biometrics hold a special place in the authentication debate; banks in particular are perpetually seeking ways to enhance their mobile user experience. As these technologies become more practical and cost effective to implement, which biometric modality to implement will become an important decision in 2017.

While fingerprint sensors are the most prevalent in consumer devices, many fintechs are leaning towards voice and face recognition as potentially more accurate alternatives. Behavioural and document recognition would have immense value for lending providers too. These technologies will be an area of major focus in the year ahead.

The move to mobile
The migration of financial services from branch to desktop to mobile device has transformed the landscape almost beyond recognition. Recent research3 by Equiniti, conducted with a nationally representative sample, revealed banking on a smartphone or tablet to be the most popular method, with 48% of respondents using a mobile banking application, and more than a third using that app at least once a week. In 2017 the lending industry will need to make sure that its mobile offering matches that of its telephone, branch or online services.

Additionally, while the survey found a significant appetite among consumers for financial services, there remains widespread concern about security. The lending industry, and financial service providers in general, will need to invest in effective security for their apps and mobile-optimised websites and communicate this to the public.

Uncertainty
The economic atmosphere of uncertainty, thrown into the spotlight by Brexit and the American presidential election, to name just two recent surprises, presents a challenge to lenders. This climate affects key factors impacting lenders’ forecasting, such as interest rates and consumer borrowing behaviour. In order to mitigate the risks associated with unpredictable economic behaviour, lenders will need to maximise their capabilities and improve the accuracy of their forecasting. The best way to do this will be to employ intelligent software with smart - and often predictive - analytics, thereby eliminating human bias and error.

Heightened regulatory environment
It’s news to no-one that the FCA has focused attention on ethical behaviour among lenders in 2016. Next year, this ever increasing scrutiny, and consequential emphasis on compliance, will push lenders to look for innovative, end-to-end, technological solutions. In a nutshell, solutions that effectively hardwire compliance and responsible lending policies into their systems.

‘Regtech’, the new and much vaunted term to describe technologies designed to simplify compliance with regulation, will continue to grow swiftly, as more lenders zero-in on their primary offering and seek to contract out their compliance, together with other business functions, to specialist financial managed service providers.

With such change afoot, the next 12 months present challenges and opportunities for us all.
 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197