The world of consumer credit is changing incredibly fast, and for the better, as big data analytics allows lenders to make faster, better and more confident decisions. Let’s look at what the future is likely to hold for lenders, customers and FCA compliance consultants.
Innovation that adds value
Fintech developments will allow new and agile providers to offer financial products that are transparent, intuitive, and genuinely valuable. These AI-driven systems will help to build confidence and economic activity, improve access to finance, and also help support compliance, making work easier for FCA compliance consultants. Finance Compliance Consultants will be able to instantly access regulatory data that proves compliance and helps the banking industry work fairly and efficiently.
Vulnerable customers will get support
Vulnerable customers have often struggled to access affordable and ready credit. In many cases, this has led to the growth of undesirable, expensive credit in unregulated industries such as payday loans. AI systems and fintech will allow financial providers to offer better solutions to customers tailored to their exact circumstances and needs. Fintech systems will allow lenders to look at how individuals handle payments such as rent, subscriptions and utility bills to assess their ability to handle repayments, even if their credit records are thin, or they have non-traditional patterns of income.
The development of the consumer industry will be good news for people, lenders and the economy as a whole. Credit underpins the modern economy, so fair, transparent and affordable lending can benefit everyone, especially when it is managed responsibly and with the welfare of customers in mind.
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