Another great annual conference from the Credit Services Association. Lots of interesting insights and great to see folks there. One of the things that is always interesting is the political and economic overview for the UK.
Some notes from this session below.
Key Take Aways
- Regulatory burden remains high post-Consumer Duty; firms face a continuing “regulatory conveyor belt” (SMCR consultations, FOS differential case fees, ICO data access, BNPL, council tax, FCA non-financial misconduct).
- The Consumer Credit Act was viewed as outdated and rigid; modernisation for digital channels (e-mail, chatbots, mobile) is overdue and on its way.
- Early customer engagement is pivotal to resolving arrears; regulators should actively encourage dialogue between customers and creditors/collections agencies.
- Persistent misinformation (e.g., “freeman of the land”, alternative payment myths) continues to hamper resolutions; clearer public information is needed.
- Credit scoring could help by better recognising genuine repayment efforts to distinguish engaged customers from deliberate non-payers.
- Customers should receive equivalent levels of support and forbearance across public and private sector debts – this will help reduce confusion and improve outcomes.
- Data enrichment can materially increase right-party contactability, re-igniting dormant contacts.
- Political volatility and reshuffles risk reactive policymaking; execution, not rhetoric, will determine outcomes.
- Growth is structurally weak; investment (physical, human, digital) and regulatory simplicity are emphasised as critical to improve productivity.
- Monetary policy is easing from restrictive levels but remains uncertain; fiscal rules constrain room for manoeuvre.
- Geoeconomic frictions (tariffs, supply chain shifts) add cost and uncertainty for UK businesses.
- The sector should prepare for continued compliance change while strengthening engagement, data quality, and misinformation counter-measures.
Innovatation
- Contact-data enrichment using non-CRA sources to add 20–35% more phone numbers and e-mail addresses, enabling re-contact of previously “dead” accounts.
- Proof-of-value pilots at no charge, running new data in parallel with existing suppliers so “results speak for themselves”.
- Advocacy to modernise credit scoring so it rewards sustained repayment behaviour and engagement.
- Targeted regulator- and creditor-led campaigns to counter social-media misinformation and promote early engagement.
- Legislative reform to update the Consumer Credit Act for modern digital communications and consent.
- Regulatory simplification and clarity to unlock private investment and reduce execution risk.
Key Statistics
- Data enrichment uplift: +20–35% additional contact numbers and e-mail addresses on top of incumbents.
- Data sources: ~240 non-CRA sources feeding the enrichment database.
- Coverage claims: ~35 million UK individuals; ~76 million e-mails; ~40 million mobiles (speaker references also included “76 million mobiles”).
- Years building the database: ~7 years.
- Political polling reference: Reform “surged to 35% in some polls”.
- Economic inactivity: ~9 million people.
- Tariffs: ~400 UK products using steel, aluminium and copper subject to 25% tariffs.
- Reciprocal tariffs: extension to 100 countries at 10% (context referenced in remarks).
- Possible tariff refund exposure mentioned: ~$150 billion.
Key Discussion Points
- Ongoing cost and complexity of FCA regulation and Consumer Duty compliance versus stated aims to reduce burdens.
- The Consumer Credit Act’s misalignment with digital-first customer communication and consent practices.
- The imperative of early, human engagement to resolve arrears, supported-not inhibited-by regulators.
- Rising misinformation and its operational impact on collections; need for coordinated, authoritative counter-messaging.
- Desire for credit scoring that differentiates repayment efforts from wilful non-payment.
- Inconsistent treatment across public/utility and private sector debts; call for parity of support and forbearance.
- Data on Demand’s “Fintrace” proposition: non-CRA enrichment at scale, positioned to boost reach and collections KPIs via PoV pilots.
- Political reset dynamics: reshuffles, ministerial resignations, and concerns over reactive government without a clear, compelling long-term vision.
- Economic outlook: slower growth relative to history; investment and simpler regulation highlighted as levers for improvement.
- Interest rates easing from restrictive territory amid uncertainty; fiscal rules driving difficult trade-offs.
- Geoeconomic risks: tariffs and supply-chain fragmentation increasing costs and planning uncertainty.
- Execution challenge: strategies must translate into delivery; incrementalism and risk aversion inhibit progress.
Description
This is from the plenary session setting the context for UK collections and financial services: sector campaigns from the Credit Services Association on engagement, misinformation, fairer credit scoring, and parity across debt types; a vendor case on contact-data enrichment for improved reach; and wide-ranging political and economic briefings on reshuffles, regulatory churn, growth constraints, interest rates, and geoeconomic pressures.
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