DEMSA Summary: BiFD / Personal Insolvency / DRO hub / Credit Union event / IMLT / Collaborations / Training / Events

Summary – Read the full update here (including all the links & more)

This weeks update discusses various topics, including personal insolvency statistics, upcoming events such as the Credit Union and Community Banking event, and the DRO Hub event with Money Wellness.

It also touches on collaborations and training in vulnerability management and consumer duty, together with Ofgem’s initiative to explore protective measures in the energy market due to rising consumer debt, highlighting considerations like adjusting the energy price cap related to debt costs and tracking impacts of current market crises.

Key Points

  • Emphasis on cyber-resilience in financial sectors post-Consumer Duty implementation.
  • FCA’s stance on ethical responsibility in processing consumer information.
  • Exploration of AI’s transformative impact in financial services.
  • Introduction of new accreditation schemes and their impending deadlines.
  • Discussion on fostering financial resilience, highlighting issues of credit accessibility and debt advice quality.
  • Upcoming events focusing on AI, financial vulnerability, and consumer support initiatives.
  • Recognition of organizations and individuals leading in vulnerability management and consumer support.
  • Training initiatives and collaborations aimed at enhancing consumer support and compliance with new regulations.
  • The role of innovative technology and inclusive design in improving consumer financial experiences.
  • The increasing importance of ‘tell us once’ approaches and data sharing for effective consumer support.
  • Scheduled discussions on debt advice, creditor-voter relationships, and consumer duty implications.
  • Announcements of new compliance standards achieved by financial technology entities.

Key Statistics

  • Energy debt figures reaching their highest ever levels.
  • A 27% decrease in individual insolvencies in September 2023 compared to the previous year.
  • DRO registrations witnessing a 61% increase compared to September 2022.
  • A significant decline in IVA registrations, less than half the number in September 2022.
  • Breathing Space registrations in September 2023 marking a 25% increase from September 2022.
  • Training of over 600 advisers in identifying loan shark activity.
See also  DEMSA Summary: Event recordings / PS24-3 / Collaborations

Key Takeaways

  • The necessity for financial firms to bolster cyber-security measures to protect consumer data.
  • The ethical obligation of firms in handling consumer information, emphasized by the Consumer Duty.
  • AI’s significant role in revolutionizing financial services, necessitating discussions and explorations at industry events.
  • The urgent need for regulated financial entities to apply for new accreditation schemes.
  • Critical evaluation of the current state of debt advice, highlighting the need for quality and consistency.
  • The importance of industry events in facilitating discussions on current hot topics and future strategies.
  • Acknowledgment of efforts and initiatives by various stakeholders in the industry, contributing to improved consumer experiences.
  • The essential role of ongoing training and development for professionals in the financial sector.
  • Innovations and technology integrations being pivotal in enhancing consumer interactions and compliance with regulations.
  • The ‘tell us once’ approach and effective data sharing as crucial strategies for consumer support.
  • The importance of understanding and addressing the nuances of creditor-voter relationships in insolvency scenarios.
  • Compliance with accessibility standards as a critical factor for partnerships and collaborations in the financial sector.

Access all the updates here

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