Podcast ¦ Credit Shift: News Update Trust in BNPL, AI Performance and Consumer Duty Challenges

Summary

This podcast discusses recent news, events, reports, and trends in the credit industry. The hosts highlight the importance of having an early warning system to anticipate harm and monitor changes in customer behavior. They also talk about the advancements in AI innovation and the significance of brand and trust in borrowing decisions. The rise of buy now pay later schemes is mentioned, along with the concerns of financial exclusion and managing multiple repayments. The hosts emphasize the need for investment in customer service support and technology to enhance the customer journey.

Key Points

• There is plenty of funding available in the credit industry, and investors are optimistic about the second half of the year.
• Companies need to have an early warning system that can anticipate harm by monitoring changes in customer behavior.
• Open AI’s gap in model performance is closing, with closed models approaching a good enough threshold.
• The ability to mix and match different AI models may be the best option for companies.
• Borrowers now place as much emphasis on brand reputation as they do on interest rates when choosing a lender.
• Buy now pay later schemes are popular, but there are concerns about their impact on vulnerable groups and financial exclusion.
• Trust and brand reputation are crucial in the financial services market.
• Investment in customer service support and technology is needed in the buy now pay later space.
• The ease of payment and customer service experience have a significant impact on customer choice.

Key Statistics

• Over 200 billion pounds were under management at a financial summit in London.

Key Takeaways

• There is an increasing focus on monitoring changes in customer behavior and providing support to customers in financial difficulty.
• The gap in model performance in AI is closing, and companies may need to mix and match different models to meet their needs.
• Brand reputation and trust are becoming as important as competitive interest rates when choosing a lender.
• Buy now pay later schemes are popular but raise concerns about financial exclusion and managing multiple repayments.
• Investment in customer service support and technology is necessary in the buy now pay later space to ensure customer satisfaction and loyalty.
• The ease of payment and customer service experience have a significant impact on customer choice.