Chris Kneen, GM, UKI
Current banking/lending landscape: • The recent paper from the Financial Conduct Authority (FCA) on consumer duty ensures that consumers will be communicated to more clearly, products will be more understandable and the services that financial institutions provide will be clearer. But challenger banks will struggle to make a profit due to the current financial problems and the predicted market crash. There is a question around where the more digitally-savvy challenger banks will end up, as they need to plan how they will grow their market share and become profitable. • London will continue to be the global hub for fintech innovation. Expect continued investment into the fintech market, which will further drive innovation and pave the way for more innovative products. How can financial institutions support their customers? • Traditional banks become very risk-averse amid economic uncertainty, struggling to make loans to small businesses to support them through difficult times. But the need for credit doesn’t go away. Innovation will be necessary as we head into a predicted recession. • One key change is making use of all available data and leveraging AI-powered decision making to address a rapidly changing consumer and business behavior landscape. How lenders leverage new data sources to better understand consumer situations and how to best combine this with AI is key to adapting.
10
Made with FlippingBook Digital Publishing Software