We’ll be hosting another Credit Union Ideas Exchange on 2nd May. If you’d like to come along, book your place. Back in January we had 20 people from 15 credit unions sharing best practice. Key challenges Participants identified growing the loan book as the key challenge. Priorities for 2019 focussed on different ways to achieve … Read moreThe January Ideas Exchange: follow up
Online chat is an application integrated to your website. You can use chat to hold rich text discussions with visitors to your website. Importantly, 40% of online consumers say that having questions answered by a live person is one of the most important features a website can offer. One in five people use online chat … Read moreChoosing online chat
Members want digital. That’s not news. Hundreds of research projects identify mobile-first consumer preferences. And not just for millennials. Importantly there is a growing expectation that credit unions will do more. Members want help to achieve their financial goals. Do you know exactly how members want to interact with your credit union? Almost certainly not. … Read moreUsing Minumum Viable Product to get your website right
Third-sector.co.uk Director, Adrian Davies, has been selected for the 2019 Fellowship Programme at the Finance Innovation Lab. Adrian’s linked company, NestEgg is now working with the Lab to create a more democratic, responsible and fair financial system. Fellows are selected on the basis of their potential to positively disrupt the financial system and pioneer the … Read morethird-sector.co.uk Director joins the Finance Innovation Lab Fellowship
Back office systems that do everything don’t exist. Buying software on the basis that it covers all your business needs is last century’s strategy. IT platforms operating as part of a wider ‘eco-system’ enable you to pick best in class functionality. An eco-system approach enables specialisation. Maintaining a core banking platform is enough to keep … Read moreStill applying last century’s IT strategy?
Open Banking provides an opportunity to educate customers and improve credit decisions. Because Open Banking lets lenders view applicants’ bank transactions there’s no need for paper-based approaches to affordability. But with data scandals an ever-present threat, this information should be used securely and fairly. Read more about our belief in the fair use of data … Read moreMaking Open Banking work for the benefit of your members
Ten years ago I ran a focus group of low income borrowers to understand the impact the Government’s Growth Fund initiative had on credit union members. What suprised me was how much borrowers were willing to pay for convenience of service. I’d assumed that lower interest rates and weekly payments were enough. Removing friction in … Read moreSatsuma goes pear-shaped (slick customer experience isn’t enough)
5 million people were declined for credit last year. Many for good reason; 1/4 of applicants were in financial difficulty. 10% were ‘just surviving’. However 42% were what the Financial Conduct Authority calls ‘financially resilient’. These applicants have savings, insurance and a pension. 7% had assets of £50,000. 8% earn more than £50,000. One in … Read moreGood loan applicants are being turned away
Despite tightening regulations to protect consumers from over-indebtedness, insolvencies for 18 to 34 year olds are up by one third. The Bank of England predicts lenders writing off £30bn of loans. Good conduct requires lenders to take into account the impact a loan would have on a borrower’s budget and ability to meet basic expenditure. … Read moreWhy you need to be concerned about affordability
The data we use for lending decisions in the UK is out of sync with modern realities. Such a narrow approach financially excludes people on higher incomes, losing lenders valuable income. It is ironic that the most digitally included are becoming the new financially excluded. Credit reference agencies scoring systems tend to dislike tenants, especially … Read moreDigitally included but financially excluded?