Satsuma goes pear-shaped (slick customer experience isn’t enough)

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)

Good loan applicants are being turned away

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

Why you need to be concerned about affordability

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