Credit Shift

Paul Sweeney, Co-Founder and Chief Strategy Officer at Webio, and Cormac O’Neill, CEO and fellow founder, delve into the latest developments in the credit industry.

In General Industry News, the hosts discuss the UK economy's lack of growth, reflecting broader trends in the eurozone. A Money and Pensions Service survey reveals that 30% of UK adults missed a payment in 2023, with Credit Card payments being the most common. StepChange Debt Charity identifies a concerning trend as more women seek debt advice, with the rising cost of living being a significant worry, particularly for single parents.

The second section explores BNPL, FinTech, and related news. Klarna's Q3 results showcase a 56% reduction in credit losses as a percentage of Gross Merchandise Value, emphasizing partnerships and innovative features like Klarna Shopping Lens. Affirm Holdings experiences a surge in shares, reporting a 37% jump in net revenue and a narrowing net loss. The European Parliament and Council's consensus on European Digital Identity Wallets marks a pivotal step in streamlining online interactions across the EU. The hosts also spotlight SocialCard from Germany, a balance-based debit card facilitating quick and digital payout of social benefits.

In the AI or Reports Section, the hosts discuss OpenAI's recent updates, including a more sophisticated AI model and customizable digital assistants. They examine the potential impact on businesses, particularly those heavily reliant on Generative AI, and hint at an upcoming special episode to delve deeper into this evolving landscape. As the episode concludes, Credit Shift News and Update leaves listeners with a comprehensive overview of the latest happenings in the credit industry and the evolving role of AI.

Sources:  

https://www.nytimes.com/2023/11/10/business/uk-economy-gdp.html 

https://www.reuters.com/business/finance/affirm-shares-surge-after-quarterly-results-beat-estimates-2023-11-09/ 

https://maps.org.uk/en/media-centre/press-releases/2023/one-in-three-missed-payments-on-vital-bills-already 

https://www.creditstrategy.co.uk/latest-news/copy-of-gender-gap-revealed-in-debt-crisis-data 

https://www.credit-connect.co.uk/news/everyday-people-financial-to-acquire-arvato-financial-solutions/ 

https://www.klarna.com/international/regulatory-news/klarna-announces-profitable-quarter-as-it-gears-up-for-biggest-shopping-season-yet/ 

Generative AI News Synthedia https://youtu.be/pR16wgglLm4 

For more information visit: Webio.com

This podcast is produced in partnership with Podlad.com

In this episode of Credit Shift News and Update, Paul Sweeney, the Co-Founder and Chief Strategy Officer of Webio, is joined by his fellow Co-Founder and CEO, Cormac O'Neill.

We kick off the show by reflecting on their company's five-plus years as a remote-first organisation in a world increasingly transitioning to remote or hybrid work settings. We then delve into recent news, events, reports, and trends in the credit industry.

Getting back to credit news. We start by discussing significant developments in the general industry, focusing on inflation trends and the challenges faced by consumers in accessing their financial services providers. Vulnerable consumers appear to be disproportionately impacted by the lack of support from financial institutions, which resonates with the discussions at a recent Vulnerability event in the UK.

Moving on to the second section, Paul and Cormac explore the rise of Buy Now, Pay Later (BNPL) services and its implications. The FCA's research reveals that BNPL users are more likely to accumulate credit card debt and use high-cost credit products. In the USA, credit card interest and late fees have reached alarming levels, particularly affecting consumers with low credit ratings.

In the final section, the hosts share insights from a new report by Accenture and Innovate Finance, highlighting the positive impact of UK FinTech firms on the economy. They address key areas, such as financial inclusion, reducing inequality, and tackling remittance fees. However, the report also uncovers challenges, such as low female representation in the FinTech workforce and concerns about identity verification and lending practices. The hosts express interest in having the report authors on the podcast due to their compelling framing of financial issues impacting individuals and communities.

Tune in to Credit Shift News and Update for an informative and engaging discussion about the latest happenings in the credit industry and how these developments affect consumers and businesses alike.

Sources:  

https://www.creditstrategy.co.uk/latest-news/bnpl-users-more-likely-to-have-missed-payments 

https://www.fca.org.uk/news/speeches/consumer-duty-not-once-and-done 

https://www.cbsnews.com/miami/news/americans-racked-up-more-than-100-billion-in-credit-card-interest-last-year/ 

https://www.fintechnexus.com/uk-fintech-drives-productivity-but-has-a-limited-force-for-good/ 

https://ww2.innovatefinance.com/wp-content/uploads/2023/10/the-fintech-impact-report-working-through-the-worlds-to-do-list.pdf

For more information visit: Webio.com

This podcast is produced in partnership with Podlad.com

With AI revolutionizing all sectors, how does it impact credit, collections, and the entire fintech industry? Terry Franklin, EVP at Qualco Technology, joins us to shed light on this fascinating topic. He shares insights on how Qualco uses analytics-driven fintech solutions and AI to manage non-performing loans, data analytics, and supply chain finance. Terry's stories of applying AI to business processes for enhanced efficiency and customer service are truly enlightening.

We navigate the complexities of AI - its opportunities, its challenges, and its implications on our daily dialogues. From profiling population groups through technology to integrating machine learning across businesses, our exploration of AI is thorough and thought-provoking. Terry also highlights the potential risks and rewards entwined within these AI-infused processes.

As we traverse into the realm of AI ethics and data bias, Terry provides invaluable tips on how organizations can ensure ethical AI usage. He discusses the power of AI in identifying potential conduct risk issues even before they surface and emphasizes the need for quality data in AI models to bypass bias. As we wrap up our conversation, Terry shares his views on emerging trends in data optimization and the evolving landscape of the credit and collections industry. We hope you'll find this discussion as fascinating as we did.

"I think people can understand is somebody in financial hardship or not. But actually somebody's attitude to paying is very different, why somebody will or won't pay. Being able to have the ability to get into understanding that will add value. So there are definitely some scenarios where the deeper you can understand the attitudes or the behaviors of a customer, not just the cold hard facts, the more useful that will be in the way you tailor the interactions thereafter" - Terry Franklin, EVP at Qualco Technology.

Main topics discussed in this episode:

• Using AI for Credit and Collections
• AI's Impact on Client Expectations   
• The Need for Emotional AI Solutions    
• Attitudes Towards Machine Learning in Organizations 
• Practical AI for Conduct Risk Prevention       
• Efficiency Optimization in Various Sectors       
• Emerging Trends in Data Optimization       
• AI for Better Outcomes and Solutions

Connect with Terry Franklin:

https://www.linkedin.com/in/terry-franklin-micm-08401725/

For more information visit:

Webio

Qualco Technology

This podcast is produced in partnership with Podlad.com

In this week’s update, Paul Sweeney tackles important issues impacting UK workers and consumers. One major highlight was the impending 10% increase in the living wage, benefiting over 460,000 workers. The Living Wage Foundation sets this rate, and it's estimated at £12 across the UK and £13.15 in London, higher than the minimum wage of £10.18. Alarming polling results revealed that many below this real living wage rely on food banks, with 60% having visited one in the past year, and 39% regularly skip meals due to financial constraints.

The episode also discussed new obligations for gas and electricity providers to assist customers behind on payments. Ofcom introduced requirements for direct customer contact if payments are missed, as 3.2 million UK households are behind on energy bills. The Credit Services Association's report on vulnerability raised questions about identifying vulnerabilities and emphasized the need for collaboration between the government and energy companies.

In the banking industry, generative AI was found to offer significant benefits, including operational efficiency, cost savings, improved data analysis, and enhanced fraud detection. Finally, Stripe and TrueLayer partnered to offer European open banking payment solutions, reducing the need for individual payment portals. These discussions underscore the importance of fair wages, improved customer service, accurate vulnerability assessments, and technological advancements, highlighting the ongoing challenges and the need for positive change.

Sources:  

https://www.creditstrategy.co.uk/latest-news/latest-news/real-living-wage-increases-by-10

https://www.csa-uk.com/page/vulnerability-inconsistency-report#

https://www.creditstrategy.co.uk/latest-news/latest-news/csa-calls-for-inconsistencies-around-consumer-vulnerability-to-be-addressed

https://ffnews.com/newsarticle/paytech/truelayer-becomes-first-european-open-banking-payment-option-offered-to-stripe-customers/

https://www.prnewswire.com/news-releases/google-clouds-new-banking-survey-finds-c-suites-and-boards-more-involved-in-tech-decisions-due-to-heightened-interest-in-gen-ai-301964308.html

For more information visit Webio.com

This podcast is produced in partnership with Podlad.com

Ever wondered how changing financial landscapes can affect your wallet? Let's embark on a journey with Paul Sweeney and Cormac O’Neill, the brilliant minds behind Webio, as we chart the course of the credit industry.

In the first section, we dissect some alarming news from the IMF about the UK's growth outlook, a sharp decline in house prices, and the looming debt crisis. The Bank of England also raises concerns about default risks for companies, which could have a ripple effect on jobs and profits. On a brighter note, we explore contrasting trends in household savings between the UK and the US, shedding light on the financial landscape.

In the second section, we focus on Payments Modernisation, where we break down the KMPK Report's key findings. Learn about the evolving landscape of payment methods, the rise of real-time payments, and the challenges faced by innovators like Yapily and Truelayer. Discover the changing appetite for single SaaS-based platforms and the persistence of legacy systems as industry stakeholders seek to modernize the payment sector.

Moving on to the third section, we explore the world of Fintech. NatWest partners with Mastercard to offer a seamless click-to-pay experience, enhancing user convenience and security. Meanwhile, Revolut garners attention for its progress toward a UK banking license and regulatory scrutiny. Monzo's second attempt at the US market, along with the hiring of Conor Walsh as the US CEO, underscores the ongoing global expansion of UK fintechs, setting the stage for an intriguing cross-continental test. Stay tuned for all the latest developments in the Fintech sector.

Sources:

https://www.creditstrategy.co.uk/latest-news/uk-to-be-slowest-growing-g7-economy-in-2024 

https://www.ft.com/content/a5972da0-f227-4471-8f5d-af662202f6bd 

https://kpmg.com/uk/en/home/insights/2023/07/payments-modernisation-what-is-the-future-of-payments.html 

https://www.bottomline.com/uk/payments-barometer 

https://businessofpayments.com/2023/10/03/3044/ 

https://thepaypers.com/digital-identity-security-online-fraud/revolut-attracts-fca-scrutiny-over-red-flagged-accounts--1264713? 

https://sifted.eu/articles/monzo-hires-new-us-ceo 

https://www.finextra.com/newsarticle/43114/natwest-enrolls-debit-cards-in-mastercards-click-to-pay 

For more information visit: Webio.com

This podcast is produced in partnership with Podlad.com

This week's news update is hosted by Paul Sweeney and features Webio CEO Cormac O'Neill returns to delve into a range of intriguing topics, news stories, events, reports and trends shaping the credit industry today.

The episode kicks off with a focus on the General Credit Industry News in the UK. Paul and Cormac share encouraging developments in the economic landscape, particularly regarding inflation. They unveil data from the British Retail Consortium (BRC), revealing a substantial decline in food price inflation, dropping to its lowest point since August 2022. Shop price inflation and non-food inflation also follow suit, showing signs of improvement. However, the housing market tells a different story, with house prices experiencing a year-on-year drop and affordability challenges for first-time homebuyers.

Moving on to the BNPL (Buy Now, Pay Later) landscape, the hosts discuss the prevalence of credit usage among UK adults and the potential financial pitfalls of not clearing credit card balances. They highlight initiatives by HSBC UK and Nova Credit, which aim to assist immigrants in building credit history by offering credit cards that leverage international credit histories.

Wagestream's acquisition of Keebo sparks interest as they look to offer credit-building tools to millions of UK residents who lack credit histories. Meanwhile, SAP Fioneer and Mastercard's collaboration in the B2B embedded payments sector indicates rapid innovation and a focus on inclusion and efficiency in the financial sector, with the integration of AI platforms playing a pivotal role.

The podcast's third section explores two interconnected research findings. The hosts delve into the Harvard Business Review's insights on AI in customer interactions, emphasizing the importance of the human touch in loan approval processes. They also discuss the significance of conversational interaction in enhancing customer satisfaction. The hosts point out that AI can streamline processes but should complement the human element, particularly in products or services with identity or symbolic value.

In the final section, the hosts highlight the transition in fintech towards an AI-driven "Sophistication Era." They discuss consumer expectations for advanced services and the transformative impact of AI, particularly in reducing the cost of service. Webio's own experience demonstrates impressive results using Conversational AI.

The episode concludes by shedding light on major moves in the industry, including Visa's venture into Generative AI and Mastercard's partnership with SAP Fioneer in the B2B payments sector. The hosts stress the importance of identifying core competencies and leveraging partnerships to expand into new markets while minimizing risk.

Sources:

https://www.creditstrategy.co.uk/latest-news/food-price-inflation-at-its-lowest-level-since-august-2022

https://www.creditstrategy.co.uk/latest-news/cost-of-a-house-dropped-by-53-in-september

https://www.credit-connect.co.uk/news/poor-credit-scores-cost-up-to-272000-more-over-a-lifetime/

https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.19986.html

https://hbr.org/2023/09/how-ai-affects-our-sense-of-self

https://lsvp.com/the-sophistication-era-of-consumer-fintech/

https://thepaypers.com/online-mobile-banking/sap-fioneer-partners-with-mastercard--1264305

Connect with us

For more information on what we do: Webio.com

This podcast is produced in partnership with Podlad.com

Imagine unlocking the potential of AI in your customer service, identifying dissatisfaction before it even occurs. Welcome to Credit Shift, brought to you by Webio.com

Join host Paul Sweeney for a chat with Andrew Moorhouse, founder, and director of consulting at ALTICAL, who's pioneering the application of conversational science and digital transformation in customer service. Feast your mind with insights about how new technological trends can bring forth opportunities that were once mere fantasies. For instance, imagine being able to offer mental health services to millions through the power of digital transformation.

We're not stopping there. Andrew will guide us through the maze of managing customer contact strategy in the age of digital transformation. He'll reveal the pitfalls of siloed teams, the nuances of vendor marketing propaganda, and the intricacies of call resolution. And if you've ever wondered why some companies turn off their chatbots or WhatsApp services, Andrew has the answer. Get ready as we tackle the contentious topic of voice AI's future.

But what about the human aspect in all of this tech talk? Fear not, Andrew stresses the importance of understanding empathy and customer needs, and how AI can be our ally in these areas. However, there's no sugarcoating the challenges that come with conversational AI. Andrew challenges big enterprises to shift their mindset and understand that technology isn't a magic wand that can fix all customer service issues. Wrapping up with Andrew's insight on intent level orchestration in customer resolution, this episode will undoubtedly leave you with valuable industry wisdom that you can apply in your field. So, tune in and get ready to transform your thinking around digital transformation.

“Meet the customer in their channel of choice but triage the hell out of it so you resolve it in your preferred place of preference. That's the single strongest recommendation I have for anybody is start doing intent level orchestration and mapping out where you want to resolve each agent, not because you can't resolve it on Twitter or Facebook Messenger, but make sure it gets to the place where it can be resolved, and that's where companies are really getting it wrong” – Andrew Moorhouse

Main topics discussed in this episode:

• Embracing Digital Transformation and Conversational AI

• AI Issues in Customer Service Conversations

• Customer Conversations and Channel Shifting Challenges

• Understanding Empathy and Customer Needs

• Customer Conversations and Technological Challenges

• Intent Level Orchestration in Customer Resolution

Sources:

Death of Livechat June, 2022 https://www.linkedin.com/pulse/death-live-chat-andrew-moorhouse/

It’s Time To Rethink Conversational AI, July 2023 https://www.linkedin.com/pulse/its-time-rethink-conversational-ai-andrew-charles-moorhouse/

For more information

visit:

Webio

Altical

This podcast is produced in partnership with Podlad.com

Join Paul Sweeney, co-founder, and Chief Strategy Officer at Webio. In this short episode, Paul ives a run down of happenings in the credit industry.

In this episode, Paul examines the struggle of households with their rent and mortgage payments, the impact of maintained interest rates, and the emotional toll this is taking on individuals. He also examines calls on banks, mortgage lenders, and utilities to lend a hand during the winter months. In addition, he touches on the report from the UK's Energy Security and Net Zero Committee and their recommendations for support and customer service from energy companies.

Paul looks at a fascinating report on the growing popularity and benefits of Buy Now Pay Later (BNPL) schemes, along with the news of Apple’s financial service ambitions. Learn how the BNPL scheme is helping users manage their cash positions and increase their credit scores, and discover how Apple's new Wallet is stepping up the financial service game. Also, get an insight into the updated EU consumer credit directive and what it means for loans and creditworthiness assessments.

Listen in as Paul concludes the episode by discussing the potential of AI in facilitating and complementing lending processes.

Sources:

https://www.credit-connect.co.uk/news/seven-million-households-struggling-to-keep-up-with-rent-or-mortgage-payments/ 

https://www.credit-connect.co.uk/news/half-of-businesses-have-been-negatively-impacted-by-cost-of-borrowing/ 

https://www.credit-connect.co.uk/news/two-in-five-uncomfortable-speaking-to-mortgage-lender-or-landlord-about-budget-pressures/ 

https://cdn.ceps.eu/wp-content/uploads/2023/09/Explainer_new_rules_for_consumer_credit_markets-1.pdf 

https://www.pymnts.com/buy-now-pay-later/2023/from-managing-cash-to-improving-credit-bnpl-helps-consumers-balance-payment-needs/ 

https://9to5mac.com/2023/09/27/apple-wallet-app-uk-bank-balances/

For more information visit:

Webio.com

This podcast is produced in partnership with Podlad.com

Join us for a compelling conversation as Credit Shift host Paul Sweeney is joined once again by Webio CEO, Cormac O'Neill, to examine the latest news, trends, and reports within the credit industry.

From the FCA's recent warning to the insurance industry about poor practices to the UK Competition and Markets Authority's enlightening report on AI Foundation models, we leave no stone unturned. Listen in as we also take a close look at Nationwide's remarkable account offering an 8% interest rate, and the crucial implications of digitalisation in treasury management.

We're also examining the repercussions of the recent drop in fintech funding on startups and larger enterprises alike. Get insights on the value of fintech, the potential of JNAI in the claims process, and the ever-growing compliance requirements. Cormac asks what can LLM’s bring to Amazon’s Alexa smart speakers. This intriguing discussion could provide valuable insights for those in the finance industry, and anyone interested in the growing influence of AI in our everyday lives.

Sources:

https://www.covermagazine.co.uk/news/4126983/fca-sounds-warning-bell-protection-manufacturers-poor-practises

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1185508/Full_report_.pdf

https://www.theguardian.com/money/2023/sep/21/nationwide-launches-8-account-as-battle-for-uks-savings-intensifies#

https://www.finchcapital.com/post/the-return-of-funding-discipline-triggered-the-ecosystem-to-fight-for-profitability-to-survive

https://www.cnbc.com/2023/09/18/morgan-stanley-chatgpt-financial-advisors.html

https://voicebot.ai/2023/09/21/microsoft-copilot-flies-generative-ai-features-across-windows-11-edge-office-and-every-other-microsoft-app/

https://voicebot.ai/2023/09/20/amazon-gives-alexa-a-generative-ai-makeover/

This podcast is produced in partnership with Podlad.com

Could your company withstand the competitive pressures that fintech brings? How capable is your business to partner and participate in multiple ecosystems? In the latest Webio News Update, Paul Sweeney unpacks the increasing costs of the treasury, taking into account factors like risk and compliance management, maintenance and modernization, payment processing, innovation projects, and talent acquisition.

We also discuss the impact of AI, with companies like Ant Financial and Ernst & Young launching tools for wealth management and insurance services and EY Ireland initiating a major AI project.

Switching gears, we direct your attention to the recent UK Credit and Collections Conference 2023 held in Manchester, where Webio held the spotlight as the headline sponsor. We're not just spectators; we also bring you exclusive insights on Webio's nomination for the prestigious title of 'best technology provider' at the Credit Strategy Awards.

Tune in for a riveting dialogue as we draw from various reports and sources, presenting you with a comprehensive understanding of the world of finance, technology, and their exciting intersection. This is an episode that financial aficionados and tech enthusiasts won't want to miss!

Sources:

https://go.capgeminigroup.com/l/95412/2023-09-12/7tbpd6/95412/1694547172idbuBtLE/WPR_2023_web.pdf

https://thepaypers.com/mobile-payments/affirm-partners-with-bookingcom--1264316?

https://www.wealthmanagement.com/technology/ant-unveils-ai-language-model-wealth-management-insurance#:~:text=The%20Jack%20Ma%2Dbacked%20fintech,an%20assistant%20for%20financial%20professionals

https://www.ey.com/en_gl/news/2023/09/ey-announces-launch-of-artificial-intelligence-platform-ey-ai-following-us-1-4b-investment

This podcast is produced in partnership with Podlad.com