This page contains a Flash digital edition of a book.
In Focus Risk

What role for trade associations under the FCA?

The industry has seen much change over recent years, and the trade bodies are perfectly placed to help both the regulators understand the marketplace, and their members navigate the new rules

Jason Wassell Chief executive, BCCA

Consumer credit has always undergone change. Throughout the last century we have seen it change from paper credit vouchers, turning to metal and then to plastic. Now in an era where cash plays less of a role, it seems appropriate that credit can be found on your mobile phone. In some ways consumer credit is just like

any other industry, in that changes can be traced back to a host of reasons that you will find in any academic business study. These include a demand from customers for products to meet new needs, technological advances and, of course, a shift in the way that society views an industry.

Industry changing Those operating in the consumer credit sector will recognise that we have seen all of those trends in recent years. There has been the development of new online platforms that both help lenders manage their business and provide new points of access for the customer. Demand for consumer-credit products is

clear, and this has been made more of an issue as we moved through the banking crisis and mainstream credit dried up. Society discussed the value of credit, as

the debate erupted around payday lending. Those outside of this particular market may have felt that it would have no impact on them. But the discussion about payday lending turned into something bigger; it became a debate about the value of credit. To the media, nearly every debt could be

October 2015

reported as payday loan and just about every lender could be described as a payday lender. For many mainstream journalists this was

their first experience of the world of credit. It was their introduction to interest rates – particularly APR, to the science of credit scoring and the art of collections. Politicians from all sides travelled this steep learning curve, though some found it politically useful to stop along the way. The consequences are being felt by us all

as some pretty fundamental questions are asked. Every step along the customer journey is now up for discussion, all past assumptions are up for debate. In this environment, there has never been

a better time for the trade association to play its role. It is important that they represent the interests of their >> 41

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52