In Focus Risk
The best thing to happen to the short-term credit sector?
The FCA’s regulatory regime has led to the short-term credit industry attracting more mainstream players
Mark Fiander Vice president of marketing, Lending Stream
mark.fiander @
global-analytics.com
The short-term credit industry has seen one of its biggest shake-ups in decades, resulting in major contractions in customer volumes and management overhauls. How is it that this same industry is now
attracting some of the most ambitious and dedicated professionals from the mainstream financial services sector?
A shift by companies In 2014, The Financial Conduct Authority (FCA) took over regulation of the industry after years of negative stories, such as complaints about advertising, concerns about debt collection, and the ‘rolling over’ of loans. Some predicted at the time that only the largest companies would survive. While the industry has contracted by
62% in terms of loan volume overall, some lenders are experiencing unprecedented growth in market share, and are attracting some of the financial industry’s top talent. I can understand people having doubts
about working in the industry. There are plenty of companies that I would not have worked for in the past, but the regulatory changes weeded a lot of these out. Like any industry, there are great and
not-so-great companies. But I am proud to work for a company where we focus on helping customers with limited options. These companies are meeting the financial
needs of the non-mainstream customer, while treating them with respect and fairness and bringing forth new ways to obtain credit and significantly cheaper rates where possible, while still having robust affordability checks. We have seen remarkable growth in the short-term credit sector, whilst other larger
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www.CCRMagazine.co.uk Neil English joined last year from Lloyds
While the industry has contracted by 42% in terms of loan volume overall, some lenders are experiencing unprecedented growth in market share
players have contracted. Established in 2008, we have grown to become one of the top lenders by revenue with over 1,700,000 loans made in the UK to date.
Strategic appointments Over the past year, we have strengthened the senior team with a string of strategic appointments, from across the mainstream financial-services sector, as we continue to increase our reach into the market.
Banking Group as brand, communications and digital director. He has almost 25 years experience in the financial services sector with previous roles at GE Capital, Marsh & Mclennan, NatWest and RBS. He says: “It was the customer focus that appealed most to me. Our net promoter score is at +70% – higher than many mainstream brands! Our TrustPilot rating is five stars, and 95% of our clients on ReviewCentre would recommend us. That is a very positive sign, and a great marketing opportunity for any company.” Former HSBC Global Banking & Markets
Insight lead Alex Woodcraft has also joined as head of customer and market insight. His previous roles included British Gas and various government departments. We have continued to recruit for middle
and senior management positions from within the mainstream financial services sector over the past 12 months. Chief exective officer, Chris de Boer, says:
“The strategic direction of the industry has changed, over the last few years. It feels like a more level playing field, with fewer competitors taking short-cuts. That has made a difference to the industry that I cannot stress enough. “It has also helped us to find new people
with backgrounds that can really help us keep building our products and serving customers.” CCR
Lending Stream is conducting an informal survey of professionals to find out their reactions to the short- term, high-cost credit sector. You can take the survey online at the following link: https://lendingstream.
eu.qualtrics.com/jfe/form/SV_2nRwe0he6LjY5mZ
September 2017
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