FR: Since the FCA took over the regulation of the consumer credit industry last year, a series of stricter rules and regulations have been put into place for lenders to adhere to. How has this affected business?
The lending market is going under considerable changes and the FCA is working hard to protect the consumer, which we see as a positive thing. Equiniti Pancredit has always promoted ‘responsible lending’ and our business revolves around helping lenders to ensure that consumers are only offered and granted suitable and affordable loan products. This industry-wide clamp down from the FCA has created increased demand for intelligent loan software systems that can help banks, commercial lenders, intermediaries and price comparison sites to promote responsible lending and improve their organisational efficiency. The integration of loan decisioning technologies can help lenders enhance their customer service offering and reduce costs whilst also allowing them to meet the new changes set out by the FCA, which is gradually pushing irresponsible lenders out of the market.
FR: The lending market is continuing to improve following a rise in consumer confidence. How did you overcome challenges in the market when consumer confidence was at an all-time low?
Like many other businesses, Equiniti Pancredit was affected by the UK’s financial crisis and it was during this time that the firm started to refocus itself on the benefits that intelligent software technology could to bring to banks, intermediaries, lenders and price comparison sites. In an effort to re-build the lending market’s reputation following the recession, Equiniti Pancredit has dedicated itself to improving the overall customer experience as well as giving lenders the opportunity to streamline operations, cut costs and free up internal resources.
Our products help lenders to source the best loan products for customers, ensuring they are affordable and that they are suited to the consumer’s financial circumstances by using an applicant’s credit profile, sourced from Equifax, Callcredit and Experian, to calculate a risk based price or to determine which products an applicant qualifies for. This improves the customer experience and, for lenders, it reduces acquisition costs, increases profits and enhances reputation by demonstrating their commitment to responsible lending.
FR: Do you have any advice for those starting out in the industry?
I have always believed that every person within a business should be treated with respect, as they are all instrumental in the company’s success, whatever their seniority may be. It is vitally important to foster this spirit if the growth of the business is to continue. My knowledge gained prior to working at Equiniti Pancredit has helped me tremendously in my current role; I came to Equiniti Pancredit with financial services and management and coaching experience. This experience taught me to help individuals align their personal attributes with the performance, growth and service ambitions of the business. Trying to align your personal goals with those of the business is a good piece of advice for those starting out. It shows that you’re looking out for your employer, as well as for number one.
FR: How has the acquisition by the Equiniti Group affected the company over the past year, and what will this mean for the future of Equiniti Pancredit?
The Equiniti acquisition, along with the continuous increase in consumer confidence and demand for our services, has allowed us to create many new internal positions. We have already filled 16 new roles since the acquisition and we are looking to further expand our headcount moving into 2016.
Over the past year, we have launched a business process outsourcing solution, loan book securitisation and an electronic signature module, which eliminates all the back and forth with paperwork when a consumer applies for a retail credit agreement. We have also provided the technology behind a loan price comparison site, FairMoney, which uses the applicant’s credit profile to match them to the best loans available for their circumstances. The site was launched to provide a fairer offering to consumers in need of financial support and unlike the majority of comparison websites, it caters for an entire spectrum of applicants, including those who fall into subprime categories, have bad credit ratings or find it difficult to get accepted for a loan for other reasons.
The future of the UK consumer credit market looks positive, so we are developing new products that can provide further reaching support to financial institutions by joining forces with other members of the Equiniti group.
