Industry Thoughts

Recently clients have been talking to us about overseas outsourcing, SaaS and leveraging technology, such as AI Agents. It is a challenging time for firms at the moment, and it is natural to want to seize upon opportunities for efficiency. While they are all different, there are key risk areas common to these scenarios, which businesses need to consider when designing these arrangements, in order to appropriately manage risk and comply with regulatory expectations.

Acquired.com’s UK Consumer Lending Payments Trends 2025 Report offers a contemporary lens on the evolving world of consumer lending. In a financial environment where borrowers are increasingly digital, discerning, and adaptive, UK lenders are under pressure to modernise their repayment and collections strategies. Our report is a comprehensive guide to the new realities shaping lender and borrower behaviours, drawing insights directly from interviews with 500 active borrowers.

Influencers are everywhere, and increasingly they’re talking about financial products. Sometimes, they even mention a firm’s name. But what happens when your brand is featured in a video you didn’t approve? It might seem like free publicity, but it could also be a regulatory headache.

Commercial lending is rapidly evolving, driven by the pressing need for financial institutions to address climate change and account for their environmental impact. A key element of this shift is “financed emissions” – the greenhouse gas emissions tied to loans and investments. While the concept is clear, accurately calculating and managing these emissions poses significant hurdles, particularly concerning data availability, standardisation, and attributing responsibility.

The UK motor finance industry is facing a reckoning. With the Financial Conduct Authority (FCA) investigating historic selling practices, lenders could be on the hook for billions in redress claims linked to Discretionary Commission Arrangements (DCAs). DCAs were widely used between 2007 and 2021, allowing brokers to adjust customer interest rates to boost their own commissions, but without disclosing this to the borrower. The FCA banned the practice in 2021, but recent court rulings have reignited scrutiny as to whether lenders breached fiduciary duties by failing to disclose commission structures, denying customers the chance to give “fully informed consent.”

In today’s dynamic economic landscape, the importance of sustainable and affordable credit has never been more critical. The FCA expects firms to place good customer outcomes at the heart of their business models and help consumers to navigate their financial lives.

Weighing in at 168 pages, the Government’s 10 Year Health Plan for England is a somewhat intimidating document. But among its 71,000 words, are a couple of sentences which will interest anyone in the consumer credit industry. The plan proposes the establishment of a Neighbourhood Health Centre (NHC) in every community. The first will be established “in the places where healthy life expectancy is lowest” – these are of course most likely to be poorer communities – and will be a “one stop shop”, open at least twelve hours a day and six days a week, offering a range of co-located NHS, local authority and voluntary sector services.

Now more than ever, there is an increase in regulatory scrutiny and a shift in consumer expectations, leading to a transformation in communication within the credit and collections sector. Central to this is conversational AI, which is transforming the way creditors interact with customers, particularly those experiencing financial difficulties.

We’re excited to join this year’s CCTA conference, offering us the opportunity to share more about how StepChange helps members and customers through financial challenges. While over 171,000 people received debt advice from us in 2024, that’s only one part of our broader, more comprehensive support system. We’re not just about one-time fixes, our focus is long-term help, built on meaningful relationships and sustained outcomes.

Amid continued economic uncertainty and an unexpected inflation rise to 3.9% in January, many UK residents are turning to borrowing to help manage their money and make ends meet. In fact, our research found that one in five UK adults – approximately 11 million people – now consider themselves financially vulnerable and at risk of harm due to their personal circumstances, including poor health, life changes like new caring responsibilities, or difficulty handling financial or emotional stress.

The digital space is where consumer credit providers win or lose. In the race to optimise websites, many turn to AI-powered content tools. These promise quick SEO gains and effortless content creation, but relying solely on AI can be a costly mistake. Here’s why human expertise remains crucial for building trust and engagement.

Unsecured debt in the UK reached an average of £4,287 per adult in 2024, marking a troubling trend as household debt has steadily risen over the past two decades. With household debt now exceeding £2 trillion, its impact extends beyond finances, deeply entwining with mental health challenges.