Lenders not currently seeing cost-of-living impact they expected

These leading figures, operating in a range of spaces including banking and utilities and telecoms, all however agree it’s only a matter of time before the industry feels the full extent of the cost-of-living crisis.  

 
Speaking on a panel focused on managing the risks through the cost-of-living crisis – chaired by broadcaster Krishnan Guru-Murthy – the Lending Standards Board’s head of insight and engagement Anna Roughley said this has created two diverse views on the crisis, firstly the desperate state of customers, and secondly the fact that businesses are not seeing the issues they were expecting.  

When it comes to catching those struggling, the use of new tools and data was seen by many as critical, with Emma Steeley – chief executive of Freedom Finance – explaining how its implementation will allow lenders to know where the inequalities are.  

When using this data, according to Dennis Sanford-Casey – a principal consultant at Equifax – it’s about being proactive. He explained: “It’s not about waiting until someone hits arrears, it’s all about going up stream, getting very proactive, using data assets – third party data suppliers, bureau data suppliers – to understand your customer’s position.”  

The issue of diversity and inclusion was also high on the agenda at the event – which saw more than 400 people in attendance  – with the Federation of Small Businesses’ chair of BAME policy Diana Crouch explaining businesses need to create a culture where people feel safe and share information.  

These improvements in diversity, according to Standard Chartered Bank’s head of supply chain sustainability Susan Tew, ensures businesses are serving their customers better.