Lending Standards Board calls for increased focus on financial resilience

In its 2023/24 Business Plan, the LSB also outlined its areas of focus for the year, which will include both financial resilience and digital journeys, as well as ongoing work on the prevention of authorised push payment (APP) scams.  

LSB chief executive Emma Lovell said: “The cumulative upwards creep of inflation, prices and taxes present a longer-term issue for individuals and businesses. Even at the point that inflation is predicted to be brought under control later in 2023, the cost of everyday life is unlikely to reduce and will likely ‘reset’ to a higher level.  

“We will all, individuals and businesses alike, need to adjust to a new economic climate of higher prices and we are urging bankers and lenders to join us in our renewed focus on preventing customer harm.” 

As part of its work, the LSB will undertake a thematic review of digital journeys to ensure these stop vulnerable customers and those entering financial difficulty. This will include an assessment of how digitised and data-driven customer interactions are impacting customer outcomes.  

It will also undertake a significant project cross cutting both the personal and business standards that considers the data and metrics available to firms to identify and assess customers at risk of financial difficulty.