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What will the Loan Industry Look Like in 2017?
2016 was a busy year for the UK lending industry. The Financial Conduct Authority (FCA) continued to tighten regulation, while consumer credit grew at its fastest rate since before the financial crash. As we approach the end of the year, Sarah Jackson, Director, Equiniti Pancredit, looks ahead at the trends and technologies that will shape the lending industry in 2017.
Outsourcing will get smarter
Deloitte’s Global Outsourcing Survey revealed that not only is the use of outsourcing increasing, but attitudes among banks about how they engage with outsourcers is also on the move. Once seen as merely a cost-cutting approach – and make no mistake, this remains a significant motivator – service providers have widened their offerings to provide end-to-end solutions that offer a far greater depth of service support than before. More than ever before, outsourcers are becoming key business enablers that actively promote innovation. This is a key trend that will continue to shape the industry in 2017.
Biometrics in 2017: Not ‘if’ but ‘which?’
Biometrics as a form of authentication has been gathering steam for several years - the more accurate authentication processes are, the less vulnerable the lender is to fraud. Given the speed and convenience of these solutions, biometrics hold a special place in the authentication debate; banks in particular are perpetually seeking ways to enhance their mobile user experience. As these technologies become more practical and cost effective to implement, which biometric modality to implement will become an important decision in 2017.
While fingerprint sensors are the most prevalent in consumer devices, many fintechs are leaning towards voice and face recognition as potentially more accurate alternatives. Behavioural and document recognition would have immense value for lending providers too. These technologies will be an area of major focus in the year ahead.