March 2024
“Create new revenue streams, outflank competitors and redefine customer experiences” are just some of the potential benefits of generative AI. In this edition of Insight, Simon Potts’ article highlights areas for review and development and points towards our AI Readiness Assessment and creating your organisation’s own AI vision.
Christian Roelofs pinpoints the challenges of a “Great Wall” of SME refinancing in 2024. With interest rates now much higher, this will place increased strain on customers and the risk of increased bad debt for finance companies. A number of supporting strategies are outlined to protect against downside risk.
Peter Cottle provides detail on the FCA’s review of historic discretionary commission arrangements and its deep impact on the motor finance market. This will not be a quick process. The fallout is unclear but most likely profound, creating both opportunities and threats.
Finally, we explore learnings from the Technology & Innovation Forum meetings over the past 12 months. Simon Harris explains the need for ongoing education and cultural development to form clearer alignment between IT functions and the broader business.
Happy reading and happy Easter!
For forward-thinking asset finance companies, generative AI is rapidly shifting from futuristic possibility to strategic imperative. While the disruptive potential of technologies like generative AI and traditional machine learning is undeniable, realising a true competitive edge requires thoughtfully charting the path ahead.
In a recent session on global insolvencies, a startling projection emerged: the UK's SME debt refinancing requirements in 2024 tower over those of any other country, forming a seemingly insurmountable "Great Wall." This alarming visual, underscores the immense challenges UK businesses face in the coming years as they navigate a landscape of rising interest rates, tightening credit conditions, and uncertain government support. Read more about this critical issue and its potential implications for the UK economy.
At a time when the car industry is settling back into more normal times, with new car production returning to pre-COVID levels, another bombshell has been dropped. On 11 January 2024, the FCA published the policy statement PS24/1 without consultation. The statement sets out temporary changes to handling complaints regarding motor finance cases due to a notable rise in complaints against motor finance companies – encouraged in no small part by claim management firms.
As we approach the first anniversary of launching the online, (and now monthly) format of the Technology & Innovation Forum, a review of our previous content has revealed several recurring themes. While the topics addressed - Organisational Structure, Data, Microservices, and AI - were deliberately chosen based on member requests, the summaries, conclusions, and recommendations that emerged organically from the sessions began to sound remarkably similar ...
Over the coming weeks, members of the team will be attending the following events. If you are going to be there, get in touch and we can say hello.
18 April: Cordoba Awards Leasing Industry Charity Golf Day, Newbury
26 April: Technology & Innovation Forum, online - Bob Compton from Mobilize FS and Matt Laurent from Volvo FS talk about the 3Rs of tech-function resourcing – Recruitment, Reward & Retention. For further details, email Simon.Harris@finativ.co.uk
15 May: Credit Strategy - Car Finance Awards, Manchester
22-23 May: BCR 24th Receivables Finance International, Clifford Chance, London
17 June: Credit Strategy - Credit Week, Celtic Manor
19 June: Bohr Energy Innovation Day: Addressing technical challenges in green energy industry, all things biogas, biomethane and hydrogen
10-11 July: World Biogas Expo, NEC, Birmingham