ROAR-Insights

FCA Summary The policy statement PS24/2 issued in April 2024 by the UK Financial Conduct Authority (FCA) addresses the augmentation of protections for borrowers experiencing financial hardships. It elaborates on feedback from previous consultations and finalizes rules designed to help those with consumer credit, mortgages, and overdrafts. Key Points The FCA has finalized rules integrating aspects of the coronavirus Tailored Support Guidance into the FCA Handbook, enhancing protections for borrowers in financial difficulty.These rules are primarily aimed at a wide… Read more

FCA Summary The Financial Conduct Authority (FCA) has issued a strategic letter to Consumer Lending firms, emphasizing the need for a thriving, innovative, and safe Consumer Lending market. The letter outlines the current state of the market, key risks, and the FCA’s priorities for improving consumer access to affordable credit and ensuring that lending practices are responsible and fair. It specifically addresses high-cost lending, mainstream consumer credit, and credit unions. Key Points Consumer Lending Market Importance: The Consumer Lending market… Read more

Oplo Whitepaper Summary This document outlines the profound shifts within the UK consumer credit market, identifying an emergent category called “The New Mainstream.” This category encapsulates a significant portion of British consumers who no longer fit traditional prime or near-prime classifications due to evolving credit behaviours and economic conditions. The report, prepared by Oplo in July 2021, challenges outdated segmentation models and calls for a more dynamic approach to consumer credit, advocating for a focus on consumer potential rather than… Read more

Equifax Report The whitepaper delves into the evolution of debt resolution in a digital age, focusing on the integration of data-driven technologies to better manage consumer debt. It highlights the pressing need for creditors to adapt to digital platforms in response to changing consumer preferences and the increasing pressures of financial compliance and the cost of living crisis. Key Points Digital Preference: A significant portion of consumers prefer handling their debt online, aligning debt management with daily digital activities.Technological Integration:… Read more

PWC report Summary This comprehensive report examines the financially under-served population in the UK, highlighting its growth and the significant challenges it faces in accessing credit. Jointly conducted by PwC and TotallyMoney, the research uses a robust methodology to size and characterize this demographic, underscoring the pressing need for industry and regulatory changes to accommodate an increasing segment of society that struggles with financial resilience due to limited credit options and economic pressures. Key Points The financially under-served population in… Read more

PRA Paper and policy statement Summary The consultation paper “CP17/18: Credit risk: the definition of default” from July 2018, outlines the Prudential Regulation Authority’s (PRA) proposed changes to the definition of default in the Capital Requirements Regulation (CRR). The changes aim to align UK practices with the European Banking Authority’s (EBA) guidelines and address variability in the risk-weighted assets calculated by banks using their internal ratings-based (IRB) approaches. Key Points The consultation seeks to update the PRA’s expectations in Supervisory… Read more