Description
Loris Raimo, co-founder of Snorkel, discusses the transformation of financial support through digital innovation.
The conversation explores barriers to engagement, the potential of AI and chatbots, and the evolving needs of consumers in financial distress.
Key topics include the role of technology in bridging the gap between lenders and consumers, regulatory challenges, and opportunities to make debt support more accessible and effective.
With a focus on integrating proactive and scalable solutions, the dialogue highlights how the financial services industry can adapt to better serve vulnerable customers.
Find out more about Snorkl -> Here.
Key Takeaways
- Nearly 20 million people in the UK face financial difficulties, with less than one-third engaging with creditors.
- Emotional, knowledge, and practical barriers limit accessibility to debt support services.
- Phone-based support remains the default, but over 90% of borrowing journeys start online.
- Digital tools, especially AI-driven chatbots, offer scalable solutions for personalised engagement.
- Many consumers perceive lenders as unapproachable, hindering early interventions.
- Chatbots foster trust by providing anonymity, making customers more likely to disclose vulnerabilities.
- White-label and independent branding options improve consumer openness and trust.
- Financial education is critical, with many individuals unaware of the implications of debt or creditor interactions.
- Open banking and AI can enable proactive, real-time monitoring to prevent financial crises.
- AI solutions allow personalised assistance while addressing regulatory concerns, such as avoiding debt advice without proper permissions.
- Evidence-based quality assurance through AI enables tracking consumer outcomes and improving support.
- Debt types are shifting towards council tax and utility arrears due to tightened lending markets.
Innovation
- Conversational AI: Blending freeform discussions with structured journeys allows users to engage on their terms.
- White-Label vs Independent Branding: Independent branding builds trust by appearing separate from lenders.
- Open Banking Integration: Using real-time financial data to detect and address financial stress earlier.
- Guardrails in AI: Multi-layered AI ensures compliance with regulatory standards while maintaining conversational quality.
- Proactive Assistance: Shifting from reactive debt collection to preventive financial well-being solutions.
Key Statistics
- 20 million people in the UK are in financial difficulty.
- Less than one-third of these engage with creditors.
- 50% of people fear speaking to creditors will impact their credit score.
- 90% of borrowing is conducted online, yet 70% of debt support remains phone-based.
- Younger demographics prefer online interactions over traditional channels.
Key Discussion Points
- Barriers to accessing financial support include emotional, knowledge, and practical factors.
- Chatbots provide anonymity, encouraging earlier disclosure of financial vulnerabilities.
- The shift in consumer debt patterns, from traditional credit to arrears in council tax and utilities.
- Independent branding builds trust in financial support services.
- Regulatory constraints differentiate financial guidance from debt advice, requiring careful navigation.
- Open banking’s role in proactive financial monitoring and intervention.
- AI-driven solutions enhance customer engagement while scaling support operations.
- Importance of transitioning from self-serve to supported digital journeys.
- Evidence-based QA processes ensure compliance and demonstrate consumer outcomes.
- Using social media trends to better understand consumer trust and preferences.
- Emotional resistance, like shame, hinders consumers from seeking timely support.
- Future vision includes AI taking on a proactive, task-completion role for consumers.
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