Podcast ¦ Credit Shift: News Update Consolidation, Technology, Disruption, Apple’s Finance Kit and Credit Card Legislation

Summary

This podcast episode discusses recent news and updates in the credit industry. The hosts attended the NPL conference in London, where they observed three main themes: consolidation, regulation, and behavioral technology. They also discussed research showing that consumer debt levels in the UK have decreased to their lowest level since 1999. In the US, new legislation has been finalized to ban excessive card late fees. Additionally, research from Citizens Advice reveals that many UK adults have accidentally taken out subscriptions in the past year. The hosts also discussed Apple’s latest announcements, including the rollout of an API for developers to access financial information from Apple products and rumors of a major update to Siri.

Key Points:

• Consolidation is happening in the non-performing loan (NPL) industry, driven by tight margins and the need for efficiency.
• Regulation is an ongoing theme in the NPL industry, with an EU directive aimed at harmonizing regulations across the EU.
• Behavioral technology, particularly digitalization, will play a key role in the NPL industry, both in loan servicing and origination.
• Consumer debt levels in the UK have decreased to their lowest level since 1999, but debt has shifted from credit cards to overdue bills.
• New legislation in the US bans excessive card late fees, reducing fees from $32 to $8 on average.

Key Statistics:

• Consumer debt levels in the UK have decreased from 23% of household income in the mid-2000s to 13% today.
• Credit card late fees cost American families over $14 billion per year.
• 26% of UK adults have accidentally taken out a subscription in the past 12 months.
• 71% of UK adults aged 18-19 have an iPhone.

Key Takeaways:

• The NPL industry is experiencing consolidation, driven by the need for efficiency and maximizing returns.
• Regulation in the NPL industry is focused on harmonizing regulations across the EU.
• Digitalization will play a key role in the NPL industry, both in loan origination and servicing.
• Consumer debt levels in the UK have decreased, but debt has shifted from credit cards to other overdue bills.
• New legislation in the US aims to reduce excessive card late fees and curb costs for American families.
• Many UK adults have accidentally taken out subscriptions, highlighting the need for clearer and more forceful legislation.
• Apple’s API for developers allows access to financial information from Apple products, increasing convenience and real-time tracking of finances.
• Apple’s integration of open banking capabilities in the UK demonstrates their focus on financial services.
• Apple’s rumored update to Siri suggests a more powerful assistant that could provide financial advice and assistance.
• Trust in tech providers like Apple may exceed trust in traditional banks among younger generations.
• Consolidation, regulation, and digitalization are key trends shaping the credit industry.
• Consumer behavior is shifting towards digital subscriptions, prompting the need for clearer legislation.
• Apple’s innovations in financial services and voice assistants could have a significant impact on the credit industry.