Credit Shift (Webio)
Explorez tous les épisodes de Credit Shift
| Date | Titre | Durée | |
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| 03 Nov 2023 | News Update: Navigating Inflation, BNPL and Financial Inclusion | 00:25:57 | |
In this episode of Credit Shift News and Update, Paul Sweeney, the Co-Founder and Chief Strategy Officer of Webio, is joined by his fellow Co-Founder and CEO, Cormac O'Neill. We kick off the show by reflecting on their company's five-plus years as a remote-first organisation in a world increasingly transitioning to remote or hybrid work settings. We then delve into recent news, events, reports, and trends in the credit industry. Getting back to credit news. We start by discussing significant developments in the general industry, focusing on inflation trends and the challenges faced by consumers in accessing their financial services providers. Vulnerable consumers appear to be disproportionately impacted by the lack of support from financial institutions, which resonates with the discussions at a recent Vulnerability event in the UK. Moving on to the second section, Paul and Cormac explore the rise of Buy Now, Pay Later (BNPL) services and its implications. The FCA's research reveals that BNPL users are more likely to accumulate credit card debt and use high-cost credit products. In the USA, credit card interest and late fees have reached alarming levels, particularly affecting consumers with low credit ratings. In the final section, the hosts share insights from a new report by Accenture and Innovate Finance, highlighting the positive impact of UK FinTech firms on the economy. They address key areas, such as financial inclusion, reducing inequality, and tackling remittance fees. However, the report also uncovers challenges, such as low female representation in the FinTech workforce and concerns about identity verification and lending practices. The hosts express interest in having the report authors on the podcast due to their compelling framing of financial issues impacting individuals and communities. Tune in to Credit Shift News and Update for an informative and engaging discussion about the latest happenings in the credit industry and how these developments affect consumers and businesses alike. Sources: https://www.creditstrategy.co.uk/latest-news/bnpl-users-more-likely-to-have-missed-payments https://www.fca.org.uk/news/speeches/consumer-duty-not-once-and-done https://www.fintechnexus.com/uk-fintech-drives-productivity-but-has-a-limited-force-for-good/ For more information visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 06 Oct 2023 | News Update: Webio's Conversational AI Success and Big Moves in the Financial Industry | 00:35:43 | |
This week's news update is hosted by Paul Sweeney and features Webio CEO Cormac O'Neill returns to delve into a range of intriguing topics, news stories, events, reports and trends shaping the credit industry today. The episode kicks off with a focus on the General Credit Industry News in the UK. Paul and Cormac share encouraging developments in the economic landscape, particularly regarding inflation. They unveil data from the British Retail Consortium (BRC), revealing a substantial decline in food price inflation, dropping to its lowest point since August 2022. Shop price inflation and non-food inflation also follow suit, showing signs of improvement. However, the housing market tells a different story, with house prices experiencing a year-on-year drop and affordability challenges for first-time homebuyers. Moving on to the BNPL (Buy Now, Pay Later) landscape, the hosts discuss the prevalence of credit usage among UK adults and the potential financial pitfalls of not clearing credit card balances. They highlight initiatives by HSBC UK and Nova Credit, which aim to assist immigrants in building credit history by offering credit cards that leverage international credit histories. Wagestream's acquisition of Keebo sparks interest as they look to offer credit-building tools to millions of UK residents who lack credit histories. Meanwhile, SAP Fioneer and Mastercard's collaboration in the B2B embedded payments sector indicates rapid innovation and a focus on inclusion and efficiency in the financial sector, with the integration of AI platforms playing a pivotal role. The podcast's third section explores two interconnected research findings. The hosts delve into the Harvard Business Review's insights on AI in customer interactions, emphasizing the importance of the human touch in loan approval processes. They also discuss the significance of conversational interaction in enhancing customer satisfaction. The hosts point out that AI can streamline processes but should complement the human element, particularly in products or services with identity or symbolic value. In the final section, the hosts highlight the transition in fintech towards an AI-driven "Sophistication Era." They discuss consumer expectations for advanced services and the transformative impact of AI, particularly in reducing the cost of service. Webio's own experience demonstrates impressive results using Conversational AI. The episode concludes by shedding light on major moves in the industry, including Visa's venture into Generative AI and Mastercard's partnership with SAP Fioneer in the B2B payments sector. The hosts stress the importance of identifying core competencies and leveraging partnerships to expand into new markets while minimizing risk. Sources: https://www.creditstrategy.co.uk/latest-news/cost-of-a-house-dropped-by-53-in-september https://www.credit-connect.co.uk/news/poor-credit-scores-cost-up-to-272000-more-over-a-lifetime/ https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.19986.html | |||
| 19 Aug 2023 | News Update: The Impact of Embedded Finance and AI on the Credit Industry | 00:18:09 | |
In this week's Credit Shift news update, we explore the rise in mortgage arrears and how the embedded finance revolution can offer solutions to those struggling to find financial help. Our CEO, Cormac O'Neill, offers insightful commentary on the recent uptick in mortgage arrears and the increasing financial pressures homeowners and renters face. Together, we discuss how understanding the individual stories of customers can lead to tailored solutions and improved customer experiences. The episode also covers how the world of embedded finance can provide financial services right when and where people need them, making finance more accessible and inclusive. We also consider the impact of AI on cost reduction and recruitment in the buy-to-let mortgage market. We assess how automation and AI can streamline processes, improve customer service, and explore the potential of AI co-pilots for training and employee retention. With Cormac, we discuss the crucial role of measuring AI outcomes and ensuring that long-term strategies also deliver short-term payoffs. The episode concludes with a discussion on the ethical deployment of AI, a concern shared by many CEOs as they integrate AI into their capital strategies. Tune in for an enlightening discussion on the intersections of finance, technology, and ethics. Further Reading: Deloitte Report: The ecosystem imperative Thanks for listening. Subscribe for the latest news updates For more information, visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 10 Aug 2023 | News Update: Unraveling Credit Invisibility, Financial Exclusion, and the Future of FinTech | 00:08:10 | |
Brought to you by Webio.com, Paul Sweeney navigates the latest stories in the credit industry. Unlock the intricate puzzles around credit invisibility and financial exclusion with us, as we shed light on alarming data revealed in a recent LexisNexis report. Get tuned in to the shocking reality of Northern Ireland's high percentage of 'credit invisibles', the surge in short-term loan applications and the unsettling rise in court judgements due to minor unexpected bills. The episode doesn't stop at revealing the darker edges of finance but also introduces you to the silver lining - the innovative venture capital financing, reshaping the future of short-term loans for SMEs. But wait, there's more! Ever wondered about the critical strategic choices that financial institutions face between outsourcing and maintaining in-house services? Well, we unravel this and draw an interesting parallel to software strategies of bundling and unbundling. This comparison gives us a glimpse of how this dynamic could be a game-changer in the future of the financial services industry. Plus, stay tuned for a sneak peek into our fascinating lineup of upcoming interviews and news updates. This episode is an absolute treasure trove for those who are keen to grasp the complex intersections of finance, technology, and social impact. Don't miss out! This podcast is produced in partnership with Podlad.com The General Industry News A Lexis Nexus Report from March caught my attention and I just wanted to revisit some of the findings from the it. A new credit nexis report draws attention to the fact that younger people and recent immigrants don’t have a credit history. Over 637,000 people can be classified as credit invisibles or unscorables, making them impossible to credit score. I was surprised to see in this report that for Northern Ireland, over 22.9% of the population could be categorised as potentially financially excluded compared to the next highest which was Wales at 14.8%. Digging deeper into the analysis it doesn’t seem that this is related to straight forward income measures, but may reflect a lower rate of current accounts. Meanwhile regions of England that are associated with deprivation and social disadvantage rank relatively favourably on the exclusion measures. The report really makes a case for Local data for local people, and the benefits of data analysis at a regional, even a local authority level. Short term loan applications made to cover essentials rose sharply, by 83 percent between April and June 2022. Young people, less financially secure, renting, is applying on average four times a year to borrow between 500 and £1000. Relatively small unexpected bills can prove to be a tipping point into debt issues for those groups with little or no access to mainstream finance, with payment defaults leading to County Court Judgements (CCJ’s). Around 1.8m CCJ’s have been issued in the UK since Jan 2020, and the volume has more than doubled over the past two years from 2020 to 2022. Some of this rise could be due to pandemic backlogs. FCA warns about Loan Fee Fraud… consumer pays a fee for a loan they never receive, typically resulting in a £260 loss, increase by 26%. The usual warnings to customers are watch out if you are Cold called or emailed, if there are upfront fees involved, or you are asked to pay quickly or with an unusually. My guess is that there is usually a sense of urgency involved in scams. News on late Payments The number of those missing essential payments has now risen to the levels seen last winter, going up to 2.4 million households. Of those that have missed a payment, 2/3’rds has missed more than one in the month of July. Of those that missed a payment, Water... | |||
| 23 May 2024 | News Update: Vulnerable Customers, AI Innovations and Market Scrutiny | 00:24:42 | |
In this episode, Paul Sweeney (Webio CSO) and Delia Jones (Webio COO) discuss the latest credit and finance stories such as vulnerable customer identification and OpenAI's voice assistant. They also touch on the ethics and privacy concerns surrounding AI and data usage, the scrutiny of payment system regulators, and the potential of on-device computing. Takeaways Identifying vulnerable customers and managing conversations appropriately is crucial in the credit industry. Telecom customers often turn to their service providers for information about debt support. MasterCard and Visa are facing scrutiny over their market dominance and fees. Klarna is using AI to draft legal contracts and its employees are using AI tools for communication and marketing. OpenAI has released an impressive voice assistant, but there are concerns about the ethics and privacy of AI and data usage. Visa is introducing initiatives such as flexible credential, tap to confirm identity, and data tokens to enhance payment experiences. On-device computing and personal AI assistants are becoming more prevalent, but trust and control over data usage are important considerations. Chapters 00:00 Introduction and Webio finalist for Credit Award: "Best Technology Provider – Vulnerable Customer Identification" 01:44 General Industry News: Credit Card Balances and Telecom Customer Debt Support 04:07 Scrutiny of MasterCard and Visa 05:05 Klarna's Use of AI in Legal Contracts and Communication 12:19 Visa's Initiatives to Enhance Payment Experiences 14:14 OpenAI's Impressive Voice Assistant and Ethics Concerns 20:51 The Future of AI and Personal AI Assistants 23:57 Conclusion and Invitation to Explore Webio's Interviews Sources https://www.creditstrategy.co.uk/creditawards/credit-awards-shortlist https://www.credit-connect.co.uk/news/outstanding-balances-on-credit-cards-continue-to-increase/ https://www.credit-connect.co.uk/news/telecoms-customers-turning-to-their-providers-for-debt-advice/ https://www.ft.com/content/e3e6a1d6-f412-4ee7-95af-be95db2c0c37 https://www.celent.com/insights/263739649 Produced by: Webio | |||
| 09 May 2024 | NatWest's AI Agent Development: A Look Behind the Scenes | 00:48:20 | |
Chris Booth, the product owner for NatWest Group's AI assistant Cora, discusses the accessibility work NatWest has been doing and the journey of improving their conversational AI. NatWest started by building their own front-end chat interface to make Cora more accessible and usable, allowing users to control such aspects as font size and typing speed. They are now also exploring dynamic interfaces and voice for accessibility to create a more fluid and conversational experience. Chris talks about the challenges of using large language models in customer-facing environments and he further explores the concept of language models and their role in AI systems. The speakers go on to discuss the use of prompting in language models and the need for tools to control and assure the quality of the prompt and response. The conversation then looks into the validation and oversight of AI systems and the speakers discuss the limitations and boundaries of LLMs and the potential impact of multimodal inputs. Takeaways NatWest has built their own front-end chat interface to make their AI assistant, Cora, more accessible and usable. Using large language models in customer-facing environments requires careful governance and risk management. There is potential for creating a trans-organisational repository of conversational content to improve customer experiences. Personalised experiences are a key focus for NatWest, and they are exploring ways to leverage AI to provide personalised financial guidance. Version control is a challenge in AI systems and the use of smaller, more focused models can help address this issue. Understanding the limitations and boundaries of language models is important when building an AI assistant. Multimodal inputs have the potential to greatly impact the capabilities of language models. Agencies, startups, and small businesses can focus on fine-tuning and RAG stages to stay competitive in the AI space. Sound Bites "We had big ambitions on making Cora far more accessible and usable." "We're doing really early stages exploring with mobile. How do we create a much more dynamic, flexible interface?" "We're using it in a lot of ways at the moment. And I think what's so fun and interesting being with Cora and retail is we have by far the highest bar of governance and risk standards." "Multiple small models or tiny models will actually allow you to control because you can keep them small, you can keep them local and they'll do the job for you." Chapters 00:00 Introduction to Chris Booth 06:50 The Journey to LLMs 14:53 The Idea of Artificial Sentience 35:19 Understanding the Limitations and Boundaries of Language Models 41:31 The Importance of Continuous Analysis and Fit For more: Webio: https://webio.com Optima Partners: https://optimapartners.co.uk/ NatWest Group: https://www.natwestgroup.com/ | |||
| 12 Dec 2023 | News Update: Mortgage Trends, AI Regulations, and Poverty Drivers | 00:23:24 | |
Hosted by Paul Sweeney, Co-founder and Chief Strategy Officer at Webio, and featuring Delia Jones, Chief Operating Officer at Webio, this podcast episode delves into several key areas in the credit industry. 1. General Industry News The UK Finance Household Review for Q1 2023 highlighted a significant decrease in mortgage lending and a rise in house prices to an average of £283,615, driven by a shortage in supply. Despite overall high savings, a decrease in deposit levels signals a potential reduction in pandemic savings. The report emphasised the uneven distribution of savings across income groups, with a third of private renters unable to afford a month's rent if jobless. Additionally, the use of Buy Now Pay Later (BNPL) schemes has surged for Christmas expenses, leading to a rise in BNPL-related debts and calls for urgent regulation. 2. AI and Legislation A landmark EU Court ruling on GDPR declared automated decision making with personal data in scoring systems as unlawful, emphasising the need for explainable AI models. The EU's AI Act introduces more scrutiny on large AI platforms, requiring transparency in operational mechanisms. The podcast discussed the readiness of the credit and collections industry for regulatory compliance and the balance between innovation and regulation. 3. State of Poverty in the UK The "Two Nations" report revealed an acceleration of poverty drivers during the pandemic, including family breakdown, addiction, worklessness, serious personal debt, and education failure. Despite some positive developments, like lower unemployment rates and improved literacy levels, the nature of employment has shifted towards part-time, insecure jobs. The report also highlighted the rise in economic inactivity due to long-term sickness and mental health issues. The podcast concludes with a focus on the need for empathetic and strategic approaches in financial services and technology to address these wide-ranging challenges. For more information visit: Webio.com Sources: https://www.creditstrategy.co.uk/latest-news/mortgage-lending-declines-sharply-in-q3 https://www.creditstrategy.co.uk/latest-news/house-prices-rise-for-second-month-in-a-row https://www.bighelpproject.com/news/a-third-of-private-renters-would-not-be-able-to-pay-one-months-rent-if-they-lost-their-job https://www2.deloitte.com/us/en/pages/consulting/articles/ai-dossier-government-public-services.html https://www.oecd.org/gov/innovative-government/working-paper-hello-world-artificial-intelligence-and-its-use-in-the-public-sector.htm https://apolitical.co/solution-articles/en/artificial-intelligence-in-public-service-benefits-risks-and-what-to-expect-in-the-future https://www.linkedin.com/pulse/ai-public-sector-potential-pitfalls-buttoninc https://www.sciencedirect.com/science/article/pii/S0740624X22000375 https://www.centreforsocialjustice.org.uk/wp-content/uploads/2023/12/CSJ-Two_Nations.pdf | |||
| 08 Jan 2024 | News Update: Holiday Reflections and Economic and AI Trends for 2024 | 00:46:51 | |
This episode features a conversation between Paul Sweeney, Co-Founder and Chief Strategy Officer at Webio, and Cormac O'Neill, CEO of Webio. They discuss various topics, including: 1. Personal Christmas Experiences: Both share their holiday experiences, highlighting the importance of downtime and relaxation. Cormac mentions reading books, while Paul reflects on spending a quiet Christmas at home. 2. Economic Outlook for 2024: They discuss the Bank of England's decision to maintain the bank rate and project economic trends like inflation and interest rates. They also talk about the impact of these trends on consumers and businesses. 3. Buy Now, Pay Later (BNPL) Trends: They explore the increase in BNPL usage and the potential consequences, such as missed payments and late fees, especially among younger consumers. 4. Impact of AI and LLMs on Various Sectors: The conversation shifts to the potential for AI and Large Language Models (LLMs) to assist in fields like auditing, customer service, and more, rather than replacing human roles. 5. Challenges of Late Payments for SMEs: They discuss a study by NatWest on the impact of late payments on SMEs in the UK, emphasising the importance of efficient process management and automation in mitigating these challenges. 6. Role of Digital Solutions in Business: The importance of digital solutions in streamlining business processes, especially in financial transactions, is highlighted. The discussion also touches on the value of understanding customer behaviour, the importance of tone in communication, and the impact of technological advancements across various industries. Sources:
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| 29 Sep 2023 | News Update: Financial Struggles, BNPL, and the Future of Lending | 00:14:15 | |
Join Paul Sweeney, co-founder, and Chief Strategy Officer at Webio. In this short episode, Paul ives a run down of happenings in the credit industry. In this episode, Paul examines the struggle of households with their rent and mortgage payments, the impact of maintained interest rates, and the emotional toll this is taking on individuals. He also examines calls on banks, mortgage lenders, and utilities to lend a hand during the winter months. In addition, he touches on the report from the UK's Energy Security and Net Zero Committee and their recommendations for support and customer service from energy companies. Paul looks at a fascinating report on the growing popularity and benefits of Buy Now Pay Later (BNPL) schemes, along with the news of Apple’s financial service ambitions. Learn how the BNPL scheme is helping users manage their cash positions and increase their credit scores, and discover how Apple's new Wallet is stepping up the financial service game. Also, get an insight into the updated EU consumer credit directive and what it means for loans and creditworthiness assessments. Listen in as Paul concludes the episode by discussing the potential of AI in facilitating and complementing lending processes. Sources: https://cdn.ceps.eu/wp-content/uploads/2023/09/Explainer_new_rules_for_consumer_credit_markets-1.pdf https://9to5mac.com/2023/09/27/apple-wallet-app-uk-bank-balances/ For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 03 Aug 2023 | News Update: Mortgage Rates, Consumer Debt Trends, and Economic Impacts | 00:10:13 | |
This is Credit Shift News Update, where host Paul Sweeney navigates the latest stories in the credit industry. This week we closer look at the record high mortgage rates, wages and inflation in the UK, and how these are affecting consumers' ability to manage their debt. We explore the impact of these economic challenges on everything from car finance to student loans, and discuss the government's plan to launch a nationwide fuel finder scheme. We also delve into the measures banks are taking to protect themselves from an increase in arrears, and ponder whether people will opt for interest-free or interest-only mortgage repayments. We wrap up with an analysis of current economic news and how the government's efforts to reduce inflation are influencing various economic activities. We share our insights on protective buffers that might help prevent bad debt and late payments from becoming a problem. Plus, we reveal some exciting developments in AI and chat GPT, and discuss how they're transforming the world of credit. Listen in for this informative episode and get a better understanding of these pressing financial trends. The General Industry News
Reporting from The Treasury Committee this week gave us a peek at future reporting of impairment from the big banks
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| 03 Feb 2025 | AI and Digital Debt Collection in 2025 | 00:23:41 | |
In this episode of Credit Shift, Mark Oppermann and Graham Bragg discuss the future of AI in digital debt collection, focusing on the advancements expected by 2025. They explore the lessons learned from 2024, the role of AI in enhancing customer experience, and the importance of understanding AI's capabilities and limitations. The conversation also delves into the impact of conversational summaries and co-pilots, navigating compliance and vulnerability detection, and the overall future of AI in the industry. This episode refers to the webinar that goes into more detail on AI and Digital Debt Collection in 2025. To Watch Webinar On-Demand https://www.webio.com/webinar/winning-in-2025-ai-digital-debt-collection-strategies-that-work Takeaways
Keywords AI, digital debt collection, digital transformation, customer experience, conversational AI, compliance, vulnerability detection, automation, sentiment analysis, technology trends | |||
| 10 Jul 2023 | Introducing Credit Shift: Embracing The Future of Credit Through Digital Transformation | 00:01:54 | |
Welcome to Credit Shift, the podcast tailored for credit industry professionals in the digital era. Hosted by industry expert Paul Sweeney, Chief Strategy Officer at Webio. This podcast aims to tackle the high-level challenges faced by professionals in the credit industry. Brought to you by webio.com, Credit Shift is your go-to resource for navigating the evolving landscape of the credit industry. In each episode, Paul engages in thought-provoking discussions with credit industry leaders, exploring topics such as digital transformation, new business propositions, data strategy, and the forefront of artificial intelligence. Join us as we analyse the shifting competitive landscape in the hyperconnected market and delve into the convergence of chatbots, GPT (Generative Pre-trained Transformer), and customer service. Additionally, we contemplate the potential impact of widespread availability of "buy now, pay later" services across different geographies. Credit Shift is designed to be your compass, guiding you through the intricacies of the modern credit industry. Whether you're seeking in-depth interviews with industry luminaries or concise news updates to keep you informed, this podcast has you covered. With the industry rapidly advancing, Paul ensures that you stay ahead of the game, enabling you to embrace the future of the credit industry. Join Paul Sweeney on this transformative journey as they help you navigate the ever-changing credit industry landscape. Subscribe to Credit Shift today and be part of the conversation that shapes the future of the credit industry. For more information visit Webio Podcast production and editing by podlad.com | |||
| 27 Mar 2024 | News Update: Trust in BNPL, AI Performance and Consumer Duty Challenges | 00:33:28 | |
In this episode, Paul Sweeney (CSO) and Cormac O'Neill (CEO) discuss recent news stories and trends in the credit industry. They provide updates from their recent attendance at a financial PEVC All Things Funding Summit in London. The conversation covers topics such as Customer Duty and the need for early warning systems, the closing gap in performance between OpenAI and other models, the growing significance of brand and trust in borrowing decisions, concerns and challenges of Buy Now Pay Later (BNPL) schemes, and the impact of AI on the contact center industry. Takeaways The BNPL part of the credit industry is seeing a shift towards the importance of brand and trust in borrowing decisions, alongside interest rates. Buy Now Pay Later schemes are gaining popularity, especially among younger customers, but there are concerns about their impact on vulnerable groups and the need for regulation. AI is having an impact on the contact centre industry, reducing the need for new agents and increasing efficiency. However, there is still a need for trained personnel to handle complex cases. The adoption of AI in the credit industry is a gradual process, but it is expected to have a significant effect in the future. Chapters 00:00 Introduction and Updates 01:03 Financial PEVC All Things Funding Summit 06:54 OpenAI Gap Closing 10:25 The Significance of Brand and Trust in Borrowing Decisions 12:19 Concerns and Challenges of Buy Now Pay Later Sources https://www.credit-connect.co.uk/news/bnpl-three-times-as-popular-as-pay-day-loan-lending/ https://synthedia.substack.com/p/inflection-reveals-a-new-model-rivaling https://fintech.lenvi.com/consumer-borrowing-report-2024? https://www.nojitter.com/contact-center-customer-experience/ai%E2%80%99s-impact-contact-center-staffing-%E2%80%93-bittersweet-update | |||
| 01 Oct 2024 | News Update: How AI is Disrupting Traditional Industries AI's Role in Transforming Financial Services | 00:48:05 | |
Summary In this episode of Credit Shift News, Paul Sweeney and Cormac O'Neill discuss the latest trends in the credit industry, focusing on:
Takeaways
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| 20 Feb 2024 | News Update: Insights into the UK Economy, Digital Messaging and Forbearance, Banking Growth and Emerging Technologies | 00:09:56 | |
Paul Sweeney, CSO at Webio, covers a range of topics pertinent to the credit industry and related technological innovations. Key points include: 1. UK Economic Overview: The UK ended 2023 in a recession, albeit not expected to be severe. Inflation is decreasing towards a 2% target, prompting speculation about lower interest rates to ease borrowing costs. 2. Credit and Debit Card Transactions: November 2023 saw a significant increase in credit and debit card transactions compared to the previous year, with contactless payments dominating. Tokenization is highlighted for improving approval rates, indicating a shift away from cash transactions. 3. FinTech and Digital Forbearance: Paul discusses how digital messaging and tools like chatbots are aiding in customer service and forbearance strategies, enabling easier self-service for customers concerned about financial stability. 4. Open Banking and Variable Payments: The host looks at the potential benefits of variable recurring payments facilitated by open banking, including the possibility of reducing the total number of repayments and interest for customers. 5. Banking Growth and Demographics: Monzo's growth is compared to Revolut and Starling, noting the importance of capturing the younger demographic for long-term banking relationships. 6. Emerging Technologies and Payment Trends: Paul explores the distributed ledger technologies, large language model AI, and their intersection with FinTech. The concept of tokenization is discussed as a means of enhancing security and enabling new payment methods. 7. Market Dynamics and Tokenization: Paul touches on the competitive landscape influenced by token technology, highlighting the strategic implications for banks, payment networks, and tech companies. The potential for tokens to create network effects and transform payment flows and digital identity is emphasised. Overall, we cover a broad spectrum of topics, from macroeconomic conditions affecting the credit industry to the nuanced impacts of technology on payment systems and customer engagement strategies. Sources https://www.credit-connect.co.uk/news/uk-ended-2023-in-recession-consumer-credit-reaction/ https://www.creditstrategy.co.uk/knowledge-hub/roundtable-report-theres-only-so-many-levers-you-can-pull-with-forbearance https://thepaypers.com/online-mobile-banking/moneyline-expands-collaboration-with-ordo--1266743? https://businessofpayments.com/ https://www.credit-connect.co.uk/news/credit-card-spending-increased-by-6-2-in-november-2023/ https://sytaylor.substack.com/p/tokentech-the-future-of-finance | |||
| 01 Mar 2024 | Pathways to AI Implementation and Excellence: Ethical, Strategic and Operational Insights with Optima and Fenestra | 00:53:47 | |
In this episode, the hosts Paul Sweeney (Chief Strategy Officer at Webio) and Dan Blagojevic (Director of Decision Sciences & Machine Learning at Optima) and their guest, Javier Campos (Chief Information Office at Fenestra), discuss the barriers to adoption of artificial intelligence and the importance of maturity assessment in AI implementation. They explore the need for a clear rule book or recipe book for the journey to maturity and the role of governance in successful AI implementation. The conversation also looks into the ethical considerations in AI, including fairness and privacy. Paul, Dan and Javier stress the importance of establishing guidelines and principles for ethical AI practices. They discuss the challenges of addressing data gaps for underserved communities and the potential of synthetic data and embedded services to fill those gaps. The discussion concludes with the power of adjacent data in generating valuable insights. They unpack the challenges and limitations of productionising predictive models, particularly in the context of financial, physical, and mental health. They also consider the regulatory and behavioural barriers that hinder the implementation of predictive models in improving outcomes. The importance of effective communication and collaboration between technical and business teams is a key factor in successful projects. Takeaways * Maturity assessment is crucial in AI implementation to identify gaps and set realistic goals. * Ethical considerations, such as fairness and privacy, should be central to AI strategy. * Governance and guidelines are essential for ensuring ethical AI practices. * Synthetic data and embedded services can help address data gaps for underserved communities. * Adjacent data can provide valuable insights and drive innovation in AI applications. Key Moments 00:00 Introduction 01:40 Barriers to Adoption of AI 04:09 The Journey to Maturity 07:44 Stopping Projects to Prioritise AI 09:16 The Design Choices in AI 10:22 Ethics and Fairness in AI 16:51 Real-time Data Access in Conversational AI 19:08 The Impact of AI on Behavior 20:40 Ethical Considerations in AI Strategy 25:57 Ethics and Fairness in Decision-making 26:26 Customer Duty of Care and Fairness 30:03 Fairness in AI Decision-Making 33:24 Privacy and Legitimate Use of Data 34:10 Using Synthetic Data to Fill Data Gaps 39:28 Ensuring Fairness in Conversational AI 41:14 Addressing Data Gaps for Underserved Communities 46:24 Embedded Services for Underserved Communities 48:35 The Power of Adjacent Data 50:00 Challenges in Productionising Predictive Models 51:00 Regulatory and Behavioural Barriers 52:23 Importance of Communication and Collaboration For more: Webio: https://www.webio.com/ Optima: https://optimapartners.co.uk/ Fenestra: https://www.fenestra.io/ This podcast is produced in partnership with Podlad.com | |||
| 25 Aug 2023 | News Update: Rising Costs, Generative AI, and the CEO Perspective | 00:27:04 | |
This week, we have our co-host, Webio CEO Cormac O’Neill, back with us to explore recent news stories, events, reports, and trends in the credit industry. As we navigate the highs and lows of the credit industry. Listen in as we unpack the impact of record-breaking wage growth in the UK, the surge in rental costs, and the worrying increase in tenants with only a month's worth of savings. We also analyse the repercussions of the year's energy cost surges and explore the UK government's initiative to ensure fee-free access to ATMs for all. Additionally, we discuss the importance of data for utility companies and delve into the world of embedded finance. We explore the potential and risks of generative AI in organizations, drawing from research by McKinsey and highlighting companies already reaping its benefits. We also discuss the potential of co-piloting offers and the advantages of niche companies investing in generative AI. The episode concludes with an insightful CEO perspective on the credit business, the current state of the industry, and an exciting sneak peek into our next guest interview. Tune in for this thought-provoking conversation that delves into the heart of the credit industry and its digital transformation. Sources: https://www.credit-connect.co.uk/news/13-million-homes-didnt-turn-on-heating-when-cold-last-winter/ https://www.creditstrategy.co.uk/latest-news/government-sets-out-free-access-to-cash-framework The State of AI in 2023: Generative AI’s Breakout Year: For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 17 Oct 2024 | News Update: AI, Fraud, and Consumer Protection: Addressing the Credit Industry's Biggest Challenges | 00:27:09 | |
In this episode of Credit Shift News, Paul Sweeney and Cormac O'Neill discuss the latest trends and challenges in the credit industry, focusing on scams, consumer protection, cybersecurity, council tax collection, AI adoption in financial services, and the evolving landscape of fraud. They highlight the importance of security and compliance in financial institutions and the need for innovative approaches to tackle these issues effectively. Takeaways
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| 26 Jul 2023 | AI Adoption and the Future of the Credit and Collections Industry | 00:51:17 | |
Are we on the brink of a transformative shift in the credit and collections industry? This question sets the stage for our thought-provoking discussion with industry experts, Dan Blagojevic (Optima Partners) and Chris Warburton (ROStrategy). “The only changes with AI is if you don't adopt it quickly, then customers will change loyalty to someone else. So you've got to be investing in this stuff now, listening to the customers, and if you're not there, then you're going to fall behind.” – Chris Warburton Welcome to the first full episode of Credit Shift, brought to you by Webio.com This conversation is hosted by Webio Chief Strategy Officer Paul Sweeney and explores the role of AI in this sector and the strategic challenges poised by its slow adoption. We delve into the power of AI in credit and collections, underlining the importance of accurate data and advocating for a new perspective on credit and collections' role in a company's brand image. As we discuss the strategic implications of digitizing credit and collections, our guests underscore the necessity for businesses to adapt, re-architect their systems and face the challenges of speed and sustainability. We also engage in a critical dialogue around the balance of growth versus sustainability and its reception at the senior and board levels of companies. We look at the transformative impact of automation in credit and collections, emphasizing the significance of robust data management processes and contingency plans to avoid over-reliance on a single technology. Be sure to join us in this insightful dialogue as we navigate the complex landscape of AI in the credit and collections industry. “My biggest concern with this generative AI process is that customers will be individuals, will be asking ChatGPT and the likes for advice. That will be driving customer behavior. That customer behavior will then feed us as another data asset into the pool of data on which generative AI is being retrained. So the danger is back to the point we were discussing earlier is that there is a big risk there that the generative AI will start learning from its own processes in its own way of thinking” – Dan Blagojevic Main topics discussed in this episode: · Has the Credit and Collections industry adopted to AI? · Shift to Sustainable Growth With AI · Industry Challenges and Adoption of AI · Generative AI and Data Concerns · The Transformational Impact of Conversational AI For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 13 Dec 2023 | Navigating the Data Revolution: Insights from Experian's Head of Data Innovation | 00:51:59 | |
This podcast features Dan Blagojevich, Director of Decision Sciences at Optima Partners, and his co-host Paul Sweeney, co-founder and CSO at Webio, interviewing Marilena Karanika, Head of Data Innovation at Experian. The discussion revolves around leveraging data for better decision-making, particularly in the financial services sector. Marilena emphasises the importance of using data intelligently, especially in light of the fallout from COVID-19 and the cost of living crisis. Key points from the podcast include: 1. Machine Learning and AI in Decision Making: Marilena 's team at Experian has been focusing on large language models, fairness, transparency, and Consumer Duty in AI. They've formed an AI task force including diverse roles to explore these tools. 2. Data Ethics and Security: The importance of balancing innovation with ethical considerations and data security is highlighted. There's emphasis on the responsible use of large datasets and consumer data. 3. Consumer Data and Behaviour: Discussion about how consumer data helps understand and predict behaviour, especially in response to events like COVID-19 and economic changes. 4. Challenges in Data Interpretation: The conversation touches on challenges like government interventions and societal changes affecting data interpretation. 5. Role of Consumers in Data Ecosystem: The shift towards empowering consumers in decision-making about their data and financial products is discussed. This includes a focus on financial literacy and consent. 6. Synthetic Data: Marilena talks about the role of synthetic data in research but sees limited application in areas like credit scoring. 7. Future Trends in Financial Services: The discussion moves towards future challenges, like adapting to technological advancements in user experience and interfaces, and balancing marketing with ethical data use. 8. Generative AI's Impact on Services: The podcast concludes with insights into how generative AI might change customer interaction paradigms in various industries, including finance and mental health. Throughout the podcast, the importance of understanding consumer behaviour, ethical data use, and the evolving role of AI and machine learning in financial decision-making is emphasised. | |||
| 01 Nov 2023 | Exploring the Intersection of AI, Ethics, and Finance with Terry Franklin | 00:51:50 | |
With AI revolutionizing all sectors, how does it impact credit, collections, and the entire fintech industry? Terry Franklin, EVP at Qualco Technology, joins us to shed light on this fascinating topic. He shares insights on how Qualco uses analytics-driven fintech solutions and AI to manage non-performing loans, data analytics, and supply chain finance. Terry's stories of applying AI to business processes for enhanced efficiency and customer service are truly enlightening. We navigate the complexities of AI - its opportunities, its challenges, and its implications on our daily dialogues. From profiling population groups through technology to integrating machine learning across businesses, our exploration of AI is thorough and thought-provoking. Terry also highlights the potential risks and rewards entwined within these AI-infused processes. As we traverse into the realm of AI ethics and data bias, Terry provides invaluable tips on how organizations can ensure ethical AI usage. He discusses the power of AI in identifying potential conduct risk issues even before they surface and emphasizes the need for quality data in AI models to bypass bias. As we wrap up our conversation, Terry shares his views on emerging trends in data optimization and the evolving landscape of the credit and collections industry. We hope you'll find this discussion as fascinating as we did. "I think people can understand is somebody in financial hardship or not. But actually somebody's attitude to paying is very different, why somebody will or won't pay. Being able to have the ability to get into understanding that will add value. So there are definitely some scenarios where the deeper you can understand the attitudes or the behaviors of a customer, not just the cold hard facts, the more useful that will be in the way you tailor the interactions thereafter" - Terry Franklin, EVP at Qualco Technology. Main topics discussed in this episode:
Connect with Terry Franklin: https://www.linkedin.com/in/terry-franklin-micm-08401725/ For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 13 Mar 2024 | News Update: Consolidation, Technology, Disruption, Apple's Finance Kit and Credit Card Legislation | 00:33:23 | |
In this episode, Webio's Paul Sweeney (CSO) and Cormac O'Neill (CEO) discuss the recent European NPL Conference and highlight three key themes: consolidation in the NPL market, regulation in the industry, and the importance of embracing technology. Paul and Cormac also cover topics such as consumer credit and debt levels, new legislation on credit card fees in the USA, subscription accidents, and Apple's integration with personal finance apps. Additionally, they discuss Monzo's recent funding and expansion, as well as the UK government's Debt Fairness Charter. Takeaways ~ Consolidation is a major trend in the NPL market, driven by the need for scale and efficiency. ~ Regulation continues to be a key focus in the industry, with efforts to harmonise regulations across the EU. ~ Technology is playing a crucial role in the non-performing loan industry, particularly in the areas of loan servicing and origination. ~ Consumer debt levels in the UK have decreased, but there has been a shift from credit card debt to overdue utility bills. ~ New legislation in the USA aims to reduce excessive credit card late fees. ~ Accidental subscriptions are a common issue, and clearer legislation is needed to protect consumers. ~ Apple is making strides in the financial industry with its Finance Kit API and integration with personal finance apps. ~ Monzo, a digital-only bank, has raised significant funding and is expanding to the US. ~ Tech companies like Apple and Monzo are disrupting the financial industry and gaining trust from younger consumers. ~ The UK government has introduced the Debt Fairness Charter to ensure fair treatment of individuals repaying personal debt to government departments. ~ Local authorities and councils face challenges in managing debt and may benefit from innovative solutions. ~ The financial industry is moving towards more integrated, automated, and customer-centric processes. ~ Prompt payment and fairness in refund processes should be emphasized by government bodies. Chapters 00:00 Introduction and NPL Conference 01:33 Theme 1: Consolidation in the NPL Market 03:27 Theme 3: Embracing Technology 04:09 Webio's Growing Presence in Europe 04:38 Consumer Credit and Debt Levels 05:56 New Legislation on Credit Card Fees in the USA 08:26 Subscription Accidents and Clearer Legislation 14:24 Apple's Finance Kit and Integration with Personal Finance Apps 20:04 Tech Companies Disrupting the Financial Industry 26:59 UK Government's Debt Fairness Charter 32:48 Conclusion Sources https://www.theguardian.com/commentisfree/2024/mar/03/consumer-debt-in-uk-down-10-percent-bad-news-utility-bill-arrears-up https://www.resolutionfoundation.org/publications/in-too-deep/ https://thepaypers.com/online-mobile-banking/cfpb-lowers-credit-card-late-fees-to-usd-8--1267164? https://www.statista.com/forecasts/1284304/iphone-user-share-in-the-united-kingdom-by-age https://sytaylor.substack.com/p/the-rise-and-fall-of-fastco https://assets.publishing.service.gov.uk/media/65eef3e95b6524100bf21aa8/Debt_Fairness_Charter.pdf | |||
| 11 Sep 2023 | The Psychology of Credit Choices with Sean O’Toole | 01:02:09 | |
Join us on our exploration of the psychological and behavioural aspects of financial services products, with a particular focus on debit and credit cards. Host Paul Sweeney and Dan Blagojevic, together with esteemed guest Sean O’Toole, discuss the utility and emotional value of these products. Drawing from Sean's extensive experience in the US financial services market, we compare how consumers in the US and UK perceive and use rewards cards, cashback cards, debit cards, and credit cards. “One of the things that really built the AmEx franchise was AmEx was one of the few who would actually give a charge card to a young person coming out of college. The fact that you were catching that person at that point in time where they were the only person who would give you access to credit. Probably, if you look at those cohorts, the amount of people who stuck with AmEx over the years, that's probably a high retention rate.” – Sean O’Toole Welcome to Credit Shift, brought to you by Webio.com This week’s special guest is Sean O’Toole. Sean has been a leader at such companies as American Express, First Data, Western Union and Affirm. Sean started, built and sold his own company, Red Wage, back in 2014, which was early into the underserved and unserved market spaces. In this episode, we navigate the dynamic world of financial institutions, examining the impact of their number in the US on the credit card space. We also touch on the rising popularity of 'buy now pay later' offers, discussing the psychology behind them and their appeal to younger consumers. Hear our thoughts on the evolving FinTech landscape, the potential shift in the UK's debit and credit card payments due to university fees, and the unique challenges faced by the US Neobank market. Finally, listen in as we discuss the transformation in the banking landscape, specifically the shift in the prepaid cards market. We highlight how technologies like the iPhone and digital wallets have ushered in a new era of prepaid cards and examine how the proportion of unbanked individuals has changed over time. Our conversation also includes the potential and challenges of data-driven decision-making, the struggles enterprises face in incentivizing executives, and the importance of understanding customers in the credit and collections industry. Main topics discussed in this episode: • Psychology of debit and credit cards. • The rise of buy now pay later. • Changing FinTech and consumer banking landscape. • The challenges of data-driven decision making. • How Financial institutions attract and retain young customers. • How to measure customer value in payments. For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 16 Jul 2024 | News Update: UK Neobanks' Profit, Apple's AI Move and the Rise of AI in Banking | 00:12:19 | |
In this episode of Credit Shift, Paul Sweeney (Webio CSO) highlights the profitability of UK neobanks, Monzo and Starling Bank, as well as online bank Revolut. Paul also mentions the importance of credit monitoring and the potential benefits for companies to offer such services for free. Paul then discusses Apple's withdrawal from the buy now pay later market and its focus on AI with the launch of Apple Intelligence. Sweeney explores the potential impact of AI assistants connected to Apple Wallet and the need for privacy and user experience. The host also mentions the EU's requirement for Apple to allow other AI services on its platform. Lastly, Paul shares insights from Deloitte's State of AI report, emphasising the challenges and benefits of scaling generative AI in organisations. Takeaways UK neobanks Monzo and Starling Bank have reported profitability, driven by growth in their loan books. Credit monitoring can help consumers manage their credit usage and reach their financial goals. Apple has withdrawn from the buy now pay later market and is focusing on AI with the launch of Apple Intelligence. AI assistants connected to Apple Wallet have the potential to disrupt the financial services industry. The EU has required Apple to allow other AI services on its platform. Scaling generative AI brings challenges related to data security, data quality, and worker trust. Generative AI can lead to both productivity gains and strategic impact in organizations. Chapters 00:00 Profitability of UK Neobanks 02:16 The Importance of Credit Monitoring 02:45 Apple's Focus on AI and Apple Wallet 03:14 The EU's Requirement for Apple 09:04 Challenges and Benefits of Scaling Generative AI Sources https://sifted.eu/articles/monzo-results-2024-news https://sifted.eu/articles/starling-profitability-news https://thepaypers.com/payments-general/shopify-amazon-pay-partnership-to-end--1268875 https://www.fintechbrainfood.com/p/apple-intelligence-worked-open-finance | |||
| 22 Sep 2023 | News Update: FCA Warnings, Fintech Funding, and LLM’s Transformative Power | 00:22:39 | |
Join us for a compelling conversation as Credit Shift host Paul Sweeney is joined once again by Webio CEO, Cormac O'Neill, to examine the latest news, trends, and reports within the credit industry. From the FCA's recent warning to the insurance industry about poor practices to the UK Competition and Markets Authority's enlightening report on AI Foundation models, we leave no stone unturned. Listen in as we also take a close look at Nationwide's remarkable account offering an 8% interest rate, and the crucial implications of digitalisation in treasury management. We're also examining the repercussions of the recent drop in fintech funding on startups and larger enterprises alike. Get insights on the value of fintech, the potential of JNAI in the claims process, and the ever-growing compliance requirements. Cormac asks what can LLM’s bring to Amazon’s Alexa smart speakers. This intriguing discussion could provide valuable insights for those in the finance industry, and anyone interested in the growing influence of AI in our everyday lives. Sources: https://www.cnbc.com/2023/09/18/morgan-stanley-chatgpt-financial-advisors.html https://voicebot.ai/2023/09/20/amazon-gives-alexa-a-generative-ai-makeover/ For more information visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 23 Jan 2024 | News Update: Spike in Defaults, Local Councils in Crisis, Fintech's Leap Forward, Digital Banking and AI Chatbot Expectations | 00:32:56 | |
In this week's podcast, Paul Sweeney (CSO) and Cormac O'Neill (CEO) discuss several topics related to the fintech and customer service industries. Here's a summary of the key points: 1. Webio's New UI: Cormac mentions the launch of their new user interface (UI) focused on AI strategy and custom collections language models, which has received positive feedback from users. They plan to provide more details on the platform's capabilities. 2. Mortgage Defaults and Missed Payments: They discuss recent data from the Bank of England, indicating a surge in mortgage defaults and missed payments on credit cards and loans. The cost of living crisis and rising bills contribute to this trend. 3. Insurance Premium Increases: Both Paul and Cormac share their experiences with rising insurance premiums, emphasising the importance of haggling with insurance providers for better rates. 4. Council Tax and Local Councils: The hosts highlight the challenges faced by local councils due to increased non-payment of council tax, with some councils facing insolvency. Webio is exploring ways to help councils with their collections challenges. 5. Fintech Growth: Paul mentions Wise's 40% income increase and discusses the fintech platform Kashable, which offers credit to employees through payroll systems. They discuss the potential for embedded finance solutions within enterprises. 6. Digital Banking Trends: Lloyds Bank reports a shift towards digital channels for banking, with a focus on mobile banking and in-app chats. They emphasize the importance of AI-powered chat solutions for improving customer service. 7. Global Fintech Trends: Paul mentions a report from the University of Cambridge on the future of global fintech. The report highlights the significance of AI, embedded finance, and open banking in the fintech sector. It also discusses the growth of fintech services reaching underserved groups and the need for regulatory innovation. 8. Customer Service Trends: The hosts discuss a study on customer service trends, highlighting the increased expectations of customers regarding AI-powered chatbots. The report spotlights the importance of AI in automating tasks and improving agent effectiveness. 9. AI Implementation in Customer Service: Paul predicts that 2024 will see a shift from hype to actual implementation of AI in customer service. He underlines the importance of meeting customers' high expectations and using AI to enhance customer service. Overall, the conversation covers various aspects of the fintech and customer service industries, with a focus on AI, digital trends, and customer expectations. Sources | |||
| 05 Jun 2024 | News Update: FinTech Developments, Stripe's Evolution and UK Financial Vulnerability | 00:07:25 | |
This podcast episode covers industry news, fintech developments, and the expected impact of GenAI on the UK competitive landscape. Host, Paul Sweeney (Webio CSO), discusses the rise in UK debt repayments, the cost of living pressures, and the financial vulnerability of millions of people. Paul also explores the development of Stripe over the past 10 years and its new product launches. Additionally, our host delves into a new report from London Business School and the Institute of Directors, assessing the expected impact of GenAI on the UK competitive landscape. Takeaways Rise in UK debt repayments and cost of living pressures Financial vulnerability of millions of people Development of Stripe and its new product launches Expected impact of GenAI on the UK competitive landscape Sources https://www.credit-connect.co.uk/news/rise-in-debt-repayments-continues-to-hit-household-budgets/ https://www.credit-connect.co.uk/news/nearly-1-million-people-only-10-a-week-away-from-poverty/ https://jasshah.substack.com/p/fintech-rr-stripe-growth-product https://www.iod.com/app/uploads/2024/05/IoD-LBS-Policy-Paper-Assessing-the-expected-impact-of-generative-AI-on-the-UK-competitive-landscape-90514166d3cf6e8f4ee9211073a9ae30.pdf | |||
| 21 Nov 2023 | News Update: Developments in the Credit Industry, Reports and AI in Customer Engagement | 00:10:37 | |
Paul Sweeney, Co-Founder and Chief Strategy Officer at Webio, discusses the top stories effecting the credit and finance sector this week. Section 1: General Industry News
Section 2: BNPL, FinTech, and Related
Section 3: Reports on Customer Experience
Key Takeaways:
Recommendation: Review these reports for insights on integrating AI and effective design into customer experience strategies. Sources https://www.creditstrategy.co.uk/latest-news/price-cap-forecast-to-rise-by-five-percent https://www.credit-connect.co.uk/news/landlords-and-homeowners-mortgage-arrears-rises/ https://fuse-uploads-public.s3.eu-west-2.amazonaws.com/fuse-vulnerability-report.pdf https://www.blackore.ai/articles/black-ore-emerges-from-stealth-with-60-million-funding | |||
| 15 Sep 2023 | News Update: Treasury, Tech, and Trends | 00:10:31 | |
Could your company withstand the competitive pressures that fintech brings? How capable is your business to partner and participate in multiple ecosystems? In the latest Webio News Update, Paul Sweeney unpacks the increasing costs of the treasury, taking into account factors like risk and compliance management, maintenance and modernization, payment processing, innovation projects, and talent acquisition. We also discuss the impact of AI, with companies like Ant Financial and Ernst & Young launching tools for wealth management and insurance services and EY Ireland initiating a major AI project. Switching gears, we direct your attention to the recent UK Credit and Collections Conference 2023 held in Manchester, where Webio held the spotlight as the headline sponsor. We're not just spectators; we also bring you exclusive insights on Webio's nomination for the prestigious title of 'best technology provider' at the Credit Strategy Awards. Tune in for a riveting dialogue as we draw from various reports and sources, presenting you with a comprehensive understanding of the world of finance, technology, and their exciting intersection. This is an episode that financial aficionados and tech enthusiasts won't want to miss! Sources: https://go.capgeminigroup.com/l/95412/2023-09-12/7tbpd6/95412/1694547172idbuBtLE/WPR_2023_web.pdf https://thepaypers.com/mobile-payments/affirm-partners-with-bookingcom--1264316? For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 15 Jan 2024 | News Update: Challenges of GenAI in Banking, X's Payment Capability, Revolut's US lawsuit and Economic Updates | 00:26:28 | |
Hosts: Paul Sweeney, Co-Founder and Chief Strategy Officer, and Cormac O'Neill, CEO and Co-Founder at Webio Key Discussions: 1. Webio Announcements: Cormac teases with upcoming exciting announcements from Webio, hinting at significant developments that could impact the industry. 2. UK Economic Update: The UK's GDP rose by 0.3% in November 2023, recovering from a 0.3% decrease in October. Retail, car leasing, and computer games sectors performed well, particularly during Black Friday. However, the Federation of Small Business reports increased business running costs, and the British Chamber of Commerce notes a rise in business confidence. 3. Motor Finance Industry Scrutiny: The Financial Conduct Authority is investigating the motor finance industry, particularly focusing on discretionary commission arrangements and potential unfair charges to consumers for loans. 4. Irish SMEs and Debt Repayment: Cormac discusses the challenges Irish SMEs face with the end of warehousing taxation debt from COVID, potentially impacting cash flow. 5. Revolut Class Action Lawsuit: Revolut faces a lawsuit in Illinois, USA, for allegedly unlawfully collecting and storing customers' biometric data, highlighting the importance of responsible data management in fintech. 6. Social Media Platform X's Payment Capability: Discussion on the social media platform X (formerly known as Twitter) planning to launch a peer-to-peer payment capability, aiming to control users' entire financial life. 7. OpenAI's Chat GPT Store: OpenAI launched a GPT store, offering services like credit card recommendations and student loan repayment calculators. This development is seen as a potential game-changer in customer support and search experiences. 8. EY Parthenon Report on Generative AI in Banking: The report reveals how retail and commercial banks view GenAI's opportunities and challenges. Key areas of impact include automating sales-related activities, enhancing technological capabilities, and accelerating innovation. The report suggests banks reimagine customer interactions and explore new revenue streams using GenAI. 9. Challenges in Implementing GenAI: Banks face challenges in resourcing for GenAI activities, with implementation costs and outdated technology architectures being significant barriers. 10. Future Episodes: Paul announces a full roster of interviews for Q1 of 2023, featuring perspectives from various industry practitioners, including those implementing large-scale AI projects. Conclusion: The episode concludes with a reminder to subscribe to the Credit Shift podcast and anticipation for upcoming episodes featuring diverse industry insights. Sources | |||
| 05 Mar 2024 | News Update: Exploring Credit Recovery, Record High Credit Card Complaints, Debt Awareness, AI in Finance, and the Growing BNPL Phenomenon | 00:35:55 | |
In this episode of Credit Shift News and Update, Paul Sweeney (CSO) and Cormac O'Neill (CEO)discuss various news and trends in the credit industry. They provide updates on their own company, Webio, and discuss the recovery of consumer credit, the increase in credit card complaints, and the lack of awareness of debt among adults. They also explore the implementation of AI by Klarna and Microsoft, as well as the growing popularity of digital payments and Buy Now Pay Later services. The episode concludes with insights from the McKinsey 2023 Digital Payments Consumer Survey. Key Takeaways Consumer credit is recovering, with an increase in borrowing and mortgage approvals. Credit card complaints have reached a record high, with many due to unaffordable or irresponsible lending. A significant number of adults do not know how much debt they owe. Klarna's AI implementation has led to increased efficiency and cost savings. Microsoft has introduced Co-Pilot for Finance, offering assistance in financial services. Young consumers are using Buy Now Pay Later services to manage cash flow and gain access to credit. Digital payments have gained popularity, and consumers are trusting tech companies with their financial services. The number of digital wallets used by consumers is expected to decrease. Companies should focus on convenience, traceability, and building trust with customers. Buy Now Pay Later platforms are becoming a starting point for product searches. Chapters 00:00 Introduction and Business Updates 01:03 Consumer Credit Recovery 03:33 Lack of Awareness of Debt 08:10 Digital Payments and Buy Now Pay Later 10:44 Klarna's AI Implementation 23:34 Buy Now Pay Later for Food Shopping 28:32 McKinsey 2023 Digital Payments Consumer Survey 35:19 Conclusion Sources https://www.credit-connect.co.uk/news/credit-card-complaints-hit-all-time-high/ https://www.credit-connect.co.uk/news/nearly-a-third-of-adults-dont-know-how-much-debt-they-owe/ https://www.pymnts.com/study/credit-economy-consumer-payments-spend-management-finance/ | |||
| 01 Sep 2023 | News Update: Credit Card Trends, The Future of E-commerce and LLMs | 00:38:38 | |
Join us this week as our co-host Cormac O'Neill, Webio's CEO, and I explore the recent trends and updates in the credit industry. We kick off with a discussion on FICO's latest credit card market report, examining the upward trend in spending and missed payments. We share our experiences with credit card usage and ponder over the implications for companies and consumers. The spotlight then turns to Klarna, as we discuss its 26% increase in gross merchandise value in the UK and 14% increase across Europe. We continue our discussion by analyzing the future of e-commerce and financial responsibility. We explore Amazon's significant impact on both the e-business and finance markets, and how we're positioning ourselves to assist consumers in finding and purchasing products. We touch upon the Financial Conduct Authority's Duty of Care legislation, its implications for payment providers and embedded services, and what it means for the 'buy now pay later' industry. Finally, we ponder over the AI industry and its future implications. Lastly, we explore the challenges that financial institutions and large banks face in keeping up with technology advancements. We examine the possible risks these institutions might need to take and discuss the transformative potential of moving from code-based systems. We then shift our focus to the impact of AI and Large Language Models (LLMs) on Business Process Outsourcing (BPOs) and enterprises, discussing the potential disruptions, opportunities, and threats. We conclude by considering the importance of closed-loop LLMs for enterprise adoption and the role of AI and BPOs in reshaping the outsourcing industry. Join us for an engaging and insightful discussion. Sources: https://www.fico.com/en/newsroom/fico-uk-credit-card-market-report-may-2023 https://sytaylor.substack.com/p/fintech-food-from-outsourcing-to https://substack.com/inbox/post/136482896 For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 04 Sep 2024 | News Update: The Importance of Data Quality in AI , Managing Expectations in the AI Industry | 00:28:35 | |
In this conversation, Paul Sweeney and Cormac O'Neill discuss various topics related to the financial industry, including the increase in inquiries handled by the Citizens Advice Bureau, the decline in cash machine usage, and the challenges and benefits of implementing AI in organizations. They also touch on Apple's upcoming update and the potential impact of OpenAI's ChatGPT 5.0. The conversation concludes with a discussion on the importance of data quality and the time it takes for organizations to realize the benefits of AI. Takeaways The Citizens Advice Bureau in England and Wales saw a 10% increase in inquiries, indicating a rise in inbound customer interactions. Cash machine usage is declining, with a 7.7% decrease in transactions and a 5.2% decrease in the number of machines. Apple's upcoming update may introduce new AI features that could redefine how users interact with technology. Implementing AI in organizations can help improve productivity and customer service, but it requires overcoming technical debt, acquiring AI skills, and addressing data quality issues. The expectations surrounding AI technology, fueled by massive fundraisers like OpenAI's, need to be tempered with the understanding that AI implementation takes time and effort. Sound Bites "A 10% increase in inquiries means that people are going to see even higher volumes of inbound inquiries in the following year." "The decrease in cash machines indicates a move to other forms of interactions like digital on mobile apps." "Apple's new features could signal the birth of a real assistant, not just Siri, creating another layer between companies and their end users." Chapters 00:00 Introduction and Summer Break 00:53 Rise in Inquiries and Decline in Cash Machine Usage 06:25 Apple's Upcoming Update and the Potential of AI 12:20 Challenges and Benefits of Implementing AI in Organizations 19:52 The Importance of Data Quality in AI 24:11 Managing Expectations in the AI Industry Sources https://www.apple.com/apple-intelligence/ https://linas.substack.com/p/fintechpulse695? https://www.publicissapient.com/insights/banking-actionable-genai-report
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| 14 Feb 2024 | News Update: Insurance Companies' Duty of Care, Barclays & Tesco Bank Merger, Fintech and AI News | 00:26:40 | |
This episode of Credit Shift News features Paul Sweeney, Chief Strategy Officer at Webio, and CEO Cormac O'Neill, discussing recent developments in the credit industry They cover a range of topics: Discretionary Commission Arrangements (DCAs): The hosts highlighted concerns around brokers increasing their commission through interest adjustments not beneficial to buyers. Martin Lewis's BBC program reportedly led to over 260,000 complaints, emphasising the unpredictability of service demand. Financial Conduct Authority (FCA) on GAP Insurance: It was announced that insurance firms agreed to pause sales of GAP insurance after finding a low claims payout rate, suggesting unfair value to customers. Barclays and Tesco Bank Merger: Paul and Cormac discussed the implications of Barclays acquiring Tesco Bank, affecting over 5 million customers and 2,800 employees, with a focus on expanding unsecured loan products and leveraging Tesco's ClubCard program. Buy Now, Pay Later (BNPL) and Fintech News: The hosts mentioned Affirm's strong Q4 2023 results, discussing increased usage and flat delinquencies among BNPL services. They highlighted the potential for low brand loyalty among payment providers and the impact of high card processing fees on UK retailers. Digital and Data Sovereignty: Paul and Cormac touched on the concepts of digital sovereignty, data sovereignty, and the coined term "AI sovereignty," discussing the importance of compliance and control over digital technologies and data. Generative AI and Open Banking: They noted sluggish adoption rates of open banking despite its potential, with a focus on the transformative capabilities of AI and the need for companies to navigate sovereignty issues effectively. The conversation also included lighter moments, such as a Valentine's Day wish, and practical insights into managing customer interactions and the future of digital and AI technologies in business strategy. This episode emphasises the need for fairness, transparency, and strategic planning in the evolving arena of credit and financial services. Sources https://www.creditstrategy.co.uk/knowledge-hub/predicting-the-unpredictability-of-customer-behaviour https://www.credit-connect.co.uk/news/fca-clamps-down-on-gap-insurance-providers/ https://brc.org.uk/news/finance/payments-survey-2023-1/ https://www.pymnts.com/news/artificial-intelligence/2024/contradictions-rule-as-ai-meets-the-future-of-work/ https://ffnews.com/thought-leader/open-banking-in-the-uk-where-are-we-after-6-years/ https://www.accenture.com/us-en/insights/cloud/sovereign-cloud | |||
| 10 Nov 2023 | News Update: Worrying Economic Trends, EU's Digital Identity Mandate & Game Changing AI | 00:29:27 | |
Paul Sweeney, Co-Founder and Chief Strategy Officer at Webio, and Cormac O’Neill, CEO and fellow founder, delve into the latest developments in the credit industry. In General Industry News, the hosts discuss the UK economy's lack of growth, reflecting broader trends in the eurozone. A Money and Pensions Service survey reveals that 30% of UK adults missed a payment in 2023, with Credit Card payments being the most common. StepChange Debt Charity identifies a concerning trend as more women seek debt advice, with the rising cost of living being a significant worry, particularly for single parents. The second section explores BNPL, FinTech, and related news. Klarna's Q3 results showcase a 56% reduction in credit losses as a percentage of Gross Merchandise Value, emphasizing partnerships and innovative features like Klarna Shopping Lens. Affirm Holdings experiences a surge in shares, reporting a 37% jump in net revenue and a narrowing net loss. The European Parliament and Council's consensus on European Digital Identity Wallets marks a pivotal step in streamlining online interactions across the EU. The hosts also spotlight SocialCard from Germany, a balance-based debit card facilitating quick and digital payout of social benefits. In the AI or Reports Section, the hosts discuss OpenAI's recent updates, including a more sophisticated AI model and customizable digital assistants. They examine the potential impact on businesses, particularly those heavily reliant on Generative AI, and hint at an upcoming special episode to delve deeper into this evolving landscape. As the episode concludes, Credit Shift News and Update leaves listeners with a comprehensive overview of the latest happenings in the credit industry and the evolving role of AI. Sources: https://www.nytimes.com/2023/11/10/business/uk-economy-gdp.html https://www.creditstrategy.co.uk/latest-news/copy-of-gender-gap-revealed-in-debt-crisis-data Generative AI News Synthedia https://youtu.be/pR16wgglLm4 For more information visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 19 Mar 2024 | Addressing Financial Distress Through Digital Engagement and Collaborative Solutions: Insights from Citizens Advice CEO | 00:55:53 | |
Alison Dunn, CEO of Citizens Advice Gateshead, discusses the structure and scope of Citizens Advice and the challenges they face in managing a wide range of services. Alison highlights the misconceptions about Citizens Advice being a homogenous group and explains that each local charity within the network is independent and can look and feel different. Alison also emphasises the importance of out-of-hours support and the barriers people face in seeking help and making contact. She shares insights into the complex issues clients bring, the need for empathy and understanding, and the impact of rising costs on household income, including the poverty premium. The conversation explores the factors that contribute to higher expenses for individuals living in poverty, such as insurance costs, limited access to affordable credit, and the inability to afford basic necessities. It also highlights the importance of accessible advice and information for low-income individuals and the challenges faced by advice agencies in providing support. The hosts and guest also look into the impact of debt on mental health and the need for creditors to adopt trauma-informed approaches. Additionally, the role of technology in improving financial services is discussed, with a focus on the potential of AI and automation to enhance customer experiences and support agents. Takeaways Out-of-hours support is crucial in providing assistance to individuals who may not be available during traditional working hours. Barriers to seeking help and making contact include embarrassment, feeling overwhelmed, vulnerability, and having multiple challenges. Digital channels can serve as a door opener, allowing individuals to engage and eventually transition to more meaningful conversations. Rising costs, such as mortgage payments and utilities, have led to an increase in middle-income earners seeking assistance from Citizens Advice. The poverty premium imposes additional costs on low-income households, exacerbating the difficulties of managing on a limited budget. Geographical and demographic factors can lead to higher expenses for individuals living in poverty, including increased insurance costs and limited access to affordable credit. Low-income individuals often struggle to afford basic necessities and may face additional challenges such as higher transportation costs and limited access to supermarkets. Accessible advice and information are crucial for individuals facing financial difficulties, and collaboration between creditors and advice agencies can help ensure support is available. Debt can have a significant impact on mental health, and creditors should adopt trauma-informed approaches to engage with individuals in financial distress. Technology, including AI and automation, has the potential to improve financial services by enhancing customer experiences and providing personalized support. Chapters 00:00 Introduction and Overview 00:52 Structure and Scope of Citizens Advice 03:29 Services Offered by Citizens Advice 04:49 Challenges of Managing a Wide Range of Services 05:44 Importance of Out-of-Hours Support 08:01 Barriers to Seeking Help and Making Contact 09:12 Uncovering Multiple Issues and Root Causes 11:46 Digital Channels as a Door Opener 12:53 Protecting Face-to-Face Services 14:11 Middle-Income Earners Seeking Assistance 21:14 Impact of Rising Costs on Household Income 23:39 The Poverty Premium 27:11 Factors Contributing to Higher Expenses 29:07 Cost of Living for Low-Income Individuals 33:37 Importance of Accessible Advice and Information 36:20 Impact of Debt on Mental Health 37:54 Challenges Faced by Advice Agencies 43:28 Role of Technology in Financial Services | |||
| 30 Jan 2024 | News Update: Debt by the Numbers, The Digital Divide and Poverty Premium | 00:28:47 | |
This podcast episode features Paul Sweeney (CSO) and Cormac O'Neill (CEO) highlighting industry news and focusing on the financial struggles of different consumer groups. Key points include: Renters vs Homeowners: A significant gap in financial stability, with renters more likely to miss essential payments. Energy Debt: A notable rise in prepay energy customers' debt, highlighting the challenges faced by energy providers and consumers alike. Apple Wallet Changes: Discussion on EU regulations impacting Apple, potentially opening up iPhone NFC chips for other payment services and app sideloading. This could disrupt Apple's financial data collection and affect credit and payment companies. Klarna's Evolution: Klarna's transition from a BNPL service to resembling a traditional credit card company, introducing subscription models like Klarna Plus. Credit Industry Data: Detailed statistics on UK consumer debt, highlighting the vastness of the credit industry and various interest rates. Social Inclusion and Digital Divide: Data on UK adults without bank accounts and limited internet access, emphasising the challenges in digital finance inclusion. Poverty Premium: The additional costs low-income households face, including cash payment fees and prepayment meters. Citizens Advice Bureaus: Increased enquiries about debts, indicating rising financial challenges among the public. The podcast concludes with a preview of the next episode focusing on the human factors in business management. Sources
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| 19 Sep 2024 | News Update: AI's Growing Influence in Credit: Mortgage Trends, Buy-Now-Pay-Later Debt, and Generative AI in Financial Services | 00:13:29 | |
Summary In this episode of Credit Shift News, Paul Sweeney discusses recent trends and reports in the credit industry, focusing on customer experiences in mortgage queries, the rise of buy-now-pay-later debts, and the transformative role of AI and generative AI in financial services. He highlights the importance of data management for successful AI implementation and the potential benefits of AI in improving operational efficiency and customer satisfaction.
Takeaways
Chapters
Sources https://www.credit-connect.co.uk/news/one-in-five-borrowers-say-technology-is-falling-short/ https://www.researchandmarkets.com/reports/5998921/generative-ai-in-financial-services-market-size? | |||
| 03 Oct 2023 | Unpacking Customer Needs in the AI Era with Andrew Moorhouse | 00:55:41 | |
Imagine unlocking the potential of AI in your customer service, identifying dissatisfaction before it even occurs. Welcome to Credit Shift, brought to you by Webio.com Join host Paul Sweeney for a chat with Andrew Moorhouse, founder, and director of consulting at ALTICAL, who's pioneering the application of conversational science and digital transformation in customer service. Feast your mind with insights about how new technological trends can bring forth opportunities that were once mere fantasies. For instance, imagine being able to offer mental health services to millions through the power of digital transformation. We're not stopping there. Andrew will guide us through the maze of managing customer contact strategy in the age of digital transformation. He'll reveal the pitfalls of siloed teams, the nuances of vendor marketing propaganda, and the intricacies of call resolution. And if you've ever wondered why some companies turn off their chatbots or WhatsApp services, Andrew has the answer. Get ready as we tackle the contentious topic of voice AI's future. But what about the human aspect in all of this tech talk? Fear not, Andrew stresses the importance of understanding empathy and customer needs, and how AI can be our ally in these areas. However, there's no sugarcoating the challenges that come with conversational AI. Andrew challenges big enterprises to shift their mindset and understand that technology isn't a magic wand that can fix all customer service issues. Wrapping up with Andrew's insight on intent level orchestration in customer resolution, this episode will undoubtedly leave you with valuable industry wisdom that you can apply in your field. So, tune in and get ready to transform your thinking around digital transformation. “Meet the customer in their channel of choice but triage the hell out of it so you resolve it in your preferred place of preference. That's the single strongest recommendation I have for anybody is start doing intent level orchestration and mapping out where you want to resolve each agent, not because you can't resolve it on Twitter or Facebook Messenger, but make sure it gets to the place where it can be resolved, and that's where companies are really getting it wrong” – Andrew Moorhouse Main topics discussed in this episode: • Embracing Digital Transformation and Conversational AI • AI Issues in Customer Service Conversations • Customer Conversations and Channel Shifting Challenges • Understanding Empathy and Customer Needs • Customer Conversations and Technological Challenges • Intent Level Orchestration in Customer Resolution Sources: Death of Livechat June, 2022 https://www.linkedin.com/pulse/death-live-chat-andrew-moorhouse/ It’s Time To Rethink Conversational AI, July 2023 https://www.linkedin.com/pulse/its-time-rethink-conversational-ai-andrew-charles-moorhouse/ For more information visit: This podcast is produced in partnership with Podlad.com | |||
| 07 Feb 2024 | News Update: The Job of Generative AI, Deepfakes and Cheapfakes, and Mortgage Arrears and Direct Debit Rejections (DDR’s) | 00:26:38 | |
In this podcast featuring Paul Sweeney and Cormac O'Neill, the conversation revolves around recent developments in the credit industry, customer trends, and technological advancements, particularly in conversational AI. They kick off by discussing the relief that January's anticipated loan delinquencies didn't materialise as feared, suggesting an improvement in people's financial management. They also touch upon the increased demand for debt advice, with a noticeable uptick in searches related to scams, debt relief, and bankruptcy, indicating growing public concern over financial security. Mortgage arrears and cost of living: The hosts transition to industry-specific insights, highlighting a significant rise in mortgage arrears and direct debit rejections, signalling a worsening financial situation for many. This observation contrasts with their initial optimism, pointing to underlying economic pressures on consumers. The discussion further delves into the cost-of-living crisis, noting that a significant portion of families end the month with little to no disposable income, underscoring the escalating financial strain on households. Gartner weigh in on GenAI: Attention then shifts to technological advancements, particularly in conversational AI and its application within customer service sectors. They reference Gartner's forecasts on the rapid adoption and transformative impact of generative AI on customer service roles, projecting a substantial reduction in the need for human agents due to efficiency gains from AI integration. Deepfake and Cheapfake: The conversation also explores the emerging threats of deepfakes and sophisticated scams, emphasising the need for financial institutions to bolster security measures against such frauds. The hosts advocate for enhanced communication strategies and technological safeguards to protect consumer data and financial assets. Human and Digital Agent Collaboration: Finally, the discussion highlights a scholarly article on the collaboration between human and digital employees, suggesting that transparent and effective communication between AI and human agents can significantly enhance customer satisfaction and service delivery. Throughout, Paul and Cormac emphasise the dynamic interplay between technological innovation, customer service improvement, and the ongoing challenges posed by the financial pressures on consumers, underscoring the need for strategic adaptation and proactive measures in addressing these complex issues. Sources https://www.credit-connect.co.uk/news/mortgage-arrears-rose-in-fourth-quarter-of-2023/ https://www.credit-connect.co.uk/news/demand-for-debt-advice-service-surged-34-in-first-week-of-2024/ https://www.credit-connect.co.uk/news/average-family-energy-bills-have-risen-by-63-since-2021/ https://www.gartner.com/en/newsroom/press-releases/2023-07-31-gartner-says-conversational-ai-capabilities-will-help-drive-worldwide-contact-center-market-to-16-percent-growth-in-2023 https://www.pindrop.com/deepfake https://journals.sagepub.com/doi/10.1177/10946705241229419 | |||
| 26 Oct 2023 | News Update: Living Wage, Energy Concerns, and AI in Banking | 00:09:49 | |
In this week’s update, Paul Sweeney tackles important issues impacting UK workers and consumers. One major highlight was the impending 10% increase in the living wage, benefiting over 460,000 workers. The Living Wage Foundation sets this rate, and it's estimated at £12 across the UK and £13.15 in London, higher than the minimum wage of £10.18. Alarming polling results revealed that many below this real living wage rely on food banks, with 60% having visited one in the past year, and 39% regularly skip meals due to financial constraints. The episode also discussed new obligations for gas and electricity providers to assist customers behind on payments. Ofcom introduced requirements for direct customer contact if payments are missed, as 3.2 million UK households are behind on energy bills. The Credit Services Association's report on vulnerability raised questions about identifying vulnerabilities and emphasized the need for collaboration between the government and energy companies. In the banking industry, generative AI was found to offer significant benefits, including operational efficiency, cost savings, improved data analysis, and enhanced fraud detection. Finally, Stripe and TrueLayer partnered to offer European open banking payment solutions, reducing the need for individual payment portals. These discussions underscore the importance of fair wages, improved customer service, accurate vulnerability assessments, and technological advancements, highlighting the ongoing challenges and the need for positive change. Sources: https://www.creditstrategy.co.uk/latest-news/latest-news/real-living-wage-increases-by-10 https://www.csa-uk.com/page/vulnerability-inconsistency-report# For more information visit Webio.com This podcast is produced in partnership with Podlad.com | |||
| 01 Dec 2023 | News Update: Rising Debt Levels and The Future Of Payments Report | 00:36:14 | |
In the podcast episode of Credit Shift News Update, hosted by Paul Sweeney, Co-Founder and Chief Strategy Officer at Webio, and featuring Cormac O'Neill, CEO and Co-Founder, the discussion centers around recent trends and challenges in the credit industry. Key points include: 1. Energy Crisis and Household Debt: The UK's energy price cap increase and the resultant impact on households, with a significant portion of people struggling with energy debt and unable to repay overdue energy bills. 2. Credit Card Debt: Rising everyday expenses leading to increased reliance on credit cards, with many households, especially those with children, facing difficulties in repayment. 3. Winter Challenges: Cormac O'Neill remarks on the onset of winter adding to the financial strain, with energy bills rising. He mentions the Irish government's initiative to alleviate energy bills through credits. 4. Christmas Financial Strain: Discussion on the financial stress during Christmas, with expenses like dinners and presents being a stretch for many families. 5. Data Privacy and SMEs: The potential overreach of regulatory requirements on SMEs, especially in the financial services sector, and concerns about privacy with the FCA's proposal for extensive data collection. 6. Buy Now, Pay Later Services: Discussion on the misconceptions around such services, particularly among young users, and the lack of awareness about them being a form of credit. 7. Government Initiatives for SMEs: The UK government's focus on mitigating late payments impacting SMEs, including a policy for large companies to demonstrate a record of timely invoice payments. 8. Fintech Innovations and Challenges: Intuit's integration of virtual tax experts and AI in their services, and the phasing out of their Mint tool in favour of Credit Karma, highlighting trends in the fintech industry. 9. Reports on Payments and Automation: The Future of Payments Review emphasising inclusive payment options, particularly for the elderly, and the Accounts Payable and Receivable Automation Report by American Express, which addresses the benefits and challenges of automation in financial processes. The conversation reflects on the broad impact of economic challenges on households and businesses, emphasising the need for better consumer education, regulatory balance, and innovative solutions in the financial services sector. Sources: https://www.credit-connect.co.uk/news/third-of-adults-dont-think-bnpl-purchases-can-lead-to-debt/ | |||
| 17 Apr 2024 | News Update: Opportunities of Open Finance, Universal Credit and Advancements in Payments Tech | 00:12:05 | |
This episode covers the stories in the credit industry that caught our eye, including overdrafts, interest charges on personal loans, universal credit, FinTech, buy now pay later, and open finance. We highlight the high number of people in the UK who are overdrawn and the expensive nature of overdrafts. We also discusses the impact of interest charges on personal loans and the potential benefits of the new universal credit system. In the FinTech space, the episode explores tap-to-pay solutions, buy now pay later services, and technology innovations in payments. Lastly, it covers the opportunities and benefits of open finance for individuals and small businesses.
Takeaways Many people in the UK are overdrawn and overdrafts can be an expensive way to borrow. Interest charges on personal loans can add up significantly, especially for those with lower credit scores. The new universal credit system in the UK is expected to benefit workers who rent. FinTech innovations include tap-to-pay solutions and buy now pay later services. Technology advancements in payments can improve the payment process and help small businesses with late payments. Open finance has the potential to improve access to finance for individuals and small businesses. Sound Bites
"One in five people in the UK are overdrawn by an average of £697." "A lower credit score could add £2,499 worth of interest on a £3,000 loan." "UK workers who rent are set to be almost £4,000 a year better off with the new universal credit system." Sources https://www.credit-connect.co.uk/news/consumer-spend-1-4bn-on-bank-overdraft-interest-each-year/ https://businessplus.ie/tech/payments-uk/ https://uk.finance.yahoo.com/news/universal-credit-change-money-050028301.html https://cfit.org.uk/wp-content/uploads/2024/02/CFIT-Open-Finance-Blueprint.pdf | |||
| 13 Oct 2023 | News Update: IMF Predictions, Monzo's US Market Entry and Modernizing Payments | 00:26:01 | |
Ever wondered how changing financial landscapes can affect your wallet? Let's embark on a journey with Paul Sweeney and Cormac O’Neill, the brilliant minds behind Webio, as we chart the course of the credit industry. In the first section, we dissect some alarming news from the IMF about the UK's growth outlook, a sharp decline in house prices, and the looming debt crisis. The Bank of England also raises concerns about default risks for companies, which could have a ripple effect on jobs and profits. On a brighter note, we explore contrasting trends in household savings between the UK and the US, shedding light on the financial landscape. In the second section, we focus on Payments Modernisation, where we break down the KMPK Report's key findings. Learn about the evolving landscape of payment methods, the rise of real-time payments, and the challenges faced by innovators like Yapily and Truelayer. Discover the changing appetite for single SaaS-based platforms and the persistence of legacy systems as industry stakeholders seek to modernize the payment sector. Moving on to the third section, we explore the world of Fintech. NatWest partners with Mastercard to offer a seamless click-to-pay experience, enhancing user convenience and security. Meanwhile, Revolut garners attention for its progress toward a UK banking license and regulatory scrutiny. Monzo's second attempt at the US market, along with the hiring of Conor Walsh as the US CEO, underscores the ongoing global expansion of UK fintechs, setting the stage for an intriguing cross-continental test. Stay tuned for all the latest developments in the Fintech sector. Sources: https://www.creditstrategy.co.uk/latest-news/uk-to-be-slowest-growing-g7-economy-in-2024 https://www.ft.com/content/a5972da0-f227-4471-8f5d-af662202f6bd https://www.bottomline.com/uk/payments-barometer https://businessofpayments.com/2023/10/03/3044/ https://sifted.eu/articles/monzo-hires-new-us-ceo https://www.finextra.com/newsarticle/43114/natwest-enrolls-debit-cards-in-mastercards-click-to-pay For more information visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 08 Sep 2023 | News Update: Blockchain, Amazon Pay, and AI's Impact on Payment Systems | 00:30:13 | |
Could the rising fees from Visa and MasterCard be the catalyst that propels blockchain into the mainstream? Join host Paul Sweeney and Webio CEO Cormac O'Neill, to dissect this possibility and more while navigating the evolving landscape of the credit industry. We'll add our two cents on Visa's plan to utilize the Solana blockchain for USDC transactions and the implications this could spell for merchants and consumers alike. Plus, we talk about how a wider range of payment options may be the secret to cutting down transaction costs and why your customers could do with a little help in picking the most efficient one. As we dive into the world of Amazon Pay, we'll share our thoughts on Shopify's recent decision to welcome Amazon into their network and closely examine how this move is stirring up the payments industry. We also look at the potential of AI to overhaul standard card payments infrastructure and opine on the growing need for consumer-first services. And, as self-service chatbots and voicebots gain prominence, we'll be unpacking the HR challenges that come with them, as well as the urgency for extensive training to handle increasingly complex queries. Join us for this rollercoaster ride through the world of credit and payments. Sources: https://fortune.com/crypto/2023/09/05/visa-stablecoin-usdc-solana-worldpay-nuvei-merchants-payments/ https://thepaymentsassociation-25744204.hs-sites-eu1.com/pay360_infographic2024-0? For more information visit: Webio.com This podcast is produced in partnership with Podlad.com | |||
| 10 Apr 2024 | News Update - Gen AI in Banking, Credit Card Transaction Fees, AI Ethics and The Human Touch | 00:35:26 | |
In this podcast episode, Paul Sweeney and Cormac O'Neill cover topics such as company defaults, payment terms, transaction fees, and the adoption of AI in the banking sector. The hosts also explore the concept of Gen AI and its potential impact on various industries. The conversation highlights the importance of trust, ethics, and the human touch in the adoption of AI technologies. Takeaways Company defaults and payment terms are key factors in the credit industry. Visa Card and MasterCard have agreed to cut US transaction fees, which will save merchants billions of dollars. Gen AI has the potential to augment virtually every job in the banking sector. Trust, ethics, and the human touch are important considerations in the adoption of AI technologies. Sound Bites "For every 1% drop in profitability, it could increase payment terms by seven days." "Merchants will be able to charge different prices to customers based on which credit card they use." "LLMs raise the floor, not the ceiling." Sources https://www.theguardian.com/business/2024/apr/05/thames-water-parent-tells-creditors-it-has-defaulted-on-debt https://www.credit-connect.co.uk/drafts/profitability-squeeze-could-extend-business-payment-delays-further/ https://www.irishtimes.com/business/2024/03/26/visa-and-mastercard-agree-30bn-settlement-over-us-transaction-fees/ https://www.credit-connect.co.uk/news/klarna-launches-credit-card-challenge/ https://sytaylor.substack.com/p/generative-ai-word-salads-robinhoods https://reports.jpmorganchase.com/investor-relations/2023/ar-ceo-letters.htm? https://www.americanbanker.com/creditunions/list/banking-on-ai-how-financial-institutions-are-deploying-new-tech | |||