Financial Ombudsman Service’s Post

Some more interesting statistics on the types of complaints we handle here at the Financial Ombudsman Service...

Interesting that credit cards were the most complained-about product in Q1 of 2024. This data is a stark reminder of the ongoing challenges in the sector. It’s been a year since the Financial Conduct Authority's Consumer Duty was implemented, with these key principles at its core: ◼ Positive consumer outcomes ◼ Improved consumer understanding ◼ Adequate consumer support However, the high volume of complaints related to credit cards suggests there is still significant room for improvement.

Over 40% of lending in banks is still manual, leading to inefficiencies in tasks such as data entry and document review. Reduce the manual tasks and increase lending throughput with LA2, the ultimate solution to modernize and streamline the lending process. Read more here https://bit.ly/3X9eEt0 #LA2 #BankingInnovation #StreamlinedWorkflow #AutomationRevolution

This is a critical read for anyone following banking. The proposed rules by the Consumer Financial Protection Bureau on overdraft, late credit card payments and more are so draconian that there will be no choice but to add fees for all consumers to the most basic financial products. Those that will be harmed the most are those who can least afford to pay for basic services. This is a prime example of bad agency leadership single handedly driving policy with dire economic consequences.

By obtaining transaction histories in real-time, lending companies can better serve borrowers with below-average credit scores, often classified as “near-prime.” Additionally, some individuals may have limited interactions with the banking system, making traditional lenders hesitant to offer credit. These groups are more likely to qualify for credit when their loan risks are assessed using transaction data insights. #lending #openbanking #creditworthiness #riskassessment #digitalbanks

Credit card balances bounce back - Fed consumer credit data - In May, consumer credit increased at a seasonally adjusted annual rate of 2.7% to $5.06T. Revolving credit increased at an annual rate of 6.3% to $1.35T, while non revolving credit increased at an annual rate of 1.4% to $3.71T. #banking #creditcards #consumercredit

New credit defaults (accounts three months in arrears) reduced significantly amid more cautious lending behaviour — down from a peak of 10.1% in Q1 2023. Unpack the findings of our H1 2024 Consumer Credit Index for more insight into the fragile consumer credit market: https://lnkd.in/eCDKb5Tf #CreditHealth #CreditTrends #CCI #ConsumerCredit

More banks are expanding their offering through secured lending products to their customers. The process of managing and monitoring these loans and collections demands more sophisticated applications and advanced systems. In an ever-developing collections landscape within the financial sector, banks need to have a robust collection and recovery system in place to manage delinquent accounts and ensure that loans are repaid on time. Read the full article on our website: https://lnkd.in/ezWwUjw3 #DigitalTransformation

TOMORROW, March 14: Explore the latest Consumer Lending Experience Survey to understand borrower behavior and preferences. Join Jenna Frader, David Vano, Greta Lovenheim, Nicole Nahodil, CMB, and Mark Sandgren as they focus on consumers’ rate and fee sensitivity, customer experience needs, switching drivers, tradeoffs, and behaviors when choosing and interacting with financial institutions. Don’t miss your chance to get valuable insights in this #MBAEducation webinar: https://bit.ly/3PfZopk.

Bank switching refers to the process of moving your accounts from one bank to another. It can be a strategic move to find better interest rates, lower fees, or improved customer service. When considering bank switching, make sure to research and compare different options to find the best fit for your financial needs. Don't be afraid to make the switch if it means better banking benefits for you! Melanie Johnson  Lic #A328858 Notary 2416486 714-715-9291  [email protected] #BankSwitching #FinancialFreedom #BetterBanking #MoneyManagement #SmartChoices