Tony Walker’s Post

80% of customers with thin credit files may be denied loans when in fact they are low-risk customers, according to a review by Credit Connect. This issue highlights the importance of moving beyond simplistic credit file reviews towards more comprehensive underwriting processes. Armalytix suggests real-time methods can provide accurate client information for better affordability assessments, reducing the reliance on historical credit data. A study in Manchester found that 22% of the population had insufficient credit scores, indicating a significant need for alternatives to traditional credit score evaluations. The pilot study emphasizes the large number of individuals being excluded from affordable credit lines, presenting a missed opportunity for both borrowers and lenders. Addressing this issue can unlock potential for financial inclusion and growth. Read more about this insightful analysis by Credit Connect here: https://lnkd.in/ed2qs4xb #CreditProfiles #FinancialInclusion #CreditScores #Underwriting #AffordabilityAssessment

My son pointed out the ability to use a well-known BNPL provider for a deliveroo delivery, which perhaps I shouldn't have been surprised by and whilst the access to credit can be seen as a valuable service the ease of increasing the debt burden is perhaps less welcomed; and the financial education of the implications is less well taught! As per the following article https://lnkd.in/e_M6v8-g It is the youngest that are most likely to fall into debt with a loan shark (13% of under 35's report they have borrowed from an illegal lender). I'm not saying that BNPL is driving this alone and the cost of living to improve their financial situation is a larger factor, but as per the below the potential escalation of debt is driving people to take out loans with illegal lenders due to the lack of available and affordable credit options. https://lnkd.in/e3diAeM2

Obligatory travel shot - well I commute into London most days so not a "new" journey. But the Elizabeth line to Excel - that is a winner - top tip.... So Accountex 2024 - enormous amount to see and catch-up with clients and vendors. Like everyone else I'll be dropping by Ask the Accountant podium and hope to see the Client Engager team. Most talked about seems vendor pre-event - seems to be Apron, rapid delivery of products, creating quite a name for themselves.

So based on my post yesterday: https://lnkd.in/dkcCs5Hx I was wrong, it's not the location I thought. So now two questions where was the photo yesterday and evidence and this is the one I thought it was - guesses as to where it is (clues provided)! Rachel Booth over to you...

At the Royal College of General Practioners - why I hear you ask. Insolvency Practioners Association Annual Conference. The tower of pfizer vials was an interesting feature. Looking forward to the trends predictions and priorities section for 2024 with Dean Beale and Paul Bannister, and some Professional Etiquette with David Holland amongst other distinguished speakers. Look out for the stand and come and say hello. Big thank you to the team at Restore Records Management and Marios Frangoullides - you know why!

Interesting read from Credit Connect - well it interested me! Feels to me that once again the lack of financial knowledge (highlighted here for 18-34 year olds) but generally is such a common theme. Whilst the BNPL, unregulated, market is often interest free the penalties for missed payments, which seems obvious to this author, are not widely understood and with 63% of 18-34 year olds using the service are able to repay but with issues there is certainly the potential future dated problem brewing. The simple and ubiquitous access to these products does make it feel "safe" and normalised - and I'm not suggesting they shouldn't exist, but the cynical question should always be "what's in it for them?" If you don't know where they make money you've probably missed something - that may or may not be important (sharing data is often the money making element for the firm and this may or may not concern you). In this case the thing that has been missed is the penalty. Whilst knowing how everything works and it's true value is an aim (FCA's consumer duty is looking to tackle that) but as an individual knowing what's in it for the firm providing the service seems the obvious start point. Trying to educate my children and not bringing too much cynicism: -think how they make money is my point and -if it looks too good to be true..... https://lnkd.in/edVTrDxt The focus on the article is to bring BNPL within the regulatory landscape and certainly the comments "There is a huge knowledge gap when it comes to BNPL – this is driven by lenders who continue to offer a lack of transparency, confusing repayment terms and hidden costs. BNPL lenders need to step up and take responsibility for tackling the misconceptions that still exist about the risks of using these products" is a challenge to address - but a dose of cynicism helps.

Been a little remiss on the conference posting front! Looking forward to meeting up in London with the Insolvency Practitioners Association (IPA) members on 25th April. We will have a stand at the event, so look out for the logo - Armalytix. Hoping to have lots of great questions from current and potential clients!

In town this morning. Birmingham for the Festival of Accounting & Bookkeeping, nice stop for a coffee before the full on event. Looking forward to meeting up with Ask the Accountant, the team from LimeBooks Limited and new Xero partner friends (Ben Lockwood, Kadie Walker-White) Lots to take in - do stop me and say hi if you see the Armalytix epic logo...

Great coverage, important messaging that we are part of a solution with our “Innovate, Educate, Protect”. As per the comments there has been a heightened press coverage around the issue of head trauma.  Any rugby coaches or parents interested in finding out more should join one of the VC’s (link in comments) that cover all aspects.