Outsourcing rules are contained in Chapter 14 of the PRA Rule Book. In short, where an important operational function is outsourced, additional controls should be in place to manage that service. In most cases where a credit union is relying on cloud-based services – outsourcing rules apply. As … Read More about Supporting compliance for outsourcing rules
Covid-19 means falling credit scores. A holistic view is needed
Covid-19 will increase bad debt. Covid-19 means falling credit scores. Spending 1/5 of monthly income on credit is already tight. But losing 20% of a salary (assuming employers pass this cut on), means debts will be harder to repay. And the self-employed are faring worse. Currently they can … Read More about Covid-19 means falling credit scores. A holistic view is needed
Why Traditional Financial Statements Don’t Work
Money comes in. Money goes out. Calculating disposable income is hard given our tendency to spend what we earn. The Office of National Statistics has found 3 in 10 households break even at best. In many of these cases there's a budget deficit. Citizens Advice report that 5m British adults have … Read More about Why Traditional Financial Statements Don’t Work
How Being Nice can Skew Risk Appetite
We’re nice people in the credit union movement. We often ‘err’ on the side of accepting loans, especially where borrowing will really help members out of a tricky situation. This can knock our risk appetite out of line with expectations. In such circumstances bad debt costs run over budget. … Read More about How Being Nice can Skew Risk Appetite
Satsuma Goes Pear-Shaped (Slick Customer Experience Isn’t Enough)
Ten years ago I ran a focus group of low income borrowers to understand the impact the Government’s Growth Fund initiative had on credit union members. What suprised me was how much borrowers were willing to pay for convenience of service. I’d assumed that lower interest rates and weekly payments … Read More about Satsuma Goes Pear-Shaped (Slick Customer Experience Isn’t Enough)