Insights and Inspiration

THOUGHT BOX

BACK
Consumer Debt

Rising Debt Levels and The Future Of Payments Report

Paul Sweeney | Chief Strategy Officer
Credit Shift podcast on Spotify Credit Shift podcast on Apple 
 

In this episode, 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.creditstrategy.co.uk/latest-news/news-top-stories/energy-price-cap-rise-another-blow-to-struggling-households 
https://www.credit-connect.co.uk/news/three-quarters-of-households-struggling-to-pay-off-their-monthly-credit-card-balance/ 
https://www.credit-connect.co.uk/news/third-of-adults-dont-think-bnpl-purchases-can-lead-to-debt/ 
https://www.credit-connect.co.uk/news/autumn-statement-provides-welcome-action-on-late-payments-business-industry-reaction/ 
https://www.pymnts.com/artificial-intelligence-2/2023/intuit-adds-generative-ai-powered-tax-prep-to-turbotax/ 
https://tearsheet.co/banking/postmortem-did-credit-karma-kill-mint-or-was-pfm-already-on-life-support/ 
https://assets.publishing.service.gov.uk/media/6557a1eb046ed400148b9b50/Future_of_Payments_Review_report.pdf 
https://www.pymnts.com/wp-content/uploads/2023/11/PYMNTS-Accounts-Payable-and-Receivable-Trends-Playbook-November-2023.pdf

Everything you need to deliver great customer experiences and business outcomes

Experience the wonder of Conversational AI for Customer Engagement

If you need to improve your customer engagement, talk to us and we'll show you how AI automation via digital messaging apps works.

You will love the Webio experience.

We promise.








 




CONTACT US

DEMO REQUEST

Register for a personalized demo where our team will review how Webio's intelligent customer engagement solutions can positively impact inbound and outbound customer engagement in your business.

METRICS WE’VE ACHIEVED

52%
Uplift in Payment Arrangements
42%
Increase in Agent Productivity
57%
Decrease in Operational Costs
48%
Increase in Customer Engagement

YOUR DETAILS

WhatsApp Contact Button