Towards financial Wellbeing – Lack of financial resilience is blighting the lives of over 12 M people. Around 61% of UK’s population are tech savvy enough to own a smart phone yet 24M people do not feel confident making decisions about banking products!
Money and Pensions Service (MaPS) wants to see 2 million more people accessing debt advice. But in its UK Financial Capabilities Strategy document it makes it clear that the strategy is not just about creating more advice headroom. A key plank of the strategy is positive client outcome. The vision is to turn people into a nation of savers rather than borrowers.
MaPS is absolutely right that debt advice and delivery should be fundamentally and digitally transformed across all stakeholders, processes and operations. Technology will play a pivotal role in this transformation. Key game changing elements to power better debt advice include open banking API’s, artificial intelligence and big data analytics.
To turn this vision into reality debt advice industry needs new tools that enable them to better understand their clients’ individual needs and the root causes of behaviours that drive people into problem debt. Only then will they be able to advice solutions that will help their clients achieve sustainable financial resilience.