Global information and insights company TransUnion recently hosted its UK Future Summit 2023. The event brought together leading companies from finance, banking, fintech, insurance and other sectors to discuss the importance of credit inclusion and credit education as well as supporting financially vulnerable consumers and enhancing customer experiences.
Dominic Goslett, executive director at TransUnion in the UK, says: “This year’s TransUnion Future Summit welcomed many clients and industry leaders, and drove a lot of thought-provoking conversations around tackling vulnerabilities and reshaping consumer finance through empowerment and education. We at TransUnion are using the power of robust data to address emerging financial challenges and lead the charge for a financial landscape that’s transparent, inclusive and built on trust.”
TransUnion hosted an array of open discussions and panel debates on the most pressing topics in the current financial market. Key takeaways from the day included:
Knowing your customer and identifying consumer vulnerabilities is key
The session on ‘Deciphering Consumer Vulnerability’ delved into how the industry aims to offer consumers expanded financial choices – exploring the idea that better understanding customers and identifying vulnerabilities is the cornerstone of building a robust and fair financial system.
According to the FCA’s Financial Lives Survey, 47% of the population have at least one characteristic of vulnerability. Therefore, utilising behavioural signals and vulnerability models to categorise customers becomes essential in helping providers make the right decisions, protect customers and prevent financial harm.
Credit education strengthens consumer trust and engagement
Particularly relevant as consumers face the cost of living crisis, the masterclass ‘Leveraging Credit Education to Strengthen Customer Loyalty, Trust & Engagement’ highlighted the importance of financial awareness in enhancing consumer trust and improving financial wellbeing.
TransUnion’s recent Consumer Pulse showed that 75% of those who frequently monitor their credit report feel more in control of their financial health. This means that credit education must remain a focus for finance providers, helping to empower consumers and give them a greater understanding of credit information and how it’s used.
Enhanced consumer experiences require advanced risk assessment
TransUnion’s Consumer Pulse survey found that of those targeted by fraud, over one in 10 (11%) said they had been affected by identity theft.i While businesses strive to detect potential fraud, they also need to ensure it is as simple as possible for their customers to transact with confidence.
So, as pointed out during the panel discussion ‘A Modern Identity Crisis: How The Digital Age Blurs The Lines Between Trust, Risk and Authenticity’, being able to provide enhanced consumer experiences demands a delicate balancing act. This includes leveraging fraud analytics and cutting-edge device and behavioural insights as well as the latest technology advancements in document verification to help stop fraud in real time while limiting the friction in the user experience for genuine customers.
Understanding Generation Z credit consumers is paramount for future growth
Gen Z represents a growing proportion of the UK’s credit eligible population that is looking to open new credit at a higher rate than other generations. TransUnion’s Consumer Pulse study found that 44% of Gen Z individuals are planning to open new credit or refinance existing lines within the next year – well above the Millennials in second at 33%.
The session ‘Understanding Generation Z Credit Consumers’ emphasised that taking an educational approach will be essential to building trust among Gen Z consumers. To effectively engage with them, lenders should prioritise technologically advanced credit and affordability assessments that ensure streamlined user experiences, whilst also focusing on raising awareness of the various credit options and encouraging good credit habits.
