New research from Sopra Steria shows greater flexibility in the debt management industry is necessary as consumer fears grow over the rising cost of living
LONDON, UK, 14 11 2022 – Sopra Steria, the purpose-led digital transformation expert, today released findings from its report: How creditors can deliver unrivalled customer experience (CX) to consumers in vulnerable situations, highlighting that consumers are demanding increased flexibility when it comes to loan repayments amidst the UK’s turbulent economic landscape.
With rising energy bills, increasing inflation, and trailing wages making the cost of living more expensive, over 1 in 4 (27%) UK respondents said they’d like creditors and banks to take a more flexible approach to debt management, allowing repayments to vary each month depending on affordability and demand.
Most (79%) said they would also value the ability to spread the cost of any missed payments throughout the year, to avoid having to pay out large sums of money in one go. This shift in consumer expectation mirrors that of regulatory authorities, which have similarly called for greater flexibility and visibility within the debt journey, as per the FCA’s introduction of consumer duty.
As consumers continue to feel the pinch, three quarters (76%) have said they would welcome some level of financial support and guidance from banks and building societies, with over a third (38%) stating they have never experienced personalised services from a financial institution.
Alongside this, 59% of individuals who have been in financial difficulty in the last 5 years agreed their bank hadn’t shown them any compassion. These findings prove that financial organisations must begin to personalise their services and use profile and behavioural data to better identify and guide vulnerable customers. Doing so, in a way which is compassionate, will help many customers through this new period of uncertainty they find themselves in.
Craig Wilson, MD of Private Sector for Sopra Steria said:
“As the cost of living continues to spiral, it is no surprise the number of vulnerable or low-income families across the UK is rising, with many turning to personal debt and credit to pay bills. Our report shows just how paramount it is to customers that the institutions which offer them financial support are flexible in their approaches, especially during this time of great turbulence.
“There needs to be a turning point, starting with increased understanding of vulnerability and the improvement of services to enable people to better budget and plan their financial lives. Alongside this, the use of data (with permission) to provide valuable advice and guidance to those in vulnerable positions will be vital to ensuring good outcomes for customers and much needed change within the debt management industry.”
ENDS
Research methodology
Sopra Steria commissioned a survey into the preferences and attitudes of consumers and their debts. This research involved a representative survey of 1,027 UK consumers, reflecting the typical make up of society by gender, age, location and social class.
About Sopra Steria
Sopra Steria, a European Tech leader recognised for its consulting, digital services and software development, helps its clients drive their digital transformation to obtain tangible and sustainable benefits. It provides end-to-end solutions to make large companies and organisations more competitive by combining in-depth knowledge of a wide range of business sectors and innovative technologies with a fully collaborative approach. Sopra Steria places people at the heart of everything it does and is committed to making the most of digital technology to build a positive future for its clients. With 47,000 employees in nearly 30 countries, the Group generated revenue of €4.7 billion in 2021.
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Sopra Steria Group (SOP) is listed on Euronext Paris (Compartment A) - ISIN: FR0000050809
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