Category: Lending

Top 5 reasons to outsource your Lender of Record

When market opportunities arise, they won’t be open for long. Change is accelerating, and lenders need to be ready to move quickly to be able to take advantage of the market. Here I outline the top 5 reasons that lenders should outsource their Lender of Record (LOR).

The changing world of collections and recoveries

The Covid-19 pandemic has undoubtedly had a significant impact on customer arrears. We’re seeing many changes in the demographics of customers in arrears and the typical arrears lifecycle, including the increasing complexity, longer recovery periods and more vulnerability.

Target Group promises to transform mortgage market with new platform

Target Group is launching a fully digitalised mortgage platform to transform the mortgage application process. Launched this month, The Mortgage Hub will speed up the ‘outdated and cumbersome’ mortgage application process and increase accuracy.

Debt Prevention: Customer Service Tips to Help Stop Borrowers Falling into Arrears

We take a look at some key steps that lenders can take to avoid customers falling into arrears.

The Sheer Scale of the BBLS Challenge in Numbers

As lenders get ready for repayment of BBLS loans from May 2021, take a look at the sheer scale of the BBLS challenge.

The 3 Rs of Open Banking for BBLS

At the time the scheme was launched and the first loans were issued, no one could have predicted the path of the novel coronavirus, and its impact on the UK and the world. The result? 1.3m loans have been issued, with a total value of over £40bn at an average of £30,000 per loan. But what happens next?

A Pivotal Moment for Business Lenders

Within the next 3-5 years, we will see a revolution in lending. A series of small changes will eventually cause large systematic change, but Covid-19 has accelerated the need for digital transformation. It’s important to invest now to be prepared for the digital future.

Humanising Debt Collection: How to Support Customers in Difficult Circumstances

The debt collection process can be difficult, stressful and time-consuming for both the debtor and the lender. Due to the ongoing coronavirus crisis, there are more loss-making accounts than ever, and the pressure is on lenders to provide debt collection methods and techniques that are effective and compassionate.

The True Scale of Rising Household Debt in the UK Due to Covid-19

Some may argue that the ongoing Covid-19 pandemic is as much an economic crisis as a public health issue, but what is the reality of UK debt due to coronavirus?

UK Consumer Debt: At a glance

Lenders are facing a tsunami of challenges off the back of the Covid-19 pandemic. The impact on consumer debt in the UK is huge and long-lasting. As we head towards the end of the furlough scheme, and with payment holidays finishing soon, lenders will need to be prepared for what comes next.

5 things lenders need to know about Generation Z and their approach to finance

Beth Collins, Solutions Lead at Target Group, examines what matters most to Generation Z when looking for financial products and providers.

New challenges facing financial services in 2020 and beyond

Katie Pender, Senior Solutions Lead, takes a closer look at new key challenges facing financial services in 2020 and beyond.

Looking over the horizon of payment holidays and forbearance

We take a look at how businesses can adjust to the short and mid-term demand increase for servicing collections and arrears.

How can lenders successfully and responsibly deploy TFSME funds

Geraint Chamberlain, Head of Platform Solutions at Target Group, looks at the government’s new Term Funding Scheme.

Target Group hires mortgage expert Katie Pender to drive disruption in mortgage market CX

Target Group, the financial services outsourcing and software provider, has today announced the appointment of Katie Pender as its new Senior Solutions Lead.

Can technology make consumer spending more ‘responsible’?

Charities are increasing their pressure on the finance industry to do more to protect its customers from their own spending. With Barclays introducing ways for its debit cards to be ‘switched off’ to certain types of spending, will we see such features extend further into all retail finance?

Target Group Comments: FCA publishes findings on long-term mortgage arrears

Terry Baxter, Director of Risk and Compliance at Target Group, said: “The FCA’s findings on how mortgage lenders treat customers who have long-term arrears is a timely and important study."

Millennials, loans and the digital-first conundrum

In lenders' boardrooms up and down the country there is a dawning realisation that to stay relevant they will have to increasingly appeal to a younger, more digitally-savvy demographic.

June CEO Blog

Once again politics has taken centre stage after the snap election threw up some intriguing results. The political train even stopped by Target’s offices in Newport in May as we welcomed the Foreign Secretary Boris Johnson.

Does the digital revolution pose a threat to vulnerable customers?

Digital processes are now increasingly commonplace in the lending industry. Numerous challenger organisations have launched in the past decade, each looking to disrupt the market and steal a significant share from established firms.

What can the All Blacks teach us about regulation?

For the past decade, the All-blacks have undoubtedly been the dominant force in world rugby and arguably in world sport. Whilst watching them recently, I was struck by how they continually seem to a step or two ahead of the pack.

January CEO Blog

Following the announcement of our acquisition by Tech Mahindra, this year is already shaping up to be an exciting one for us as we look forward to the next stage in our growth.

CML monthly lending figures

All indications are that lending has bounced back this month after a dip in July and August. Fears that the market may be cooling over the longer term post the referendum seem unfounded as first time buyer activity in particular is increasing, which is encouraging.

What is the Future of Lending?

As Co-Group CEO at Target Group I’m often fortunate enough to have a front row seat to witness genuine innovation in financial services. Recently there have been some changes in the lending market in particular that seem to portent exciting times ahead.

Ian and Bill’s monthly review – October

As the dust continues to settle following Brexit, the economic landscape is at least becoming a little clearer. The Bank of England has acted by cutting the base interest rate, to a new historic low of 0.25%.

Brexit: What now for lenders?

The result of the EU Referendum unleashed a wave of uncertainty as central banks, investors, spenders, savers and borrowers alike watched on to see how the result hit the economy.

Ian and Bill’s monthly review – July

The past month has seen momentous events unfold in Britain and for its European partners. Although the UK has undoubtedly entered a new era, negotiations may well not start for some time and political uncertainty is likely to dominate the country’s agenda for the foreseeable future.

Lending into Retirement

The confluence of an ageing UK population, house price inflation and new pension freedoms all point to the importance of finding solutions to the question of how our industry best lends into retirement.

Smarter, stronger, faster – how do lenders gain a competitive edge in a crowded market place?

The lending market looks to have entered another cycle over the past few years.

Ian and Bill’s monthly review – May

We’re delighted to kick of this edition with the fantastic news that we were named as ‘Best Credit Services Provider’ at the recent 2016 Credit Today awards.

Ian and Bill’s monthly market review

It has been a busy month in the financial services sector as ‘Brexit’ fever grips not just the industry, but the entire country.

Disaggregation: the springboard for lending innovation

Immediately after the global financial crisis our industry experienced a period of existential threat. The good news is – we still exist!

Interview with Mike Newman as Hartmoor launch their first products to market

We caught up with Mike Newman, Director of Structured Products at Target Group, to understand a little more about the launch and the opportunities he sees in the marketplace

Our Top Tips for Peer to Peer lenders when choosing a standby servicer

In a rapidly changing market giving your customers and shareholders peace of mind that you have a back up plan in place should the worst happen is essential.

An interview with Paul Smee, Director General, CML

Clearly there’s been a lot of change in this market, particularly in the tax treatment of Buy to Let landlords. The sector must be feeling a little groggy from the amount of change that it has had to plan for, particularly with amendments to the stamp duty and the landlords tax allowance

Banking Beyond Borders

Introduced by National news presenter Natasha Kaplinsky, the video looks at developments in the banking industry and showcases how we help financial services businesses operate within a changing landscape.

An Interview with our Co-Group CEOs Bill and Ian

We catch up with our Co-Group CEO's Bill and Ian

A challenging route to market for challenger banks

Since the financial crisis the banking industry has undergone a number of changes.

Interview with Tony Ward, CEO Clayton Euro Risk

We catch up with Tony Ward, CEO Clayton Euro Risk

Equity Release: current success and future challenges

The Equity Release industry has been one of the real success stories of the mortgage market over the past few years. We broke the billion barrier in 2013, set a new record of £1.4 billion in total lending last year and 2015 looks set to be yet another record-breaking 12 months.

Data Analytics – how to ensure a positive impact on your business

Large organisations will generally generate significant quantities of raw data and information on a daily basis – this data can be a real asset to the business and when utilised properly it will support more informed decisions throughout a business; optimising or creating processes/systems, methodologies and opportunities.

Interview with Bharat Sagar

We catch up with Bharat Sagar

Why is UK lending the place to be?

As talk in the media generally tends to focus on first-time buyers and London house prices, it’s easy to forget about the non-prime mortgage industry.

Mortgage Finance Gazette Lunch Club sponsored by Target “Innovation and choice in the non-prime mortgage market”

There is a demand for specialist lending but there is also a need for innovation in the various part of the market that the’ non-prime’ label covers.

Question and Answer with Geraint Thomas, Partner, Eversheds

We catch up with Geraint Thomas, Partner at Eversheds.

Innovation in the non prime mortgage market

As talk in the media generally tends to focus on first-time buyers and London house prices, it’s easy to forget about the non-prime mortgage industry. It may appear to outsiders that the market has faded away, but non-standard customers are as important as ever – even if the market looks different from the past.

Building a Data Analytics capability

Developing a robust data analytics capability within a business, requires a number of important steps that need to be undertaken before embarking on any development programme. There are a couple of key points you must consider when starting this journey.

Paul Smee, Director General, Council of Mortgage Lenders Interview

We catch up with Paul Smee, Director General of Council of Mortgage Lenders

Are you prepared for the technology revolution?

With Halifax said to be trialling the use of heartbeat monitors to determine a customer’s identity, technology in the financial sector appears to be advancing more quickly than ever. The bank has revealed plans to use special wristbands to check the heartbeat of its customers – something which is completely unique to each individual - before allowing them to access their online banking facilities.

Big Decisions

Business likes its buzz words and one of the most often quoted in recent times has been the term ‘Big Data.’ Definitions of ‘Big Data’ vary but one simple and widely held view is that it refers to the massive volumes of both structured and unstructured data that can be mined to reveal patterns or trends around customer behavior and your interaction with them.

Question and Answer with Richard Thompson, Partner Portfolio Advisory Group at PwC

We catch up with Richard Thompson, Partner Portfolio Advisory Group at PwC.

Asset Rich or Cash Poor. Is Equity Release what you are looking for?

2014 was the best year ever recorded for Equity Release lending. £1.4bn was loaned into the market and the number of new customers also reached its highest level for 6 years.

The inexorable rise of the new lender and TPMA

So we have recovered. It seems that most commentators believe that the UK economy is back on a safer footing (despite some notable risks and potential headwinds) and as the wider economic environment continues to improve the UK mortgage market is, broadly speaking, on the up. 2014 saw regulatory issues dominate.

Data Analytics

Whether they realise it or not most large organisations are awash with valuable data. More often than not, there is a mountain of information tucked away in a number of departments, in varying states of accessibility, accuracy and formats.

The Regulatory Year Ahead

2014 was an eventful year for Financial Services! The introduction of the Mortgage Market Review (MMR), as well as the implementation of the Consumer Sourcebook kept everyone busy and 2015 looks like it will be more of the same.

What will the mortgage market look like in 2015?

We have seen some significant changes in the mortgage market over the last year, the most substantial being the implementation of the Mortgage Market Review (MMR) in April. Undoubtedly one of the most extensive pieces of legislation the sector has witnessed in the last decade.

Insightful research into borrowers spending habits

We recently partnered with YouGov to conduct a research survey of 2000 consumers looking into the borrowers spending habits in the wake of the Mortgage Market Review.

A change is gonna come…

Received wisdom within financial services is that consumers of financial products don’t like change. Inertia is often cited as a major issue across a diverse range of financial products. Whether it is bank accounts or remortgage rates, it does seem that people often need to be reminded or cajoled into securing a better deal for themselves and, even then, they can be reluctant to act. So why is that the case?

What does the future hold for new entrants to the UK mortgage market?

The UK economy is emerging from the financial instability that has characterised the past few years. The mortgage market is moving back to growth, with the Council of Mortgage Lenders predicting that volumes will rise further during 2014, potentially reaching £200billion.

The EU Mortgage Credit Directive: An uncertain future for Buy to Let?

The announcement last month of plans to regulate buy-to-let (BTL) lending as part of the EU Mortgage Credit Directive has left many in the mortgage world scratching their heads.

Scottish independence – can we cope with more change?

Whatever views one might have about political and economic ramifications, it is clear that most of the industry would not welcome the huge amount of work required to unpick a financial union that has been in place since 1707. In the mortgage market in particular concerns have been raised about how mortgages could be denominated and regulated were the union to be dissolved.

New beginnings and new entrants

As the UK economy emerges from the financial instability that has tainted the past few years, the mortgage market is showing strong recovery signs. The market is finally settling down after a few years of turbulence, consumer and lender confidence is returning with a flourish.

Outsourcing supports good lending

Over the past seven years, the financial services industry has experienced significant change and upheaval. Despite this, one constant has remained; the use of outsourcing. So with all the transformation and turmoil, why is it that lenders still favour outsourcing?

The importance of arrears strategy in the post MMR world

With the introduction of the Mortgage Market Review (MMR) last month, the main challenge for lenders has been how to comply with regulation effectively whilst still delivering excellent customer service and retaining their competitive advantage.

Standby Servicing shouldn’t be left out in the cold

Since the financial crisis, standby servicing has played an increasingly important role in reassuring investors. As a result, lenders who have not ring fenced their back office functions have felt the heat to have a robust standby servicing provision in place.