Regulation, disrupted

In December 2021 new mobile and device finance regulations were introduced in the UK. This meant mobile providers had to seperate device finance from the airtime contract. 

Ofcom also set out rules around greater transparency and fairness for the customer. These included the right to be informed before contracts ended and the ability to switch providers with just a text message.

Devices that could require finance include:

  • Mobile phones

  • Laptops and tablets

  • Ear pods such as airpods 

  • Smartwatches

  • Wearable tech  e.g; AI glasses

The premium price for being the first in line means the device cost is often too expensive as a one-off purchase​. Providers have had to adapt to ensure their solutions and platforms meet the new regulatory requirements. 

Market opportunity

The market opportunity

As a result of regulation and market forces, customers may choose to spread the cost of device purchases. Mobile providers now require Loan Management Software (LMS), to ensure device finance is separated from airtime or SIM-only plans, completely transforming the customer experience. 

The legacy challenge

The legacy challenge

The cost to develop, deploy or maintain new or existing Loan Management Systems (LMS) in-house is challenging. Either it's too costly, time-consuming or in-house development teams lack the required capacity or skillset.​


Additionally, some providers have realised that legacy systems are not easy to flex or scale to meet changing requirements.

Woman on laptop looking pensive
The solution

The complete solution

Target and our parent Tech Mahindra have extensive experience in device financing and the wider financial services market. Combined with our FCA regulation and deep domain expertise, we’re perfectly positioned to help you meet regulatory change and customer needs.

Colleagues looking at plans on a table

As part of our Business Process Outsourcing offering (BPO), Target can provide hosted, managed administration service to the end customer. By combining our expert servicing with our proprietary loan administration system, you can respond rapidly to the changing landscape.

The features

  • Managed hosted Loan Management System (LMS)

    Underpinned by Targets deep expertise in consumer lending

  • Scalability and resource

    To support increased account volumes and significant peaks in demand (e.g. new device releases)

  • Highly flexible and adaptable

    To meet regional requirements and to help navigate the FCA and associated regulations in this market

  • Business Process Outsourcing (BPO) operations expertise

    To support overflow or providing a second line specialist loan servicing operation

  • Capility and experience

    To take over full loan servicing administration

  • Adaptive and agile

    Our LMS is highly configurable to meet regulatory demands


Benefits leveraged

Ensure regular cash flow and collection revenues

Achieve economies of scale through outsourcing

Realise benefits of own payment plan without 3rd party commision costs

Outsourcing reduces capital costs and IT run overheads

Solutions ensure regulatory compliance

LMS provides seamless integration with 3rd party systems

Enhanced customer choice and improved customer experience (CX)

Our approach

Our five stage approach


Provide customers with a seamless customer journey for entering into a Device Finance agreement, regardless of channel.  


Deliver a fully integrated customer journey for the ongoing management of Device Finance agreements in a fully compliant manner.


We provide a seamless customer journey for the upgrading of a device, taking into account all Device Financing Scenarios, regardless of channel.

Customer Care

Our team of highly skilled service colleagues manage and resolves customer complaints in accordance with regulatory timeframes

Retention or contract exit

To ensure that all outstanding Device Finance Agreements are fulfilled upon leaving and to maintain highest level of customer experience.

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Ready to transform your device finance?

Get in touch today to find out how!