A new report by the Money and Pensions Service has highlighted that more than 16 million Brits have missed payments on key household bills this year, and more than two million did so for the first time. This report is illustrative of the pressures Brits are feeling amongst the cost-of-living crisis, with 67% saying the rising costs have affected their household ‘greatly’ or ‘extremely. This also comes as research has found that one in two Brits don’t feel confident in managing their money day to day. In light of this, Rameez Zafar, banking expert and co-founder of Eligible, asserts that banks need to be harnessing AI to detect vulnerable Brits and provide proactive rather than reactive advice.
Research has highlighted that Brits often find it hard to talk about money and take the first step in seeking help. Further to this, research by FSCS has found that amongst UK adults who have financial products, 64% have not sought regulated financial advice in the last five years. In a nation where financial literacy rates are below benchmark, ranking 15 against 29 other countries, this is cause for concern. Research by Allianz has found that more than 25% of all Brits are lacking sufficient skills and knowledge to make sound financial decisions, and this costs households an estimate of £2,850 every year.
Zafar, asserts that as customers are facing tough times, lenders play a crucial role in not only providing tailored support, but doing so in a proactive manner. A significant aspect in making this possible is recent technological breakthroughs, which now allow lenders to discover those in vulnerable positions far sooner thanks to accelerated data processing by AI. Furthermore, by entering the conversation with the relevant personalised information, lenders are better equipped to serve consumers with the appropriate feeling of urgency and sensitivity, striking the ideal balance between automated efficiency and human empathy.
Rameez Zafar, co-founder of Eligible, comments:
“When it comes to AI in banking, it’s all about the application. Generative AI, which essentially outsources language and customer conversations, raises concerns about clarity, transparency, and alignment with values. However, the true power of AI lies in its ability to process vast amounts of data efficiently, making it valuable for enhancing customer experiences. AI has the potential to act as a processing powerhouse, reducing the need for extensive internal data teams and benefiting customers by providing insights and solutions based on data analysis.”
“AI has the power to transform customer support from a reactive relationship to a proactive one. Instead of banks providing support only when the customer asks for it, AI can detect those who are likely to need assistance and proactively engage with them, fostering education and active dialogue.”
About Eligible:
Eligible is the UK’s first AI-driven servicing solution for the mortgage market, integrating award-winning technology with real-time behavioural data to generate tailored financial support for borrowers. Trusted by some of Britain’s leading banks and lenders, Eligible’s technology currently helps to serve over a million consumers across the nation by using AI to analyse customers’ financial and behavioural data and predict how to best support their financial situation. Using this data, consumers are provided with tailored expertise that delivers an unrivalled solution to managing their mortgage while banks can make sure that customers are given the most relevant information when making decisions about financial products and services.
Millions of Brits miss payments on key household bills for the first time
