Credit Management May 2022

NEWS ROUNDUP
CICM 2022 British Credit
Awards break all records
THIS year’s British Credit Awards (BCAs),
hosted by the Chartered Institute of
Credit Management (CICM), was the
biggest on record with the highest
number of ticket sales and entries of any
previous CICM awards ceremony.
The 2022 ceremony was the first in
person for three years and was also
the first time the institute achieved
a complete sell-out, with almost 500
members and their guests in the
audience. Profit generated through the
success will be re-invested in delivering
more training courses and further
membership opportunities throughout
the remainder of the year.
Sue Chapple FCICM, Chief Executive
of the CICM said the event was a heartwarming
reminder of how supportive
the industry can be of its members and
colleagues: “With it being our first event
back in person, we expected attendance
numbers to be high, but to break records
Consumers in danger of
increasing loan shark attack
MAINSTREAM lenders are surrendering
people into the hands of illegal loan
sharks as many victims try to access
credit from legal, regulated sources but
the vast majority see their applications
rejected, leaving them nowhere to turn
except predatory illegal lenders.
Analysis of the CSJ’s dataset of 1,200
confirmed victims of illegal lending in
its Swimming with Sharks report by
Freedom Finance (a supporter of the
CSJs Debt Policy Unit) demonstrates
shortcomings of the lending industry,
with 38 percent of loan shark victims
stating that they had attempted to secure
credit elsewhere. However, four in five (80
percent) of these were rejected.
Further analysis of FCA data reveals
many people are also deterred from
applying for credit altogether - more
than one in 10 people with at least
one consumer credit product decided
against applying for a loan in the past
year because they were afraid of being
rejected, a proportion that rises far higher
was something we never expected.
“It reminds me just how important
collaboration and support are within
our industry, and on the night, to see
members congratulating their colleagues
and championing individuals was
heart-warming. It was a special night
and a special reminder of how incredible
our members are. We can’t wait for
next year’s event already…once we’ve
recovered from this one!”
The record number of tickets sales
was aided by the equally record-breaking
number of categories, entrants and
category sponsors with all awards
being sponsored by 15 of the Institute’s
corporate partners. The awards saw the
creation of three new award categories
bringing it to a total of 18, which
subsequently received almost 150 entries.
The dramatic increase in applications for
tickets meant the institute had to create
its first ever ticket waiting list.
among those with characteristics of
vulnerability (eg, 42 percent among those
with low financial resilience). Of those
deterred from making an application,
nearly half (48 percent) said they felt
there was no point.
Brian Brodie, Chief Executive of
Freedom Finance and CSJ Debt Policy
Advisory Board member, said it was a
wake-up call for the lending industry
to increase support for potentially
vulnerable borrowers: “This is an
industry problem as much as a social
problem as a large number of the victims
are already customers of our industry
who were not able to get the support
they need. “The withdrawal of many
alternative, short-term providers of
credit pulled up the ladder above what
the regulator might term “high-risk”
borrowers. This is now being filled by
illegal money lenders as
lenders wash their hands of
a responsibility to provide
fair access to credit for all.”
>NEWS
IN BRIEF
Praise for UK’s
‘robust’ Anti-Money
Laundering systems
JOHN Glen, Economic Secretary to
the Treasury, has praised the UK’s
robust Anti-Money Laundering
(AML) approach and pledged that the
Government will not compromise on
its high standards.
Addressing delegates in his
keynote speech at the Innovate
Finance Global Summit during
FinTech Week 2022, the minister
gave a wide-ranging speech
covering issues such as growth in
the UK’s FinTech sector, regulation,
management of crypto assets and
tackling the challenges posed by
money laundering.
Mr Glen praised the innovation
and resolve of the sector, stating that
year-on-year investment growth in
UK FinTech was up more than 200
percent in 2021. He also re-affirmed
the Government’s commitment to
embracing cryptocurrencies: “If
crypto-technologies are going to be a
big part of the future, then we – the
UK – want to be in, and in on the
ground floor. In fact, if we commit
now – if we act now – we can lead
the way.”
On regulation, he added: “The FCA
has already expanded and reinforced
its world-leading Regulatory
Sandbox, it’s piloting the new
‘scalebox’, which offers enhanced
support to newly authorised firms
and just a few weeks ago, Innovate
Finance announced the launch of
their International FinTech Group,
which they will co-chair with the
Department for International Trade.
“We’re setting direction for how
the UK can build on its successes so
far, notably through a new regulatory
oversight committee that will work
with industry to agree and implement
the vision for the future of open
banking in the UK.”
Wayne Johnson, CEO and cofounder,
Encompass Corporation,
says he is encouraged by the
Government’s apparent commitment:
“The UK’s FinTech sector has
so much potential, but, in an
increasingly uncertain world, having
the ability to investigate and ratify
sources of wealth and income is
critical. With the right regulatory
tools and technology in place,
organisations will be able to continue
growing, without the fear of failing to
adhere to increasingly complex and
strict requirements when it comes to
AML and Know Your Customer (KYC)."
Brave | Curious | Resilient / www.cicm.com / May 2022 / PAGE 7