News Update: Debt by the Numbers, The Digital Divide and Poverty Premium

Credit Shift

This podcast episode features Paul Sweeney (CSO) and Cormac O'Neill (CEO) highlighting industry news and focusing on the financial struggles of different consumer groups. Key points include:

Renters vs Homeowners: A significant gap in financial stability, with renters more likely to miss essential payments.

Energy Debt: A notable rise in prepay energy customers' debt, highlighting the challenges faced by energy providers and consumers alike.

Apple Wallet Changes: Discussion on EU regulations impacting Apple, potentially opening up iPhone NFC chips for other payment services and app sideloading. This could disrupt Apple's financial data collection and affect credit and payment companies.

Klarna's Evolution: Klarna's transition from a BNPL service to resembling a traditional credit card company, introducing subscription models like Klarna Plus.

Credit Industry Data: Detailed statistics on UK consumer debt, highlighting the vastness of the credit industry and various interest rates.

Social Inclusion and Digital Divide: Data on UK adults without bank accounts and limited internet access, emphasising the challenges in digital finance inclusion.

Poverty Premium: The additional costs low-income households face, including cash payment fees and prepayment meters.

Citizens Advice Bureaus: Increased enquiries about debts, indicating rising financial challenges among the public.

The podcast concludes with a preview of the next episode focusing on the human factors in business management.

Sources

• https://www.credit-connect.co.uk/news/one-in-six-renters-have-missed-an-essential-payment/
• https://www.credit-connect.co.uk/news/pre-payment-meter-debt-rises-to-1-billion/
• https://themoneycharity.org.uk/media/January-2024-Money-Statistics.pdf
• https://www.theverge.com/2024/1/19/24043965/apple-iphone-nfc-payments-open-up-third-party-developers-european-union-antitrust