News Update: Webio's Conversational AI Success and Big Moves in the Financial Industry

Credit Shift

This week's news update is hosted by Paul Sweeney and features Webio CEO Cormac O'Neill returns to delve into a range of intriguing topics, news stories, events, reports and trends shaping the credit industry today.

The episode kicks off with a focus on the General Credit Industry News in the UK. Paul and Cormac share encouraging developments in the economic landscape, particularly regarding inflation. They unveil data from the British Retail Consortium (BRC), revealing a substantial decline in food price inflation, dropping to its lowest point since August 2022. Shop price inflation and non-food inflation also follow suit, showing signs of improvement. However, the housing market tells a different story, with house prices experiencing a year-on-year drop and affordability challenges for first-time homebuyers.

Moving on to the BNPL (Buy Now, Pay Later) landscape, the hosts discuss the prevalence of credit usage among UK adults and the potential financial pitfalls of not clearing credit card balances. They highlight initiatives by HSBC UK and Nova Credit, which aim to assist immigrants in building credit history by offering credit cards that leverage international credit histories.

Wagestream's acquisition of Keebo sparks interest as they look to offer credit-building tools to millions of UK residents who lack credit histories. Meanwhile, SAP Fioneer and Mastercard's collaboration in the B2B embedded payments sector indicates rapid innovation and a focus on inclusion and efficiency in the financial sector, with the integration of AI platforms playing a pivotal role.

The podcast's third section explores two interconnected research findings. The hosts delve into the Harvard Business Review's insights on AI in customer interactions, emphasizing the importance of the human touch in loan approval processes. They also discuss the significance of conversational interaction in enhancing customer satisfaction. The hosts point out that AI can streamline processes but should complement the human element, particularly in products or services with identity or symbolic value.

In the final section, the hosts highlight the transition in fintech towards an AI-driven "Sophistication Era." They discuss consumer expectations for advanced services and the transformative impact of AI, particularly in reducing the cost of service. Webio's own experience demonstrates impressive results using Conversational AI.

The episode concludes by shedding light on major moves in the industry, including Visa's venture into Generative AI and Mastercard's partnership with SAP Fioneer in the B2B payments sector. The hosts stress the importance of identifying core competencies and leveraging partnerships to expand into new markets while minimizing risk.

Sources:

https://www.creditstrategy.co.uk/latest-news/food-price-inflation-at-its-lowest-level-since-august-2022

https://www.creditstrategy.co.uk/latest-news/cost-of-a-house-dropped-by-53-in-september

https://www.credit-connect.co.uk/news/poor-credit-scores-cost-up-to-272000-more-over-a-lifetime/

https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.19986.html

https://hbr.org/2023/09/how-ai-affects-our-sense-of-self

https://lsvp.com/the-sophistication-era-of-consumer-fintech/

https://thepaypers.com/online-mobile-banking/sap-fioneer-partners-with-mastercard--1264305

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