Lending Standards Board considers enhancements to take account of technological advancements

The Lending Standards Board (LSB) published a report (dated May 2017) setting out the findings of its Standards Development Project (SDP) on digital.

The SDP included credit card, loan and overdraft products.

In the report, the LSB notes that, in the context of the Standards, the most significant areas of digital development for firms are financial promotions and communications, product sale and account maintenance.

The LSB’s key findings include:

  • Change management frameworks have evolved to become more agile and responsive to changes in the digital landscape, taking a customer-centric approach to testing which puts development teams in direct contact with the end user.
  • Third parties are becoming more prevalent as suppliers of the technology required when providing a fully digital customer experience. Firms need to ensure sufficient controls and checks are in place for oversight of the third parties.
  • The firms that participated in the SDP have introduced various mechanisms to support customers in engaging with the new technologies, understanding the benefits of doing so and accessing information to answer any questions or concerns raised.
  • Increasing numbers of customers are opting to receive their statements digitally.
  • Innovative digital technologies are providing a range of tools to assist vulnerable customers in accessing their accounts and engaging with their lender. Firms have focused on the needs of vulnerable customers by specifically including them when developing new technologies.

Alongside each of the LSB’s findings, the report identifies recommended good practice for firms.