As presented by Richard Carter from Nostrum Group at the 2014 annual Consumer Credit Trade Association conference in October 2014.

2. THE TECHNOLOGIST’S VIEW ON RISK

3. www.nostrumgroup.com @nostrumgroup
• Consumer Attitudes to Digital Finance 2014
• ‘The Emergence of the Digital Borrower’
• 2002 consumers surveyed
• 991 men, 1001 women
• Balanced UK representation
NOSTRUM’S RESEARCH

4. www.nostrumgroup.com @nostrumgroup
• 70% of people are worried about data security
(down from 75% in 2013)
• Only 65% amongst those who borrowed in the last 12 months
• Flexibility, transparency, and fast responses across a range of
communication channels are what consumers are looking for
• The positive components of payday lending – technology and
immediacy – will increasingly be harnessed in other forms of
lending
Source: Nostrum Consumer Attitudes to Digital Finance research 2013 & 2014
CONSUMER
CONFIDENCE IS RISING

5. www.nostrumgroup.com @nostrumgroup
EDUCATION & TRUST • Consumers still prefer to resolve issues via offline channels
• The challenge for online lenders is to minimise these instances
• Providing a seamless online process is key - online lenders
should be looking to create an experience that requires minimal
customer data
• Our research found that borrowers aged 36-45 are more
confident transacting their finances online than those
aged 18-35
• Providers also need to ensure websites provide the consumer
with enough information to fully understand their products
and services
Source: Nostrum Consumer Attitudes to Digital Finance research 2013 & 2014

6. www.nostrumgroup.com @nostrumgroup
CONSUMER MEDIA USE
HABITS MUST BE
ACCOUNTED FOR
• 83% of adults now go online at any time, using any type of
device, in any location.
• Nearly all 16-35 year olds are online (98%)
• Use in over 65s has increased with 42% now going online at
any time, versus 33% in 2012
• Tablet adoption trebled to 17% between 2012 and 2013
• 33% of mobile users now say they buy things via their phone
(vs. 23% in 2012)
• 34% use their phone to check their bank balance
(vs. 25% in 2012)
• 56% of people who buy things online say they often read
user reviews
Sources: Nostrum Consumer Attitudes to Digital Finance research 2013 & 2014
Ofcom Adults’ Media Use & Attitudes Report – April 2014

7. www.nostrumgroup.com @nostrumgroup
TRANSPARENCY IS
PARAMOUNT
• Behind interest rates, transparency of information is the most
important consideration to consumers looking to borrow
• 80% of respondents to our research cited this as important
• The views of women and older borrowers were stronger than
average
• Transparency slightly less important to those who borrowed in
the last 12 months (74%) – so perhaps experience is better
than perception?
• More than half of internet users (54%) think that people who
buy things online put their privacy at risk
• 86% internet users say they give only the minimum amount of
personal information required online, but 42% say that they are
happy to provide personal information online to companies as
long as they get what they want in return
Sources: Nostrum Consumer Attitudes to Digital Finance research 2013 & 2014
Ofcom Adults’ Media Use & Attitudes Report – April 2014

8. www.nostrumgroup.com @nostrumgroup
THE FUTURE IS SOCIAL
AND MOBILE
• Lenders will increasingly use social data to assist their
underwriting decisions
• 60% of consumers we surveyed said they would prefer lenders
not to do this
• In August the FCA issued guidance and announced a period of
consultation on the subject of social media, the first time it has
done so since 2010
• We expect social data in underwriting and affordability
assessment to become a focus of the regulator
• Smartphone ownership is reaching saturation, tablets usage is
growing exponentially, desktop PC use is declining as a % of
total use
Sources: Nostrum Consumer Attitudes to Digital Finance research 2013 & 2014
Ofcom Adults’ Media Use & Attitudes Report – April 2014

9. www.nostrumgroup.com @nostrumgroup
LET’S MAKE LENDING, CHEAPER, FASTER AND SAFER
putting the customer in control of their finances, any place, any time and on any device.
The challenge is to ensure you satisfy your customer base.

10. FOR OUR FULL REPORT ON CONSUMER ATTITUDES
TO DIGITAL FINANCE VISIT OUR WEBSITE:
WWW.NOSTRUMGROUP.COM