Flexys powers credit union collections as bank partnership model takes shape
CEO James Hill quoted in The Banker on the "strength-in-numbers strategy" emerging across the UK credit union sector
The FCA has been clear that Consumer Duty requires lenders to deliver good outcomes, not just avoid bad ones. For customers who need small amounts of affordable credit and don't fit mainstream lending criteria, that distinction matters more than most lenders currently acknowledge.
A new article in The Banker examines proposed reforms to the UK credit union sector, and what they could mean for banks looking to close that gap. If common bond rules expand as planned, credit unions could serve up to 10 million members each, making them a far more credible referral partner for lenders managing financially stretched customers.
Flexys CEO James Hill is quoted in the piece on the technology side of this shift. Three Scottish credit unions, Scotwest, Capital Credit Union, and Glasgow Credit Union, have joined forces to share resources and technology. Two of them, Scotwest and Capital Credit Union, have already gone live with Flexys collections software. As James puts it, a "strength-in-numbers strategy" is emerging, as credit unions collaborate to access technology that was previously out of reach for institutions operating alone.
The article makes a compelling case that the infrastructure for meaningful bank-credit union collaboration is closer than many assume. For lenders asking how Consumer Duty changes their obligations when a customer isn't a right fit for their products, it's worth reading in full.
