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The way UK consumers borrow and manage repayments is undergoing a fundamental transformation. To remain competitive and compliant, lenders must understand and adapt to the significant shifts in borrower behaviour.

This new report, developed by payments specialist Acquired.com and featuring contributions from Flexys, provides a data-driven look at the key trends shaping the future of lending payments and collections strategy.

What you'll learn from the report

Based on proprietary research with active UK borrowers, the report uncovers four essential takeaways for lenders:

• Missed payments are often about liquidity, not hardship. A failed payment doesn't always signal financial distress. Research shows 64% of near-prime and 61% of sub-prime customers have funds available in another account when a loan payment declines.
• Borrowers are juggling multiple lenders. The modern borrower actively manages multiple credit relationships, with 75% of near-prime and 70% of sub-prime borrowers using two or more lenders concurrently. They expect seamless, low-friction repayment options from all of them.
• Stated preference doesn't always equal performance. A borrower's preferred payment method isn't always the one with the highest success rate. For instance, while widely preferred, Direct Debit has limitations like rigid timelines and delayed failure visibility that can be unsuitable for borrowers with variable income.‍
• Digital wallets are a major untapped opportunity. Digital wallets can significantly improve repayment success and streamline onboarding , yet many in the industry are unaware of their capabilities for recurring payments.

Flexys: A partner in building modern repayment journeys

As a key contributor to the report, our CEO, James Hill, highlights the importance of adapting to this new reality:

This research reflects what we see every day: borrowers are managing multiple credit commitments and want fast, simple repayment journeys... At Flexys, we help lenders adapt to this new reality. Our software gives borrowers self-service access to manage their accounts in real time... Working with Acquired.com helps us take this even further. Their support for modern, secure payment methods like Pay by Bank and digital wallets gives borrowers more choice and control.

This report is essential reading for any lending professional looking to enhance collections performance, lower operational costs, and align with the FCA's Consumer Duty.