• Government support ending and cash flow pressure will prove catalyst for market growth
• Leveraging ‘new data sources’ will be key in fight against fraud
• Greater competition will prompt lenders to invest in tech driven solutions to improve the customer experience.

FCI member, EQ Riskfactor, a global provider of risk management software for the commercial finance market (part of Equiniti Group), has launched its new international report, Navigating 2022 And Beyond.

The new report interviewed senior professionals from the receivables finance industry across the UK, US, Germany, France and the Netherlands on what lies ahead for receivables finance lenders in 2022. It was good news. The view across international borders did not waiver – receivables finance lenders are feeling positive and optimistic about the year ahead.

Driven by government support schemes coming to an end and increasing demand for finance, expert consensus states there is a vast opportunity for lenders to attract new customers. These would have previously been cash secure and not considered receivables finance as a working capital solution.

Despite the opportunities some challenges remain. Operating throughout a pandemic, navigating the various lockdowns and restrictions, dealing with new variants and an increased risk of fraud and business failure will all need robust strategies. The operating environment remains fluid and the successful lenders will be those that embrace the uncertainty and remain responsive and agile to quickly changing conditions.

Increased competition is also expected to be a factor within receivables finance. To meet the challenge, lenders will seek to invest in technologies which help speed up and optimise processes both for themselves and their customers.

To support enhanced risk monitoring, lenders expect to use far more extensive and diverse sources of data in 2022 to make better informed decisions. Through comprehensive data sets, lenders can gain greater insights and flag potential risk at the time of onboarding and throughout the client lifecycle – all while ensuring the client gets the right product and funding in the right way.

In 2022, having the right quality risk metrics, auditing tools, KYC processes and monitoring triggers within a remote environment will be essential to assess risk, prevent fraud and grow portfolios.

Mark Watkins, Director at EQ Riskfactor, commented: “It is reassuring to hear in our report that lenders are feeling confident and optimistic about the year ahead. There are definitely many positives in the market, yet despite this, lenders will still need to overcome challenges. Those that employ technology to help them respond to fast changing conditions will be best placed to overcome uncertainty and gain competitive advantage. Data and technology together will improve speed of decision making and ongoing risk monitoring, benefitting the overall customer experience both through onboarding and ‘in-life’ relationship with the lender.”

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Click here to download the full report.

About FCI Member, EQ Riskfactor

EQ Riskfactor’s established risk management technology uses automation to identify potential frauds using advanced analytics which highlight unusual activity, so that lenders can investigate and reduce risk.