MorganAsh comments on BoE Money and Credit data

30 August 2023

MorganAsh has developed the MorganAsh Resilience System (MARS) to help brokers, advisers and financial services firms better manage and evaluate consumer vulnerability and comply with Consumer Duty.

Andrew Gething, managing director of MorganAsh said: “While mortgage rates have shown signs of improvement recently, today’s figures and a slight decrease in mortgage approvals show that it is still a complex environment for would-be borrowers. That’s especially true as the actual interest rate paid by mortgage borrowers continues to increase. A slight rise in remortgaging is certainly not a surprise, although some may have expected a greater rise in the current climate.

“While net borrowing of consumer credit may have decreased, this highlights the tougher borrowing conditions rather than a change of behaviour, with credit card borrowing remaining consistent. As a result, financial wellbeing and vulnerability remains a key consideration for firms across financial services. It must not be the only consideration however, especially with Consumer Duty now in force and a broader range of vulnerability to be considered and monitored by all firms.

“Firms must not forget the real difficulty many consumers will be facing, and the clear need for systems to identify those customers with vulnerable characteristics and generate good data for firms to take appropriate action.”