Credit Shift Webio

Chris Booth, the product owner for NatWest Group's AI assistant Cora, discusses the accessibility work NatWest has been doing and the journey of improving their conversational AI.
NatWest started by building their own front-end chat interface to make Cora more accessible and usable, allowing users to control such aspects as font size and typing speed. They are now also exploring dynamic interfaces and voice for accessibility to create a more fluid and conversational experience.
Chris talks about the challenges of using large language models in customer-facing environments and he further explores the concept of language models and their role in AI systems.
The speakers go on to discuss the use of prompting in language models and the need for tools to control and assure the quality of the prompt and response.
The conversation then looks into the validation and oversight of AI systems and the speakers discuss the limitations and boundaries of LLMs and the potential impact of multimodal inputs.
Takeaways
NatWest has built their own front-end chat interface to make their AI assistant, Cora, more accessible and usable.
Using large language models in customer-facing environments requires careful governance and risk management.
There is potential for creating a trans-organisational repository of conversational content to improve customer experiences.
Personalised experiences are a key focus for NatWest, and they are exploring ways to leverage AI to provide personalised financial guidance.
Version control is a challenge in AI systems and the use of smaller, more focused models can help address this issue.
Understanding the limitations and boundaries of language models is important when building an AI assistant.
Multimodal inputs have the potential to greatly impact the capabilities of language models.
Agencies, startups, and small businesses can focus on fine-tuning and RAG stages to stay competitive in the AI space.
Sound Bites
"We had big ambitions on making Cora far more accessible and usable."
"We're doing really early stages exploring with mobile. How do we create a much more dynamic, flexible interface?"
"We're using it in a lot of ways at the moment. And I think what's so fun and interesting being with Cora and retail is we have by far the highest bar of governance and risk standards."
"Multiple small models or tiny models will actually allow you to control because you can keep them small, you can keep them local and they'll do the job for you."
Chapters
00:00 Introduction to Chris Booth
06:50 The Journey to LLMs
14:53 The Idea of Artificial Sentience
35:19 Understanding the Limitations and Boundaries of Language Models
41:31 The Importance of Continuous Analysis and Fit
For more:
Webio: https://webio.com
Optima Partners: https://optimapartners.co.uk/
NatWest Group: https://www.natwestgroup.com/

This episode covers the stories in the credit industry that caught our eye, including overdrafts, interest charges on personal loans, universal credit, FinTech, buy now pay later, and open finance.
We highlight the high number of people in the UK who are overdrawn and the expensive nature of overdrafts. We also discusses the impact of interest charges on personal loans and the potential benefits of the new universal credit system.
In the FinTech space, the episode explores tap-to-pay solutions, buy now pay later services, and technology innovations in payments. Lastly, it covers the opportunities and benefits of open finance for individuals and small businesses.

Takeaways
Many people in the UK are overdrawn and overdrafts can be an expensive way to borrow.
Interest charges on personal loans can add up significantly, especially for those with lower credit scores.
The new universal credit system in the UK is expected to benefit workers who rent.
FinTech innovations include tap-to-pay solutions and buy now pay later services.
Technology advancements in payments can improve the payment process and help small businesses with late payments.
Open finance has the potential to improve access to finance for individuals and small businesses.

Sound Bites

"One in five people in the UK are overdrawn by an average of £697."
"A lower credit score could add £2,499 worth of interest on a £3,000 loan."
"UK workers who rent are set to be almost £4,000 a year better off with the new universal credit system."

Sources
https://www.credit-connect.co.uk/news/consumer-spend-1-4bn-on-bank-overdraft-interest-each-year/
https://businessplus.ie/tech/payments-uk/
https://uk.finance.yahoo.com/news/universal-credit-change-money-050028301.html
https://cfit.org.uk/wp-content/uploads/2024/02/CFIT-Open-Finance-Blueprint.pdf

In this podcast episode, Paul Sweeney and Cormac O'Neill cover topics such as company defaults, payment terms, transaction fees, and the adoption of AI in the banking sector.
The hosts also explore the concept of Gen AI and its potential impact on various industries. The conversation highlights the importance of trust, ethics, and the human touch in the adoption of AI technologies.

Takeaways

Company defaults and payment terms are key factors in the credit industry.
Visa Card and MasterCard have agreed to cut US transaction fees, which will save merchants billions of dollars.
Gen AI has the potential to augment virtually every job in the banking sector.
Trust, ethics, and the human touch are important considerations in the adoption of AI technologies.

Sound Bites
"For every 1% drop in profitability, it could increase payment terms by seven days."
"Merchants will be able to charge different prices to customers based on which credit card they use."
"LLMs raise the floor, not the ceiling."

Sources
https://www.theguardian.com/business/2024/apr/05/thames-water-parent-tells-creditors-it-has-defaulted-on-debt
https://www.credit-connect.co.uk/drafts/profitability-squeeze-could-extend-business-payment-delays-further/
https://www.irishtimes.com/business/2024/03/26/visa-and-mastercard-agree-30bn-settlement-over-us-transaction-fees/
https://www.credit-connect.co.uk/news/klarna-launches-credit-card-challenge/
https://sytaylor.substack.com/p/generative-ai-word-salads-robinhoods
https://reports.jpmorganchase.com/investor-relations/2023/ar-ceo-letters.htm?
https://www.americanbanker.com/creditunions/list/banking-on-ai-how-financial-institutions-are-deploying-new-tech

In this episode, Paul Sweeney (CSO) and Cormac O'Neill (CEO) discuss recent news stories and trends in the credit industry. They provide updates from their recent attendance at a financial PEVC All Things Funding Summit in London.
The conversation covers topics such as Customer Duty and the need for early warning systems, the closing gap in performance between OpenAI and other models, the growing significance of brand and trust in borrowing decisions, concerns and challenges of Buy Now Pay Later (BNPL) schemes, and the impact of AI on the contact center industry.
Takeaways
The BNPL part of the credit industry is seeing a shift towards the importance of brand and trust in borrowing decisions, alongside interest rates.
Buy Now Pay Later schemes are gaining popularity, especially among younger customers, but there are concerns about their impact on vulnerable groups and the need for regulation.
AI is having an impact on the contact centre industry, reducing the need for new agents and increasing efficiency. However, there is still a need for trained personnel to handle complex cases.
The adoption of AI in the credit industry is a gradual process, but it is expected to have a significant effect in the future.
Chapters
00:00 Introduction and Updates
01:03 Financial PEVC All Things Funding Summit
06:54 OpenAI Gap Closing
10:25 The Significance of Brand and Trust in Borrowing Decisions
12:19 Concerns and Challenges of Buy Now Pay Later
Sources
https://www.credit-connect.co.uk/news/bnpl-three-times-as-popular-as-pay-day-loan-lending/
https://synthedia.substack.com/p/inflection-reveals-a-new-model-rivaling
https://fintech.lenvi.com/consumer-borrowing-report-2024?
https://www.nojitter.com/contact-center-customer-experience/ai%E2%80%99s-impact-contact-center-staffing-%E2%80%93-bittersweet-update

Alison Dunn, CEO of Citizens Advice Gateshead, discusses the structure and scope of Citizens Advice and the challenges they face in managing a wide range of services.
Alison highlights the misconceptions about Citizens Advice being a homogenous group and explains that each local charity within the network is independent and can look and feel different.
Alison also emphasises the importance of out-of-hours support and the barriers people face in seeking help and making contact. She shares insights into the complex issues clients bring, the need for empathy and understanding, and the impact of rising costs on household income, including the poverty premium.
The conversation explores the factors that contribute to higher expenses for individuals living in poverty, such as insurance costs, limited access to affordable credit, and the inability to afford basic necessities. It also highlights the importance of accessible advice and information for low-income individuals and the challenges faced by advice agencies in providing support.
The hosts and guest also look into the impact of debt on mental health and the need for creditors to adopt trauma-informed approaches. Additionally, the role of technology in improving financial services is discussed, with a focus on the potential of AI and automation to enhance customer experiences and support agents.
Takeaways
Out-of-hours support is crucial in providing assistance to individuals who may not be available during traditional working hours.
Barriers to seeking help and making contact include embarrassment, feeling overwhelmed, vulnerability, and having multiple challenges.
Digital channels can serve as a door opener, allowing individuals to engage and eventually transition to more meaningful conversations.
Rising costs, such as mortgage payments and utilities, have led to an increase in middle-income earners seeking assistance from Citizens Advice.
The poverty premium imposes additional costs on low-income households, exacerbating the difficulties of managing on a limited budget. Geographical and demographic factors can lead to higher expenses for individuals living in poverty, including increased insurance costs and limited access to affordable credit.
Low-income individuals often struggle to afford basic necessities and may face additional challenges such as higher transportation costs and limited access to supermarkets.
Accessible advice and information are crucial for individuals facing financial difficulties, and collaboration between creditors and advice agencies can help ensure support is available.
Debt can have a significant impact on mental health, and creditors should adopt trauma-informed approaches to engage with individuals in financial distress.
Technology, including AI and automation, has the potential to improve financial services by enhancing customer experiences and providing personalized support.
Chapters
00:00 Introduction and Overview
00:52 Structure and Scope of Citizens Advice
03:29 Services Offered by Citizens Advice
04:49 Challenges of Managing a Wide Range of Services
05:44 Importance of Out-of-Hours Support
08:01 Barriers to Seeking Help and Making Contact
09:12 Uncovering Multiple Issues and Root Causes
11:46 Digital Channels as a Door Opener
12:53 Protecting Face-to-Face Services
14:11 Middle-Income Earners Seeking Assistance
21:14 Impact of Rising Costs on Household Income
23:39 The Poverty Premium
27:11 Factors Contributing to Higher Expenses
29:07 Cost of Living for Low-Income Individuals
33:37 Importance of Accessible Advice and Information
36:20 Impact of Debt on Mental Health
37:54 Challenges Faced by Advice Agencies
43:28 Role of Technology in Financial Services

In this episode, Webio's Paul Sweeney (CSO) and Cormac O'Neill (CEO) discuss the recent European NPL Conference and highlight three key themes: consolidation in the NPL market, regulation in the industry, and the importance of embracing technology.
Paul and Cormac also cover topics such as consumer credit and debt levels, new legislation on credit card fees in the USA, subscription accidents, and Apple's integration with personal finance apps.
Additionally, they discuss Monzo's recent funding and expansion, as well as the UK government's Debt Fairness Charter.
Takeaways
~ Consolidation is a major trend in the NPL market, driven by the need for scale and efficiency.
~ Regulation continues to be a key focus in the industry, with efforts to harmonise regulations across the EU.
~ Technology is playing a crucial role in the non-performing loan industry, particularly in the areas of loan servicing and origination.
~ Consumer debt levels in the UK have decreased, but there has been a shift from credit card debt to overdue utility bills.
~ New legislation in the USA aims to reduce excessive credit card late fees.
~ Accidental subscriptions are a common issue, and clearer legislation is needed to protect consumers.
~ Apple is making strides in the financial industry with its Finance Kit API and integration with personal finance apps.
~ Monzo, a digital-only bank, has raised significant funding and is expanding to the US.
~ Tech companies like Apple and Monzo are disrupting the financial industry and gaining trust from younger consumers.
~ The UK government has introduced the Debt Fairness Charter to ensure fair treatment of individuals repaying personal debt to government departments.
~ Local authorities and councils face challenges in managing debt and may benefit from innovative solutions.
~ The financial industry is moving towards more integrated, automated, and customer-centric processes.
~ Prompt payment and fairness in refund processes should be emphasized by government bodies.
Chapters
00:00 Introduction and NPL Conference
01:33 Theme 1: Consolidation in the NPL Market
03:27 Theme 3: Embracing Technology
04:09 Webio's Growing Presence in Europe
04:38 Consumer Credit and Debt Levels
05:56 New Legislation on Credit Card Fees in the USA
08:26 Subscription Accidents and Clearer Legislation
14:24 Apple's Finance Kit and Integration with Personal Finance Apps
20:04 Tech Companies Disrupting the Financial Industry
26:59 UK Government's Debt Fairness Charter
32:48 Conclusion
Sources
https://www.theguardian.com/commentisfree/2024/mar/03/consumer-debt-in-uk-down-10-percent-bad-news-utility-bill-arrears-up
https://www.resolutionfoundation.org/publications/in-too-deep/
https://thepaypers.com/online-mobile-banking/cfpb-lowers-credit-card-late-fees-to-usd-8--1267164?
https://www.statista.com/forecasts/1284304/iphone-user-share-in-the-united-kingdom-by-age
https://sytaylor.substack.com/p/the-rise-and-fall-of-fastco
https://assets.publishing.service.gov.uk/media/65eef3e95b6524100bf21aa8/Debt_Fairness_Charter.pdf