Times are a changing

News this week has of course been dominated by the Queen, sadly passing away, now succeeded by King Charles.

My first thoughts were, of course with the family, it is no doubt a difficult time for them.
My second thought was how to avoid the full force of the blizzard of news seemingly on every TV channel, newspaper, radio interview, and all across social media… in the UK it has been relentless.

For some, this coverage has been overwhelming, for others, perhaps reminding them of their own experiences of loss, difficult, whilst those remaining simply a poignant marker of a key point in history… it is though without doubt change and a change of an era.

For me, times like this also bring into stark contrast that, no matter who we are, our time on earth is limited and the wind of change is constant.

This is a fact I often find easier to avoid than confront. Sticking my head in the sand, and creating a routine that allows everything to appear unchanging is in fact incredibly comforting… until it changes, when it then can leave us even more unprepared.

And, if we look at the world around us over the last few years, change is afoot. Even looking at the week before all this happened it was the case.. a focus on the cost of energy, its economic impact and announcement of government support… potentially huge changes and impacts for many.

We may be distracted for now, but this change has still not gone away… and it is one we need to stay prepared for too… it will return.

So as the next 7-10 days roll by it is worth observing events closely, thinking what can we learn, maybe reflecting on the Queen’s life and the organization of final arrangements…

  • Playing a clear role with dedication… working towards a higher purpose
  • Making the most of the time we have… to get things done
  • Thinking ahead for future transition and change… having a plan
  • Practicing and preparing… making the plan happen

Certainly using this event as inspiration, sounds better than canceling everything just to watch it all unfold on TV…

… and having a solid plan, with actions, will hopefully leave us better prepared to handle the wind of change that is sure to return… and return again it will… too soon most likely.

My motto for the week… “don’t think like an Emu”…

Have a good week everyone…

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Back to school

This weekend is a key milestone for many of us… yes next week (in many places at least) it’s the Labour day weekend and the following week back to school.

It’s a sure sign of the end of summer, quieter days at the home office and for those without school aged kids, the start of cheaper airfares!

In hot water

Of course, this also means earlier sunsets and with the weather cooling the sinking prospect that I will at some point have to put the heating on.

Just this prospect of ‘putting the heating’ on seems to have put me, and what appears to be most of northern europe into a flat panic this week.

Running through the data on my own smart meter the electricity bill has already doubled and from the price cap communication last week it sounds like it may almost double again – all of this is before increased winter usage too.

We have talked of fuel poverty previously. It is gradually expanding to a larger and larger segment of society.

Yes, we can try to find ways to save energy, but the price is undoubtedly escalating faster than many can cut usage… a £4-5K energy bill is just unmanageable for most folks.

Also my business

But, what really concerned me were the viral images of electricity bills on twitter & here. We have all had our attention focused on consumer prices, but poor old businesses, who are not subject to the price cap, had already seen the dramatic rises in energy costs.

Cafes, stores with refrigeration, and delivery supply chains, let alone those with industrial use are already hurting. Some businesses have been closing with immediate effect.

Passing costs onto the customer will be inflationary (£12 for a cup of coffee anyone), and closing the business means loss of income for any (ex)employees… all adding to our affordability woes… the reality of what we could be really facing is starting to set in.

Hierarchy of needs and payment

It all feels like the problem is gradually moving up the hierarchy of needs and with food to eat being pretty much at the top there may not be much left for those down the payment hierarchy – and yes this includes us in the consumer finance industry…!

So, a couple of immediate thoughts about what to do.

  • Have a plan and a playbook, support measures, and forbearance plans at the ready
  • Embed flexibility into process design. This was a big learning from the pandemic remember, anything can change and change can happen fast
  • Find scaleable and digital ways to handle increased volumes. Volumes could easily double, get ready now
  • Support your employees.. they may need warmth, food and importantly a job… stay in business by running a good business
  • Use data to tailor customer support and journeys. Remember to look beyond what the data says about today to forecast about the future, combine data across time, look at trends to make more powerful predictions and remember it is always what the data says but sometimes what it does not say that is important… try to identify gaps in what you know as this is where surprises can come from
  • Lastly, try to do the right things for customers… once all of this is over brand loyalty is a fantastic asset… and if you don’t do this proactively, the regulator will force you to do it anyway (Consumer duty – remember first deadline is October!)

Of course we hope that there will be some support from the government… although hope strikes me as more of an excuse to do nothing rather than any meaningful strategy and we do really need a strategy.

This will all be a large part of the topics for conversation at the Credit Connect Lending Technology think tank event next week… it should be a good and timely conversation for sure.

It is after all a conversation that needs to be had with some urgency… and, after admittedly a somewhat lazy, but great summer, now is the time to prepare.

So apologies somewhat for the downbeat tone this week… To cheer myself up I am off to the shop and pub to help them stay in business I think…

Have a great weekend everyone… do sign up for the session next week 🙂

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Not working…

Last week I was in Albania of all places. It was a good trip with dramatic mountains, wide beaches, and good food.

It did also, of course, also prompt a few other thoughts and observations.

Why do we work?

It is of course easy, no longer caught up in the rat race, to dream of staying on your holiday a bit longer… not returning to the office, selling up, and moving out to some exotic location to run a beach bar in flip flops and shades every day. Who hasn’t considered this and admittedly there does seem to be some collective madness in our current work pattern… work really hard, just to be able to save up, to go on holiday to not work for a couple of weeks.

Would doing something you enjoy, working a little less hard maybe, be more effective (mathematically speaking).  Ie working on something that you don’t need a break from…?

Now before I go and break out the hessian shirt, backpack, and travel pants from my 20s, there are of course other reasons to work hard and work hard at things that at first sight may not seem easy.

  • Learning new skills, for one – if we don’t stretch ourselves, it can be hard to master anything new, taking the easy path is great in the short term, long term it is easy to feel stuck.
  • Meeting new people – working together to achieve something beyond what you can do individually, build relationships, and expands your network, all of which can lead to new opportunities for all (a bit of adversity helps too, there is greater satisfaction in completing something hard than easy)
  • Passing on skills and knowledge to others – This I suspect depends on where you are in your career, however, helping others develop their skills and passing on knowledge has a certain sense of satisfaction – it is a legacy of sorts I suppose 😊

It is just always good to have a bit of perspective, something which can be difficult in the thick of it at work.  La Dolce Vita still beckons, although maybe I am just not quite ready for it just yet!

Are mobile phones helping or hindering society?

Looking at my fellow travellers, the one thing that struck me was just how much we are all enthralled by our mobile phones. At the airport, in the restaurant, by the pool, on the beach, everyone was living their lives through the devices in their pocket… as an example the security at the airport, took a break and came in for coffee at the café I was in.  They each sat in silence looking at their phones, rather than chatting with each other.

It seems we are increasingly inhabiting cyberspace, our default community is online rather than the people around us. Geographic boundaries seem to be constantly eroding, no matter where I am I can carry on as normal (the language barrier, maybe being one of the last borders to go – although even this is eroding). 

It is all something I could have done back at home in close proximity to cups of tea and chocolate biscuits.

There are of course advantages to this hyper-connectivity. Communicating with family back home, ordering that shopping for your return whilst on the beach, even making sure you have your boarding pass ready, but we are missing the world around us.   It does increasingly look like addictive type behaviour, not allowing us time to think, interact or be present with the world around us.

Admittedly I can be just as bad as everyone else, but it is something to think about and make some change, now I am back (after I have finished wordle of course!) – I may even read a book.

The allure of cheap

Modern low-cost airline travel can be frustrating, I mean we all like the headline rates for flights, only to discover that my the time you have added on luggage, priority boarding, and printing your boarding pass (because electronic ones are now taken at the airport), the cost of the flight has doubled, being close to the major airline you avoided booking with (and this before car parking, which can cost as much as the initial flight sometimes).

I suppose if you know the system and can work the process, there are some good deals out there.   For the rest of us, it leaves a bad experience.

In some ways, this is no different from the experience say of buying a car.  The base model looks cheap/reasonable but does not have any of the finishes or luxuries you really want – you end up paying more.  Or with software, the base price is good, but the features you need, require an extra fee.  Just like hotels, should pricing be room only, half board, full board, or all-inclusive!?

The big drawback with all-inclusive pricing is, despite giving certainty, customers may be tempted to think we can save money by looking at alternative providers with a lower headline cost (even though in reality it may be more).  

… you are ruled out of the running before the race has even started.

We should of course be focused on value.  This is something that is much harder to determine, and a bit of expert support and prior experience can go a long way to help.. with the multitude of choices this is not an easy challenge.

Rather than looking for value, our psychology it seems is dominated by cheap.

Just look at my low-cost airline experience – I dislike it, I grumble, I complain, I will say never again, but the siren song of cheap is strong and I know I will be flying with them again.

Have a good week everyone.

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