UK Finance’s latest must–read blogs

How the financial sector could re-join the front lines of the fight against modern slavery?

This Anti-Slavery Day, our best practices in the fight against modern slavery and human trafficking could start to become the new normal.?

A new United Nations (“UN”) report has?claimed?that transferring the world’s 27.6 million forced-labour victims into the formal economy would boost global GDP by US$ 611 billion.??

UK Anti-Slavery Day, recognised on 18 October every year, offers us an opportunity to reflect as an industry on what more we can do to counter modern slavery, and figures like these will provide us with ample food for thought as we do so.??

The figures in context??

The moral case for countering forced labour is well established, but the UN’s latest conclusions could provide a shift in mind-set towards the financial advantages of consigning slavery to history.??

The potential increase in global GDP set out above represents almost triple the?estimated?one-time cost of key interventions required to combat forced labour, which the report sets at US$ 212 billion.??

If international policy-makers are slow to recognise this high-level economic argument, the criminals who perpetuate modern slavery certainly seem to be on top of their own calculations. Annual estimated profits from forced labour, for example,?reached?US$ 236 billion earlier this year.?

Discussions within the financial sector??

If these figures show us anything, it is that the slavery economy is alive and well. Despite clear macro arguments for ending it, the day-to-day profits to be gained from perpetuating it remain significant.?

The sheer volume of illicit profits flowing from modern slavery puts financial institutions firmly on the front line of the private sector’s efforts to counter it.??

Indeed, a recent KPMG roundtable for financial institutions working against modern slavery found that many are already going above and beyond in this regard.??

Read the full blog post from 毕马威（英国） ’s Senior Manager Michael Pollitt and Benjamin Harding-Laleman, Forensic Analyst.

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How technology helps growth and customer excellence in equity release?

As the equity release market returns to growth, lenders continue considering how technology can support business growth while maintaining operational efficiencies and first-class customer service.?

Many lenders have spent time and effort rightly creating USPs around the originations process by taking advantage of the new originations software that has come to market in the last couple of years, or by building out their own capabilities through internal development. In some cases, it is a mix of the two,??

The market is now looking at the latest post-completion servicing software as a further way of driving down operational costs and to ensure the end user experience is as seamless as possible.? ??

A growing market full of potential?

The Q2 later life mortgage lending?figures?from UK Finance showed an 11 per cent increase in new lifetime mortgage advances -?from 5,060 in Q1 to 5,610 in Q2.??

During the same quarter, the Equity Release Council (ERC) reported a 15 per cent rise in the value of equity release lending, which now stands at?￡578 million. ??

This is a great foundation for renewed growth in this important sector.?

What’s more, according to the ERC, recovering house prices in the first half of 2024 have lifted the value of the UK’s property equity to a record-breaking?￡5.7 trillion. Of that number, the ERC estimates that the over 55s hold an average of ￡321,213 worth of equity in their homes and make up more than half (55 per cent) of all homeowners.??

Importantly, there is today more trust in the equity release market than previously, helped mainly by FCA regulation and the ERC’s strict code of conduct.??

As with every growing sector, however, there is always the challenge of managing that growth, while maintaining customer service excellence. ?This is why lenders are now ensuring they review suppliers to ensure their servicing platforms are fit for purpose to accommodate future growth.??

Read the full blog post from Richard Pike, Chief Sales & Marketing Officer, Phoebus Software.?

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Navigating UK payment regulations: How intelligence sharing defends against fraud?

Fraud analysts in banks and financial institutions are like detectives, unravelling the story behind suspicious transactions. But the real twist is that the fraud narrative begins long before the point of transaction.?

As the UK tightens regulations on payment security, those in fraud prevention are in the thick of it. Criminals are more organised than ever, and regulations like the Payment Service Regulations (PSRs) aim to help institutions keep pace with these threats. Yet, the real difference-maker is intelligence sharing, a strategy that every anti-fraud team needs to prioritise.?

It’s not just about compliance?

Regulation like the?Payment Services Directive 2?(PSD2), leave no room for doubt, security isn’t optional anymore. But regulatory compliance is only part of the story. The real challenge for fraud teams is keeping up with the fast-moving world of financial crime, where fraud tactics evolve at lightning speed.?

What used to require advanced technical skills has now become easier. Malware, phishing kits, and even full-blown fraud toolkits are available for purchase on the dark web. The rise of "fraud-as-a-service" means that even those with limited technical know-how can execute complex scams. This shift forces financial institutions to rethink their approach, making collaboration more vital than ever. Sharing intelligence on new threats helps institutions stay ahead of criminals and stop fraud before it spreads. It’s not just about meeting compliance targets, it's about proving that protecting customer transactions is a top priority.?

Fraudster’s new playbook?

Regulations like PSRs push the need for stronger security measures, but there’s more at stake than just following the rules. Fraudsters today are masters of manipulation, using tactics that range from phishing emails to fake apps disguised as harmless games or security updates. Their real weapon is?social engineering, convincing people to hand over sensitive information willingly.?

For fraud detection teams, intelligence sharing is key. By sharing insights across institutions, fraud analysts can spot patterns quicker and take action sooner. When one institution detects a new scam, like zero-day malware, passing that information on enables others to safeguard themselves before the fraud spreads any further.?

Read the full blog post from Ian Newns, Regional Sales Director, Cleafy.