Open Office: June Debrief


(Naji Esiri) #1

Event Synopsis

What can we do to promote and support a responsible approach to lending across the financial services industry? How do we define best practice in this area? From policy to community education, June’s Open Office is an opportunity to discuss the societal and often intensely personal issues surrounding lending and debt management.

Panel speakers on the evening will be -
-@venkat (Lending @ Monzo)
-Craig Simmons (Money Advice Service)
-Liz Barclay (Citizens Advice Camden and Credit Union Foundation)
-Rahul Pakrashi (Funding Circle)
- @joebloom (Money and Mental Health Policy Institute Research Community)

A huge thanks as always to everyone who came along, and our fantastic panel. Please feel free to continue the discussion and share your thoughts on the event in general here!


Community Digest (30/06/17)
(Tom ) #2

Here’s what’s coming up:

What can we do to promote and support a responsible approach to lending across the financial services industry? How do we define best practice in this area? From policy to community education, June’s Open Office is an opportunity to discuss the societal and often intensely personal issues surrounding lending and debt management.

Panel speakers on the evening will be -
-Venkat Srinivasan (Lending @ Monzo)
-Craig Simmons (Money Advice Service)
-Liz Barclay (Citizens Advice Camden and Credit Union Foundation)
-Rahul Pakrashi (Funding Circle)


(Joe Bloom) #3

Thanks for having me as part of the discussion @Naji, @StuartM , and everyone else - it was a pleasure.


(Naji Esiri) #4

A huge thanks to you Joe! It was an honour to have you as part of the discussion and great to meet you!


(David Preston) #5

Thanks @Naji and Monzo for hosting it and to the panel for their insights.

I particularly enjoyed @joebloom’s thoughts on his experience with banks just offering more credit (debt) when times get desperate. I think alot of young people (school leavers, Uni grads, 1st time jobs) aren’t aware of the implications that taking on debt has 5-10 years down the line. It’s almost as if banks pick up on a young person’s first bit of proper income after they start working and take advantage of their naivety when it comes to credit (debt).

Great to see that Monzo is exploring the subject before they even start lending. Another sign of their true intentions.


(Dan) #6

I can definitely relate to this. As someone who got a decent first job from Uni I was inundated with offers of credit cards… something which I, naively, took full advantage of (I certainly lived ‘above my pay grade’).

Gutted that I missed the open office, one of these days I will finally make an event.


(Joe Bloom) #7

Thanks David. I think it’s pretty clear, by the actions that lenders practice, that they absolutely target particular individuals based on certain circumstances where they perhaps should not. They might call this target marketing but when the wellbeing of the individual is at risk then this has to be a completely different ball game and lenders need to be restricted heavily on who they can target.

Credit/debt works great for those with a significant level of cashflow, such as your big city workers; lawyers, bankers, and whatnot but credit/debt is so easily obtainable (you basically just need a regular income, a £ to put on the sheet as your earnings of which you can also just lie about) it makes the “high life” seem all too attainable for those with low to mid income.

I really like what Liz said in the talk that we often talk about “debt” as “credit”, and both have a completely different psychological weight to them, furthering our societal and cultural acceptance of it. Debt should be something those who can afford to have debt should have (significant cashflow), but far too often it’s those who are trying to live above their means who have debt. And our consumeristic world pushes that desire further.

I personally have come to more of the belief that the best credit you can have is hard cold cash. Now that’s literal credit you can make use of.


(David Preston) #8

I agreed 100% about it working well for individuals or businesses that have a significant level of cashflow - it can be very useful for them. It’s just so unfortunate that most lenders target those without that kind of cashflow.

And yep, the word debt needs to be used alot more, especially with young people! “Psychological weight” is a great way to explain that! :weight_lifting_man:


#9

while that was true in the past, now there are a growing number of people using debt not to finance a lifestyle but to pay for basic essential neccessities like food, central heating and water, as evidenced by the growth of foodbanks.


(Tommy Long) #10

Although this is usually short-term debt as the issue is cash-flow, not an overall lack of income


(Alex Sherwood) #11

If anyone’s looking for more information about debt advice, Monzo’s just published some detailed advice & resources here -