• EU’s Mario Draghi identifies over-regulation in EU as a major contributor, resulting in reduced economic performance compared to the the US
• The new Labour Government plans to kick-start the economy, and plans to establish an efficient, proportionate and predictable forward-looking regulatory regime, aligning with the Financial Conduct Authority's (FCA) and Prudential Regulation Authority's (PRA) secondary objectives of competitiveness and growth
• AFC research identifies high levels of concern among UK and EU lenders about progressively higher levels of intervention, compliance risk and costs as regulators seek to drive better outcomes for people (customers, employees etc) and the planet

Two part session

First: interviews with Isak Bengtzboe, chief policy adviser and legal adviser at Eurofinas; and Stephen Haddrill, director general of the FLA respectively. What is driving the increased intervention in financial services in the EU and UK; what do Isak and Stephen believe the industry, policy makers and trade associations can do to regulate better; and how can the industry manage the increasing levels of intervention which it is facing.

Second: Our panel of the auto and equipment finance industries “great and good” will discuss their observations.

Viewpoint: John Rees and Murad Baig from FIS, talks to Richard O’Donohue, former Dell Financial Services about how he believes lenders can deliver superb customer experiences using the right mix of in-person and automation.

• Do lenders really need expensive in-person customer service? If so, what explains the explosive growth in lending by unsecured-lending digital-only platforms?
• What are the key ingredients in a great customer journey and how should lenders balance in-person and automated processes?
• How will emerging tech like generative AI change the rules of customer engagement?
  

First session:

Uptake of BEVs is slowing with low levels of consumer uptake and slowing transition among business users is changing the route planned by many OEMs. AFC asks whether there is a need to slow down the pace of regulatory driven change in favour of developing a more compelling proposition for car-buyers

1. Consultation on the timetable for ban on sale of new ICE cars/ hybrids as bridge to electric
2. Implications of the Z mandate on sale of new ICE cars
3. The shift in OEM plans away from BEV
4. Decision by UK not to block chinese imports

Second session:

How should firms provide reasonable evidence in their fair value assessments

In September the FCA announced that firms must provide reasonable and proportionate evidence in their fair value assessments. AFC asks Wayne Gibbard, Partner Shoosmiths what that means; provides an example of the work done by Propel Finance in conjunction with Investors in Customers to track customer satisfaction as a step beyond enforcing service level agreements; and considers what more lenders need to do ensure regulator satisfaction.

Industry and trade associations meet to consider how the industry can encourage best practice; communicate its values to its key stakeholders; and delineate the roles of FLA and NACFB

Stephen Haddrill, director general of the FLA; Jim Higginbotham, director general in waiting of the NACFB; Norman Chambers, director general of the NACFB; Managing Director of Close Brothers Asset Finance and Leasing and head of the broker working group at the FLA work together in an important workshop for brokers and asset finance lenders to identify industry action points to tackle industry issues.

Session one will include 5 minute viewpoints from UK lenders, hybrid lenders, and brokers.

Session two is a workshop where industry participants will debate what actions industry participants can take to build a better industry that serves its customers better.

This is the first of a three step programme managed by AFC in association with the NACFB. Follow-on sessions will include a webcast in 2025 to report on the workshop findings; and a follow-up at the NACFB expo to report on progress.

Forget the hype - here are three finalists in our latest innovator series that we believe deliver genuine industry solutions using AI. Have we found real-life, ready-to-go, use cases for AI that you can use today in your businesses. Tell us what you think!

Fintechs will pitch their solutions; our tech judges will ask the difficult questions and you can vote on the solution you believe is best of the three.

Dragons

• Steve Taplin, MD Asset Finance, Lendscape 
• Catriona Powell, head of data insight and innovation, Novuna Business Finance
• Andrew Trimmer, head of tech, Simply

Finalists

• Max Chmyshuk, founder, thisisjuno.ai 
• Richard Huston, Co-Founder & MD at VAMOS  
• Paul Chong, COO, Ophelos 
  

New participants contributing their transactions to Lumia’s fraud detection data lake are adding increasing value for lenders who rely on this service to identify critical industry exposure to fraud, AfC gets a progress report from Acquis Lumia and asks whether now is the time for the FLA to finish the job by mandating data disclosure.

“This house believes that the auto and equipment finance industry needs clarity on UK AI regulation in order to properly leverage its value”

Compare and contrast the differing approaches to manage risk from emerging AI.

The EU has provided a framework for considering AI risk which classifies activities as unacceptable, high, limited, and minimal risk. Each class has different regulation and requirements for developing or using AI systems. This helps businesses consider how best to deploy AI without falling foul of future law and regulation but it can be difficult to practically apply the classifications to proposed use cases; it may drive activity towards low reward, low risk use cases rather than focussing on high value use cases where risk may be reduced [is this true?]; and it creates an uneven playing field disadvantaging EU firms over non-regulated competitors from outside the region.

The US by contrast seems to be following a different path - providing innovators with the freedoms they need to innovate; and waiting to deal with problems as they emerge. There may be dangers in this for consumers who might well end up paying the price for this early freedom. Regulatory uncertainty may also prove a greater brake on innovation than bad regulation.

The UK approach, outlined in a white paper in 2023, suggests a likely path somewhere between the two, lighter touch than the EU and sector-specific regulation. Use of AI is encouraged for financial services especially in areas like fraud. The FCA is likely to have regulatory oversight. Emma Erskine-Fox (speaking for the motion) and Ben Cooper (speaking against) together part of TLT’s future law team will present the evidence. Judge Jason presiding. A majority decision from delegates will determine the outcome.