At the beginning of November, we were privileged to bring together industry leaders from across the UK receivables finance space to discuss the future of the industry over the next decade.
While many seasoned members of the receivables finance industry may expect discussions to have turned to:
- new ways to combat fraud risk,
- how the industry can harness technology and AI, and
- the continued hope (as a global industry) that we may, finally, reach a common industry language.
You wouldn’t be wrong in your assumptions, each of these topics were discussed and debated. However, the main takeaway from the session was this:
As an industry, we get tied up in the few and not the many - and it needs to change if we’re going to drive significant growth.
This is how the conversation went…
Shifting the narrative
The UK receivables finance sector is at a point where leaders want to move beyond fears about fraud and risk, and shape a future focused on positive impact, client experience, and broader relevance of the product.
This is not to say that appropriate management of fraud and fraud risk are not vital ingredients of a successful, modern receivables finance operation. Instead, the point here is that focusing on it too much is holding the sector back from focusing on growth and customer-centric innovation – the challenge that leaders really do spend their day-to-day thinking about.
The consensus during the forum was that to do this, the industry needs to shift the conversation away from being “all-consumed” by the small percentage of fraudulent actors.
The Receivables Finance product
The future needs to be about ensuring the right product is in front of the right business, at the right time and in the right way, so its value is obvious and transformative – every time. Invoice Finance is fantastic in terms of how it can help businesses thrive – too few businesses are aware of the proposition and the value it can bring.
James Sykes, Head of Invoice Finance Product – Lloyds Banking Group
We know the product inside and out and we know it works well, but clients… just see reasons we won’t fund, and jargon they don’t understand.
John Morton, UK Head of Commercial Risk – Bibby Financial Services
Therefore, the emphasis must be on visibility and relevance. It’s on banks and finance providers to ensure that businesses see receivables finance as an option at the point it matters most, in a way that makes sense to them, and through accessible, jargon-free communication.
Modernising the customer experience is a must
The group agreed that to get there modernising the client journey is the next frontier.
The collective realisation was that proactive, intuitive, and client-focused solutions will unlock market growth, spanning everything from:
- streamlined onboarding,
- user-friendly digital tools, and
- self-serve options.
A place where technology can be embraced not just for efficiency gains and risk reduction, but to make a genuine difference to the customer experience.
Harnessing data and technology wisely
Leaders recognised that data and technology offer huge potential, but that ‘tinkering around the edges’ isn’t enough at this point.
As John Oliver, Head of Product and Propositions Global Trade and Receivables Finance – HSBC Plc. stated:
To double the size [of the market], you have to look at variants and bigger shifts.
The adoption of AI, desktop reviews, and dynamic credit scoring were all discussed during the session, with a clear-eyed view that vital human checks and relationship touchpoints must remain.
AI transforms auditing from hindsight to foresight - empowering invoice discounting with precision, speed, and trust. By spotting anomalies early, even before disbursement, it streamlines checks and maintains a transparent audit trail, ensuring risk stays controlled and confidence scales.
Stuart Saunders - Head of Sales Finance Specialist Risk Unit – Barclays Corporate Banking
Additionally, the data opportunity spans not only smarter risk management but also greater insight into client needs, and more effective communication to help businesses see how different inputs of capital can result in different levels of growth.
With greater data access, the industry also has an opportunity to share more stories of positive customer outcomes, to further promote the attractiveness of the product:
[The industry has] better stories to tell, but also opportunities to pool data across sectors to tell these stories. This is something we’re actively investigating as the industry’s trade association.
Matthew Davies, Director of Commercial Finance – UK Finance
The power to change is in our hands
Perhaps the most energising conclusion was a sense of ownership. Industry leaders no longer need to dream of an alternative reality, but instead recognise their ability to drive change now.
John Oliver asserted:
The founding fathers of the industry have all long retired, so we all need to step up to the plate to drive change – it’s no longer ‘how are they going to do it?’ and now ‘how are we going to do it’.
That requires collectively raising ambitions, making the sector more attractive for new talent, and telling better success stories.
We’re not good at shouting about our success stories and where we’ve supported when others wouldn’t. We’ve moved away from that lender of last resort. People are buying into that message, but we’re not shouting about it.
Steve Ive, Risk Director – Leumi ABL
In a sector where the product genuinely helps businesses thrive, there is an urgent need and undeniable opportunity to focus on growth, revolutionising the client experience, and pro-actively driving the relevance of the product.
Our focus at Lenvi is clear: work hand-in-hand with industry leaders to future-proof the sector and empower growth. The industry’s leaders have the power and motivation to do it, so now is the moment to step forward, and make some moves.
Find out more about Lenvi Riskfactor's invoice finance software.
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