April 2020
By Adrian Bloomfield, Director, NCI Resources
It is simply unprecedented how many times a day, these days, I hear someone say in the course of a TV interview ‘it is simply unprecedented’ in respect of some aspect of the virus. We all know it is true. In a lifetime of business activity, I have never seen anything like the phenomenal challenge we all face. The numbers are almost beyond belief and the whole global struggle is more like fiction than fact. And yet we see examples of extraordinary human sacrifice and kindness and heroic effort by health workers from the NHS and care homes, and an enormous number of front-line workers around the world.
When it comes to business in the UK we have (to use our favourite word again) unprecedented decisions of sacrifice and support led by the Government and reinforced by individual firms. We are so fortunate to be in the UK where we have co-ordinated national action to ,’stay open’ as much as possible. Millions of workers are on furlough and must stay at home. There are guidelines and rules to prevent transmission to keep free space in hospital for the most serious cases.
The catastrophe and havoc of the virus knows no boundaries and does not discriminate, and the damage to medical and health issues is (to use our favourite word again) unprecedented. The world was not ready for the pandemic and there are global shortages of equipment, beds, and health workers.
We must and we will come through the clinical matters, and then we will all need to take stock and add up what has been the cost and who and how can we pay for it.
It is so daunting to think how we can re-build the economy of the world, and what changes there will be. The world will change and business activities will adapt to the new circumstances. Government would like to have businesses preserved and be ready to spring back into action even if so many are mothballed.
We are bound to see huge changes in patterns of behaviour. Will we travel as much, will we be ‘going to work’ or work from home? Even education will look at technology to tutor children at home by video links.
The best news for those who will have to organise these things is to be able to turn to innovative firms and those that one way or another stayed ‘open for business’ or at least remained ready to bounce back quickly to revive the economy. We need commerce. We must return to a world where people buy and sell things, and firms and industries borrow money and banks and finance houses lend. It is essential businesses make profit and people earn their livelihood so we can afford to pay tax and enable the treasury to refill its coffers.
At NCI, we are continuing to service the needs of our Clients using latest technologies and innovation. Advances in telecoms and IT means our administration team can work just as effectively from home to support the Government’s message in staying home, protecting the NHS and saving lives. We have continued with field activities only where there is negligible risk to our Field Agents and the people they come in to contact with. Where a personal visit is not possible or advisable, we have developed strategies to conduct due diligence interviews by video call and thereby, continuing to give our Clients the benefit of an independent report and verification of the Applicants, the loan, the source of deposit and exit strategy. These strategies now include the ability to conduct interim and exit meetings by video call to hopefully give the Lender comfort that the proposed exit remains on track.
However, if you really understand the purpose of regulation, then surely it is something that should be welcomed into an industry where vast sums of monies are transacted every day and lives and society are changed for the better, and sometimes for the worse. It does not take long to review the “deal done” announcements via online magazines and social media platforms to get a feel of the size and mobility of an expanding industry. And while associations such as FIBA do a great job in educating and raising standards, would it not be a good thing to have an industry-wide regulatory benchmark?
Regulation is a process consisting of the making, application, and adjudication of rules governing human behaviour and human social interaction. Whether they are traditional or modern, societies and industries need regulation if they want to survive and prosper. More specifically, it matters who regulates what, when, how and why on the basis of what title, at what costs, and with what consequences.
The current financial regulator, the FCA, state quite clearly that they are focussed on the outcomes for consumers, and that those who work in financial services must embrace the principals of responsibility and accountability, as well as the process. From a specialist lenders’ point of view, we are always trying to achieve a positive outcome for our clients, so that the borrower will recommend and re-use our services. Acting at all times in an accountable and responsible way we believe is a minimum standard when it comes to treating customers fairly and achieving our business objectives.
Discussing this topic with friends of mine who are directly authorised, regulated financial advisors, their view on regulation was not one of “big brother”, but of the benefits to the customer that advice and process across the board was pretty much standardised. Regulation to them also meant that each customer facing company had similar structures, similar processes and roles and responsibility. Each company had different products and providers, but the customer journey was relatively the same and therefore best practice can be widespread. This gave a sense of professionalism, accountability and high standards within the financial services industry.
Myself personally, having worked in regulated roles previously, I understand concerns that some may have on regulation creep. However, now I am very proud to work in the commercial finance sector. I believe that as an industry we provide a fantastic service to clients, giving them access to a wide range of funding options, getting deals over the line to provide new housing, new commercial units and services to the general public. Without the speed and innovation our sector provides, growth would be seriously stunted. So if increased regulation brings with it an increased pride in what we do, greater professionalism and accountability while standardising the customer journey to provide the best outcomes, I am all for it.