The Australian-listed company Humm Group Limited (humm) has become the latest credit provider to receive approval as an authorised provider of consumer credit by the Financial Conduct Authority (FCA).
The approval is set to enable the alternative credit provider to launch its full range of products within the UK market, adding to its already 2.7 million-strong customer body in Australia, New Zealand and Ireland.
Humm’s UK customers will now have access to loans of up to £30,000 over a maximum of a six-year period, positioning the lender as an online alternative to high street personal loans, credit cards with high-interest rates, or unregulated BNPL products with low credit limits.
“The current credit market offers limited choices for retailers looking to offer payment flexibility to their customers, with high-interest loans and short-term unregulated credit the first port of call for many looking to make big life purchases,” comments PJ Byrne, CEO of humm.
This news comes nine months after the lender first reported that it had its sights set on the UK’s £575billon retail market.
In that time, humm has established two products in the UK market, being ‘pay in five’ and ‘pay in twelve’. Both require the first payment at the point of purchase, and all purchases must go through stringent credit and affordability checks.
“The credit market needs to be brought into the 21st Century, evolving to meet consumer and retailers’ needs whilst ensuring high levels of customer protection,” continues Byrne.
Following its regulatory approval, humm’s latest UK product will churn up competition in the present consumer credit market, providing flexible credit options for UK retailers to offer their customers, whilst improving the breadth of products consumers have access to.
The FCA’s approval lays the ground for humm to continue developing its UK footprint; with the lender confirming the arrival of more products by the end of the year.
When launched, humm’s regulated UK credit offering will give consumers the ability to make purchases with a range of retailers and e-commerce outlets, with a particular focus on the dental, legal, professional qualification and home renovation sectors.
“This FCA approval will allow us to provide a range of credit solutions at different stages of our customers’ lives, allowing them to renovate their kitchens, pay for dental services, or access new professional qualifications,” Byrne explains. “This will bring real competition to the market, giving UK consumers greater choice over their financial decisions and allowing retailers to provide a better offer to their customers.’’