How can the alternative finance industry learn from the BA IT failure?

BA's owner's share price dipped over the weekend and customers were left disgruntled.

I believe it is timely for the alternative lending industry to reflect on what lessons can be learned from BA's recent experience.

A lot of effort has gone into building our industry's reputation and a major systems failure for any one lender - although not as dramatic and public as the BA experience - would undo a lot of the hard work that has been done.

However, while it is inevitable that these thing happen, it is the ability to quickly recover and communicate with all those involved that can minimise the damage.

This is where well prepared business continuity plans come into play and it is important to regularly review how these are managed. The Just Loans Group has just achieved ISO 22310:2012 Business Continuity Management global certification as we appreciate the value of expert external scrutiny in this important area.

Given BA's recent experience, our certification is extremely timely and the common themes are customer service and reputation.

SMEs and commercial brokers understand that a vibrant alternative lending industry has been established, but, not surprisingly, want reassurances about the type of companies they are dealing with.

I believe that external endorsements - such as ISO certification - make a powerful statement and really enhance your reputation. It shows a commitment to quality and a focus on providing customers with a seamless service.

It’s almost inevitable that, in the future, an alternative lender will hit a bump in the road but reputational damage we will be minimised if business continuity plans are quickly and effectively implemented.