Rising Insolvencies and Training for Practitioners: Insights from Aryza’s Education Expert

According to gov.uk, 10,524 individuals entered insolvency in England and Wales in July 2024. This is 24% higher than in July 2023. What are the main reasons, and do you expect this trend to continue?

Neil Taylor The economic downturn following the pandemic has led to a slower-than-expected recovery. Many people not only lost their jobs, but also their confidence and, in many cases, their ability to manage their finances. It’s often said that it takes about a year for someone to fully grasp the severity of their financial troubles and seek help, such as reaching out to an insolvency specialist. We’re now witnessing the consequences of these delays. Feelings of embarrassment or perceived failure often prevent people from acting sooner, leading to the current surge in personal insolvencies. With money tight and global economic challenges persisting, fear is making it even harder for people to manage their financial situations.

How did the lack of savings during the pandemic worsen financial struggles?

Neil Taylor In the UK, it’s commonly advised that people save the equivalent of three months’ salary to cover unforeseen circumstances. In reality, the average person had only about £60 saved, while the pandemic brought 15 to 20 months of uncertainty. Without a solid financial foundation, people struggled to manage. They fell behind on bills, avoided contacting credit card companies, banks, or landlords, and hoped the problem would simply disappear. But, of course, it didn’t. This avoidance has led to long-term challenges, contributing to the widespread financial difficulties we see today.

The cost of living crisis is frequently discussed—would you say this is a key factor in people’s financial difficulties?

Neil Taylor Absolutely, and in a big way. We’ve seen comparisons highlighting how much the cost of a basic shopping basket has increased over the past two or three years. Meanwhile, many people are either out of work, or their wages haven’t kept pace with inflation. As a result, they’re simply able to afford less. There’s only so long someone can manage before they start thinking, ‘I can’t afford to live.’ It boils down to fundamental needs—people want to be able to feed themselves and their families, and right now, many feel they’re struggling to do so.

How is AI impacting the training of IPs?

Neil Taylor AI is still very much on the periphery of training, particularly in industries like insolvency. It’s important to distinguish between traditional training and digital or remote learning, which we’ve embraced through our app. We offer much of our training via webcasts, and we also provide resources like a glossary of terms where users can quickly look up industry-specific phrases or acronyms, such as “equitable trust” or “destructive trust.” While this could be seen as a form of AI, it hasn’t truly made its way into classrooms or lecture halls just yet. I believe there’s still a strong case for face-to-face, dynamic, and human-led training. AI can’t replace the value of in-person teaching, where imagination, energy, and interaction play critical roles in learning. It will likely be a couple of generations before AI can make a real impact in training IPs.

Many sectors are facing a shortage of skilled workers due to several reasons like Brexit and demographic changes. Is the IP profession affected by this as well?

Neil Taylor IPs in the UK, like doctors or architects, must be licensed. This involves renewing their license annually, and I was part of the group that developed the licensing system back in 1989. The training prepares candidates for the licensing exam, which is known for its rigorous standards. Interestingly, more practitioners retire or leave the profession each year than qualify. The exam is challenging and held once a year, which means candidates need to be well-prepared and dedicated. Encouraging people to plan their careers with a focus on becoming an IP is essential, especially as we face a natural decline in numbers. It’s important to promote the value of the profession and support individuals through the qualification process.

So, given the organic decline in the number of IPs, do you think software could help manage more cases?

Neil Taylor Yes, absolutely. Software can help manage more cases by making training and information more accessible. As mentioned earlier, we have developed tools that offer quick access to definitions of terms, acronyms, and phrases. This allows practitioners, with just the press of a button, to get the information they need instantly, without interrupting their workflow. It makes learning on the job much more seamless.

Technology also plays a role in building crucial skills, like dealing with difficult debtors. We focus on these skills, which you might call interpersonal skills. For example, knowing how to pause and listen can lead to a more productive conversation, or responding calmly to aggression can help build trust. By mastering these techniques, professionals can gain valuable information and manage difficult situations more effectively.

What key strategies contributed to your success in gaining over 90% of the insolvency exam training market?

Neil Taylor I believe the key is really understanding what people need. It’s not just about delivering a product like a manual or an exam, but about integrating learning into people’s lives. That’s why we created the app. It allows users to access webcasts and information whenever they need it—whether it’s on their smartphone, tablet, or laptop. For example, if someone commutes to work by train, they can use that time for training, listening through their earbuds and engaging with content on their phone.

We’re also proud of our commitment to accelerated learning, using techniques that help people retain information more effectively. Right-brain training is something we’re passionate about. It helps learners make real connections with the material, so if they have five concepts to learn, they can grasp them in a way that sticks. We incorporate these methods into all our materials, from webcasts to face-to-face sessions.

Face-to-face training is something many have moved away from. Why do you think that personal element remains so important?

Neil Taylor There’s something invaluable about human interaction in education. Being able to see someone’s struggle or excitement in real-time, or sensing when a group is confused, requires human skills that technology alone can’t replace. Education is, at its core, a very human activity, and we take pride in delivering that personal touch. We’re also highly innovative and fast-paced, constantly evolving to meet the demands of the 21st century. Training, learning, and understanding must keep up with this speed, and we’re committed to delivering our training in a way that’s energetic, dynamic, and always moving forward.

Could you explain the concept of right-brain learning, please?

Neil Taylor There’s a fascinating concept of accelerated learning that was pioneered by a Bulgarian named Georgi Lozanov, who developed techniques to engage the brain more effectively. Left-brain individuals tend to be more kinesthetic and structured, which is valuable—especially in fields requiring precision like mathematics and finance. However, when it comes to learning, a more dynamic, fluid approach often works better. Right-brain activities like using pictures, storytelling, humor, and music are at the heart of accelerated learning. These techniques encourage people to build both confidence and competence in how they learn and apply their knowledge.

Can you tell us a bit more about the app?

Neil Taylor Our app is designed to guide students through exam training with a clear, structured study plan over a six-month period, helping them organize their time. With the push of a button, it provides access to webcasts, tests, and explanations. It even teaches right-brain learning techniques, all available on your phone, laptop, or tablet, making training accessible and adaptable to modern life. We also have a feature called the CPD TAP, which stands for Continuing Professional Development. This feature gives users immediate access to CPD resources. For example, if a major case comes out, we’ll have a recorded webcast by the next day, explaining the practical implications for IPs. They can watch it on their commute and walk into work already up to speed on changes, like new directors’ duties, without waiting for a conference months down the line. The app delivers instant, practical updates that users can apply to their everyday roles.

How many experts are working on this?

Neil Taylor We have four technically skilled IPs who manage the content for our CPD TAP. Each week, they divide the workload, with each IP researching, writing, and recording a webcast. This ensures that the information is both accurate and timely. What makes it even more engaging is the variety of voices and styles, which keeps the CPD TAP fresh and interesting for users.

Can you already say what role your offering will play within the Aryza ecosystem?

Neil Taylor Aryza is well-positioned to support professionals in assessing client behavior at critical points during credit transactions. It’s essential to understand whether clients are being fully transparent, withholding information, or seeking additional resources. There are clear signs and strategies for detecting this, and interpersonal and behavioral skills are crucial throughout the financial journey. We specialize in training professionals to recognize and respond to different personality types, helping them see beyond the numbers and understand the human being behind the data. We’re exceptionally skilled at equipping people with the tools to adapt their approach, depending on who they are dealing with. There’s also a plan to offer tailored, pre-recorded behavioral skills training for various stages of the financial process, ensuring professionals are equipped to engage more effectively with clients across the board. This training will be an essential addition to Aryza’s offerings, enhancing the capabilities of practitioners throughout the credit lifecycle.

Does data security play a challenge in achieving this?

Neil Taylor We are very conscious of data privacy. We don’t share or collect personal data in a way that compromises individual privacy. Our focus is on addressing skills, challenges, and issues, not on individuals. Any data we do collect is fully anonymized and never personalized, so data privacy is not a concern for us.

You wrote a book titled “Clues from the Universe: Designing your Life,” in which two characters meet in a therapist’s waiting room. Does an IP sometimes need to be a bit of a therapist as well?

Neil Taylor The book draws from my own experiences and stories I’ve gathered over the years. I’ve had an incredibly interesting life, and I believe that if I’m the designer of my life, why would I create anything less than extraordinary? As I was coaching, training, and designing programs focused on behavioral and leadership skills, I found myself sharing and collecting stories about people navigating personal challenges and disruptions. Over time, I realized there was a book in these experiences.

“Clues from the Universe” was born from these stories—both mine and others’—that evolved during my years of training people. In the book, no one is named. This allows readers to project their own experiences, names, and faces onto the characters. For example, if there’s a tough character in a story, I don’t name them Bill or anyone specific, because the reader can then imagine someone they know and bring their own interpretation to it.

The stories are all connected to themes of learning, growing, evolving, and questioning. This mirrors what I did naturally as a trainer, leader, and designer of training programs. Over time, these stories intertwined, with some characters crossing between chapters, allowing for continuity and growth across the book. It sounds complex, but it’s not—it’s more of an invitation for the reader to reflect on their own journey. Who am I in this story? Do I have choices? Why would I act this way? It encourages personal growth and self-discovery.

What will your role be within Aryza?

Neil Taylor My job title is Head of Education Technology: Legal and Insolvency, and my role involves leveraging my experience, knowledge, and technical skills, along with my imagination and ambition, to help others grow. It’s about helping people develop not only technically, but also in terms of their personal style. A key focus is on expanding digital content in areas like CPD, with the goal of introducing and adapting these offerings across different regions within the group to meet the specific needs of each market. The role has a strong technical training bias, but it’s also about understanding the products, identifying where they will work best, and exceeding expectations in delivering them to clients and customers.