Answering the call of Consumer Duty

Our proprietary research shows that 52% of people consider themselves to be confident and savvy when it comes to financial matters. However, only 21% could demonstrate understanding when tested. 

This shows a large gap in understanding. Both for those who think they understand financial matters but don’t, and those that openly acknowledge that they don’t. 

Focused on non-marketing communications, our research highlighted that these types of messages, such as changes to Ts&Cs, fee increases, and product maturity are particularly difficult for customers to understand. 

But these touchpoints are the crucial everyday experience of your brand. And, under the new spotlight of the FCA’s Consumer Duty, all regulated firms are now having to step back and review the management of customer communications.  

High expectations. Real results. 

Consumer Duty is extremely clear about what it’s trying to achieve. It demands that financial services providers support customers in pursuing their financial objectives and help them to avoid potential harm.  

Given that July 2023 is just around the corner, it’s no surprise most firms have already mobilised programmes to create a holistic view of customer communications across different teams. With a focus on identifying the communications where there’s greatest potential for customer harm. 

But painstakingly adapting thousands of communications is no panacea. Our research – and the new regulation – highlights the need for systemic change to how communications are governed, planned, designed, orchestrated, processed, and measured.

5 areas of focus 

What the FCA are looking for organisations to meet – and exceed – within the Customer Understanding outcome falls into 5 categories: 

1. Communications that equip customers to make effective decisions
2. Communications tailored to individual customers 
3. Information provided on a timely basis
4. Multiple channels of interaction 
5. Testing and monitoring of communications

How much work there is to do for each firm depends on customer communications management maturity. Firms need to start by understanding where they are, and where they’d like to get to. 

It’s a journey from focussing on the accuracy and efficiency of communication outputs; to focussing on using customer insight to drive communication experiences. Experiences that can be measured, and that equip customers to make effective decisions and achieve their financial objectives.

As with most complex change, moving from customer communications management to customer experience management is mainly about people and making simple technology choices.