As the Consumer Duty deadline strikes, firms are required to comply with the Duty’s rules, doing so by acting in good faith towards customers, avoiding causing foreseeable harm to customers and enabling and supporting customers to pursue their financial objectives.
Andrew Stevens, Industry Principal, Banking and Financial Services, commented on what this latest deadline will mean for the future.
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Quadient drives customer experience management for banks such as Santander. Formerly, Stevens used to drive customer experience for HSBC.
Stevens said: “Banks would be severely mistaken by thinking the final Consumer Duty deadline today represents the ‘final stretch’ of adhering to the compliance rules. The FCA is only firing the starting gun. As the Consumer Duty rules now add closed services to the rules and ushers in a new era of banking compliance, the days of hiding behind poor customer service are over. Backed by the threat of severe penalties, the FCA seeks to end the ‘bare minimum’ approach to the communication of financial information.
“Communicating the right financial information, at the best time, through the right channel, may seem like an easy task for banks. Yet, research by Quadient and Signal shows 39% of consumers claim a high level of knowledge on financial matters, but only 8% could fully grasp the intricacies of updated overdraft charges when tested.
“For banks to build trust with consumers, their communication should be proactive and personalised
“By using tools that can leverage internal data to categorise customers into groups, banks can target their messages with more success. For example, if a change in interest rates meant overdraft fees on an account would rise, banks must ensure its message is not only read, but understood by the consumer.
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By GlobalData“With the technology now available to help financial institutions rebuild trust in the age of consumer-first banking, there is simply no excuse for unclear communication and shirked responsibility.”
