Prepping for Consumer Duty: Evidencing Outcomes and Cultural Change
With annoucements coming thick and fast, and less than 70 days to go to live date for Consumer Duty, Kevin and Chris caught up on some of the latest developments and challenges, with a particular focus on evidencing outcomes.
Key Points
- The financial services industry is undergoing a transformation to prioritize better customer outcomes.
- Cultural shifts and training are crucial to aligning practices with customer-centric goals.
- Monitoring and measuring customer outcomes require the use of appropriate metrics beyond traditional measures.
- Engaging customers through their preferred digital channels can enhance the overall experience.
- Allocation of cases and the granularity of treatment paths need careful consideration.
- Data strategies and segmentation play a critical role in understanding customer behavior and vulnerability.
- Affordability assessments and income optimization are important for sustainable payment arrangements.
- Early engagement and proactive problem-solving are key to avoiding future financial difficulties.
- Customer experience survey scores should reflect alignment with customer intent and outcomes.
- Using channels that lead to the best customer outcomes is essential for effective communication.
- Non-disclosure of vulnerabilities poses challenges in achieving better customer outcomes.
- The cultural aspect of embracing change is vital, even if all measures and evidence are not yet fully in place.
Key Takeaways
- The financial services industry needs to shift towards a customer-centric approach for better outcomes.
- Enhancing training and fostering cultural changes are critical in achieving improved customer outcomes.
- Metrics should focus on customer experience, early engagement, and disclosure of vulnerabilities.
- Engaging customers through their preferred digital channels can enhance communication and outcomes.
- Allocation of cases and treatment paths should consider granularity and risk-based segmentation.
- Data strategies and segmentation help in understanding customer behavior and identifying vulnerability.
- Affordability assessments and income optimization are essential for sustainable payment arrangements.
- Early engagement and proactive problem-solving can help prevent future financial difficulties.
- Customer experience survey scores should align with customer intent and outcomes, not just compliance.
- Leveraging the right communication channels is important for effective customer engagement.
- Non-disclosure of vulnerabilities poses challenges, and efforts should be made to encourage disclosure.
- Cultural readiness and embracing change are key factors in achieving better customer outcomes.
Regulatory and Cultural Changes upon us
Frank Brown from GRR consulting discusses the challenges and implications of upcoming regulatory changes, particularly focusing on consumer duty and operational resilience. There is a need for firms to proactively address these changes and not underestimate their significance.
The cultural aspects of compliance is important, especially aligning with counterparties, measuring progress, and understanding the potential future direction of regulatory interventions.
While acknowledging the demanding nature of the deadlines, firms are encouraged to embrace these changes as opportunities for improvement. There are potential commercial impacts and this is need for thorough preparation.
Key Summary Points:
- The conversation revolves around the challenges and significance of implementing consumer duty and operational resilience within organizations.
- There is an emphasize the need for cultural change, engaging the first line, and aligning with best practices.
- The regulator’s interventionist approach is highlighted, with a focus on principles and foreseeable harm.
- Measuring progress, considering customer outcomes, and driving continuous improvement is all important
- There will be commercial impacts and urge firms to take action and meet the upcoming deadlines.
Key Takeaways:
- Consumer duty and operational resilience are crucial regulatory changes that require cultural transformation within organizations.
- Engaging the first line and aligning with best practices are essential for successful implementation.
- Measuring progress, focusing on customer outcomes, and demonstrating compliance are key aspects of the new regulatory landscape.
- The regulator’s interventionist approach emphasizes principles and foreseeable harm.
- Meeting the deadlines and driving continuous improvement are vital to mitigate commercial risks.
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