Consumer Duty: Where are firms doing well and what needs to be improved? 13 MARCH 2024

Good practice 

Improvement areas 

• Altering company purpose to signal to staff that actions and behaviours should focus on customer outcomes 
• More attention to SLAs, such as inbound abandon rate 
• Complaint root cause analysis 
• Satisfaction surveys 
• Good outcomes are a business wide requirement, not just risk or compliance (e.g. product design) and includes post-sale service 
• Increased customer focus at Board level 
• Updating staff incentives to align them to the aims of the Duty 
• Developing new data metrics to better understand customers, including governance to ensure remedial action taken as required 

• Duty primarily driven by programme, risk or compliance teams 
• Duty not discussed at Board level (firms need to ensure that good outcomes is understood at all levels, from strategies to people policies) 
• Waiting to see if the FCA will intervene on an issue instead of taking ownership themselves (the Duty requires firms to be proactive) 
• Better data and monitoring strategies required 
• Avoid repackaging existing data 
• Think seriously about what information is required to really understand customers outcomes and the issues they may be facing 

Good practice 

Improvement areas 

• Considering vulnerability as part of product design (e.g. using “selfies” for identity verification for the elderly) 
• Fully reviewing approach, systems and processes, which has resulted in: 

• improved and more consistent handling of vulnerable customers by specialist staff 
• capturing of data and identification of trends 
• quality assurance and compliance monitoring to make processes more efficient, effective, and focused on good outcomes 

• Improvements in communications, including braille, audio, large text, typographical changes such as colour and fonts to make comms more engaging 
• Changes to accommodate customers with lower financial literacy or where English is not the first language  
• Use of data and trading patterns to identify potential vulnerability, such as gambling and sending appropriate comms to those customers 
• Improving data capture and record keeping to better support customer needs (e.g. a data flag to identify and monitor outcomes for customers who have requested documents in an alternative format) 
• Turning off productivity targets for customer-facing staff if somebody is identified as vulnerable, which allows more time and a more bespoke service 

• Failure to address identified weaknesses in process to track vulnerable customers across multiple product sets  
• Gaps in data and servicing capabilities - firms should be able to identify where particular groups of customers (especially those who are vulnerable) receive poorer outcomes than other customers and take action to address 
• Avoid automatically assessing all consumers over a certain age as vulnerable - age is relevant to vulnerability but a generalised approach risks firms not tailoring support to individual needs 
• Avoid asking customers to identify as vulnerable and then unnecessarily requesting evidence of this 
• Tell those who identify as vulnerable that it might affect their ability to receive the service, as it is a barrier to identifying vulnerability and ensuring customers get the right support 
• Avoid asking customers to repeatedly disclose their additional needs or personal circumstances when passed between teams 
• Avoid causing foreseeable harm, including the impact of being asked to disclose personal circumstances, mental wellbeing, or ability to engage 

Good practice 

Improvement areas 

• Working with customers to improve comms across different channels, such as layout and presentation to improve clarity 
• Simplifying language with one firm rolling out a “jargon buster” library 
• Website accessibility – better navigation for support and contact details, including requesting an outbound call from a firm from the “contact us” page 
• Developing customer understanding frameworks to support good outcomes 
• Redesigning customer journeys to focus on how consumers behave in practice and identifying risks of harm 
• Identifying where customers could be subject to fees and charges and adding “in the moment” prompts and push notifications during the customer journey to advise of these costs 
• Updating customer interaction points and materials, such as scripts, and delivering training to better equip staff to support customer understanding  

• Lack of clarity with customers about what charges apply and when 
• Provide worked examples of product and service costs 

Good practice 

Improvement areas 

• Ensuring the same level of support offered to new customers is available to existing customers 
• Removal of negative obstacles and “sludge” practices from customer journeys, which make it difficult for consumers to act in their own interests 
• Introduction of positive interventions in customer journeys (e.g. one firm directs customers to an agent for tailored support where there are indications they may struggle with repayments, avoiding customers overstretching and setting unsustainable repayment amount) 
• Some firms have introduced new, flexible repayment plans to support customers struggling to keep up with credit repayments 
• One firm switched its third-party support provider (outsourcer) due to service challenges 
• Processes put in place to monitor the support provided and identify areas of improvement - one firm launched an online panel which enables consumers to provide feedback 
• One firm identified that individuals who act as Power of Attorney couldn’t service all the products in the same way the customer could – this firm made changes to ensure these individuals can now have the same options as the account holder 

• Staff not trained well enough to have complex conversations 
• Firms expected to train their staff to an appropriate level so they can support good outcomes for their customers, for example, by fully understanding their circumstances and finding appropriate and tailored solutions where needed  
• Staff not taking time to understand customer circumstances where they are in financial difficulty - this may mean customers do not receive the right forbearance solution or advice about other sources of help, including customers with vulnerable characteristics, which could lead to harm including stress and unnecessary delay