Consumer outcomes are not considered very much by the board or executive committee, according to a new survey by Aveni.
The RegTech company completed a survey to assess the preparedness of CRO and Senior Risk and Compliance Executives for the Consumer Duty.
Its report states that 67% of CROs say less than 20% of the board or executive committee’s time is currently spent talking about customer outcomes. Additionally, 59% say not a lot of what customers say is used in business decision-making.
Another major finding from the report was that 67% of financial services executives do not focus enough on customer outcomes.
Aveni said these results show the need for execs and board members to get involved and prioritise customer outcome and feedback.
As part of Consumer Duty, firms have an obligation to put consumer outcomes over and above their profitability. Aveni said, “It’s important to deliver on your promises and continually consider consumer needs in your entire process. Their outcomes will be the key metric on which all financial services businesses will be measured and a fundamental regulatory requirement.
“Unfortunately, a surprising 67% do not focus enough on these outcomes.”
The regulation states that firms need to have clear communication with customers and ensure they understand the products and services meet their needs and are fair. If the firm doesn’t focus on outcomes, Aveni begs the question as to how they can know their communications, products and services meet their customers’ needs.
It stated that customer outcomes should be a major factor behind conversations and decision-making at the board level, with or without the Duty requirements. “It’s an opportunity to put customers at the heart of your business and drive business improvement accordingly.”
Aveni also highlighted the fact that less than 50% of what customers say is used in business decision-making. It urged a greater focus on demonstrating that all complaints and expressions of dissatisfaction have been appropriately captured and recorded.
As part of this, each complaint should be followed up, resolved, reported and featured in product and service development. The RegTech company warns that the FCA will seek evidence of this.
Earlier in the year, Aveni revealed its desire to help firms meet the requirements of Consumer Duty through its Aveni Detect product. The solution analyses all customer interaction to produce data-led evidence of compliance with new FCA legislation.
Copyright © 2022 RegTech Analyst
Copyright © 2018 RegTech Analyst
