ROAR Insights

This research doucment comissioned by the FCA to gather feedback from consumers around treatment from firms when in vulnerable circumstances. It was includes as part of their review into treatment of vulnerable customers. Summary below.https://www.fca.org.uk/publication/external-research/vulnerability-review-improving-outcomes-consumers-engaging-financial-services-firms.pdf Key Take Aways Consumers with multiple characteristics of vulnerability are more likely to report poor outcomes compared to others.Disclosure of vulnerability often leads to positive outcomes, but barriers to disclosure remain, such as concerns about receiving worse service.The interaction between multiple characteristics of vulnerability can… Read more

FCA review of treatment of vulnerable customers. Thi included both customer surveys and firm questionaires. Summary below.https://www.fca.org.uk/publications/multi-firm-reviews/firms-treatment-vulnerable-customers Key Take Aways Firms have made progress in supporting vulnerable customers, but challenges remain.The FCA evaluated the effectiveness of the existing guidance (FG21/1) for vulnerable customers.There is a stronger focus on delivering better outcomes for vulnerable consumers, partly driven by the Consumer Duty.Consumers in vulnerable circumstances report worse outcomes compared to others.Vulnerability often involves multiple characteristics, which complicates support.Stakeholder feedback confirms that the… Read more

Summary Authored by Grant Thornton, this report provides key insights into the regulatory technology (RegTech) landscape in the UK financial services sector. Based on a survey of 119 risk and compliance professionals, it analyzes trends, challenges, and the adoption of RegTech solutions aimed at addressing evolving regulatory obligations. The report serves as a guide for financial institutions seeking to enhance compliance through innovative technology solutions. Key Take Aways Increased Regulatory Obligations: 77% of respondents anticipate more regulatory obligations in 2024,… Read more

Summary This report outlines the urgent need for a strategic overhaul in managing consumer energy debt, exacerbated by the global energy crisis. It details the approach to debt reset and reform to provide sustainable solutions for consumers and energy suppliers. The document, issued by Ofgem, seeks stakeholder feedback on proposed interventions including a potential debt relief scheme and new standards for supplier practices. Key Take Aways Energy Debt Surge: Energy debt has increased by 91% in the last two years,… Read more

Summary This report, authored by UK Finance and Accenture, evaluates the adoption of generative AI in financial services, with a focus on practical applications, risk management, and regulatory considerations. It outlines seven prevalent use cases and examines risks associated with integrating AI technology, providing case studies to demonstrate current implementations. Key Take Aways Use Cases: AI is applied in areas such as customer service automation, fraud detection, and regulatory compliance.Adoption Trends: 12% of technology budgets were allocated to generative AI… Read more

Summary This research note, authored by the Financial Conduct Authority (FCA), investigates bias in word embeddings, a fundamental technology in natural language processing (NLP). The study explores how biases related to gender, ethnicity, age, and other demographic factors are encoded and how effectively these biases can be mitigated through techniques like Hard Debiasing. The document is part of FCA’s efforts to foster safe AI use in financial services, aligned with regulatory frameworks like the Consumer Duty. Key Take Aways Bias… Read more