Summary – Find the full update here (including all the links & more)
This weeks update covers developments regarding FCA policy changes, collaborations aimed at enhancing consumer vulnerability assessments, and upcoming events designed to share best practices on regulatory compliance and customer support. The industry is particularly engaged in discussions about the persistent debt rules and Consumer Duty, reflecting a dynamic regulatory landscape.
Key Points
- Adam Butler at StepChange discusses the FCA’s new BiFD policy rules (PS24/2).
- The FCA announced a review of persistent debt rules set to take place later this year.
- UK Finance’s report on increased credit card transactions and spending in January 2024.
- The rate of inflation decreased to 3.2% in March 2024, down from 3.4% in February.
- The FCA is actively reviewing firms’ treatments of customers in vulnerable circumstances as per their 2021 commitment.
- The bulletin references a number of blogs and articles discussing financial trends and regulatory updates.
- Collaborations between entities like VRS and TransUnion focus on better identifying consumer vulnerability in lending.
- Anglian Water’s collaboration with Plain Numbers aims to enhance communication and inclusivity.
- Upcoming events include the FourNet Consumer Duty event and the MoneyPlus Advice event.
- Training initiatives discussed include enhancing empathy and the importance of internal data sharing for better outcomes.
- The industry’s response to the FCA’s Consumer Duty includes a focus on identifying financial difficulty early and providing support.
- Discussions about operational and financial resilience in motor finance highlight the sector’s high-profile FCA interventions.
Key Statistics
- Credit card transactions in January 2024 were 347.9 million, up 8.4% from January 2023.
- Total credit card spending in January 2024 was £20.4 billion, also an 8.4% increase from the previous year.
- Outstanding balances on credit card accounts grew by 9.4% over the 12 months to January 2024.
- The percentage of outstanding balances that incurred interest in January 2024 was 50.5%, down from 51.3% the previous year.
- The inflation rate as of March 2024 stood at 3.2%.
Key Takeaways
- The financial services industry remains focused on adapting to and implementing new FCA policies, especially concerning consumer protection.
- Persistent debt and the broader implications of financial difficulty are key areas of regulatory focus.
- Collaborative efforts are crucial for enhancing the industry’s approach to identifying and supporting vulnerable consumers.
- Upcoming industry events serve as pivotal platforms for sharing insights and best practices on regulatory compliance and customer support.
- Training and development focused on empathy and data sharing are vital for improving the effectiveness of vulnerability management.
- Consumer Duty is driving firms to reassess how they identify and address customer difficulties early in the financial lifecycle.
- Financial resilience and operational planning are becoming more integrated into corporate strategies across the financial sector.
- Regulatory updates and the revisiting of guidelines like FG21/1 are indicative of the FCA’s ongoing commitment to consumer welfare.
- Engagement in public discussions and critiques of current policies by industry experts helps shape more effective regulatory frameworks.
- Transparency in reporting and the strategic use of management information systems are highlighted as areas needing improvement.
- The decrease in inflation might suggest a shifting economic environment, potentially affecting consumer spending and debt levels.
- Ongoing reviews and updates to FCA guidelines underscore the dynamic nature of the regulatory landscape affecting financial services.
Access all the updates here
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