Released along side the FCA review into firm treatment of customers in vulnerable circumstances, this report reviewed areas of improvement to support good customer outcomes.
https://www.fca.org.uk/publications/good-and-poor-practice/consumer-support-outcome-good-practices-areas-improvement
Summary:
This document outlined the findings from the FCA’s review of financial services firms’ approaches to consumer support, with a focus on how firms meet customer needs, facilitate access to support, foster a supportive culture, and monitor outcomes. It evaluates both good practices and areas for improvement in these domains, providing firms with a framework to align their strategies with the Consumer Duty requirements.
Key Takeaways:
- Meeting Customer Needs: Firms need to align their support services to the specific needs of their customer base, including those with characteristics of vulnerability. Proactive efforts like using digital support and monitoring account activity for vulnerable customers were highlighted as good practices.
- Access to Support: Support must be easy to access with minimal barriers. Firms should ensure that post-sale support is as accessible as pre-sale services. Some firms have enhanced support channels through tailored communication and digital tools.
- Culture and Governance: A supportive culture is crucial. Firms should integrate customer support into performance management, training, and governance frameworks. Many firms have improved their staff training programs, emphasising customer advocacy and vulnerability awareness.
- Outcomes Monitoring: Monitoring should go beyond transactional metrics like wait times, incorporating both qualitative and quantitative data. Firms are encouraged to monitor the effectiveness of customer support, including through customer feedback and thematic reviews.
- Third-Party Oversight: Firms outsourcing customer support need robust mechanisms to monitor third-party services, ensuring they meet the same standards of customer outcomes.
Innovation:
- TEXAS Model: A customer interaction model designed to ensure sensitive information is collected with explicit consent, enhancing support for vulnerable customers while complying with data protection.
- Vulnerability Scoring: Data analytics used to generate a vulnerability score for customers, adjusting their support offering based on identified needs.
- Proactive Digital Support: Some firms have used web chat tools that flag vulnerability-related keywords, ensuring swift support for at-risk customers.
Key Statistics:
- 81% of firms in the FCA survey provided easy access for staff to record vulnerability information.
- 48% of firms offer dedicated telephone support for vulnerable customers.
- 44% provide dedicated email support for vulnerable customer groups.
- 66% of firms surveyed have specialist training for identifying and supporting vulnerable customers.
Original: LINK
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