Podcast ¦ RO-AR.com : RO-AR.com : Enhancing Communications Clarity – Peter Wordsworth, Consumer Duty Services

Summary

In this podcast, Peter Wordsworth, the director of consumer duty services, discusses the current challenges in the debt advice sector and the impact of the Consumer Duty regulation. He highlights the increasing demand for digital debt advice and the importance of technology in meeting customer expectations. Wordsworth also talks about the cultural change required to shift focus from process-oriented outcomes to data-driven outcomes. He emphasizes the need for organizations to demonstrate objectively through data how they are delivering good consumer outcomes and using that data to improve future outcomes. He also mentions the influx of innovative tech solutions in the market, but acknowledges the challenge of choosing the right ones due to budget and resource constraints.

Key Points

• The debt advice sector is facing challenges in terms of funding and meeting the demand for advice.
• Digital debt advice is becoming increasingly important, as customers prefer mobile interactions and ease of document upload.
• The Consumer Duty regulation has brought a shift to an outcomes-focused approach, which requires organizations to demonstrate objective evidence of delivering good consumer outcomes.
• Evidencing outcomes and using data to improve future outcomes is a challenge for many firms.
• Legacy products and systems pose a challenge in designing processes that deliver good consumer outcomes.
• There is a growing ecosystem of innovative tech solutions in the market, but firms need to carefully choose the ones that align with their priorities and resources.
• There has been a decrease in insolvency or bankruptcy cases, possibly due to changes in funding and the FCA ban on introducers.
• The insolvency market is going through an adjustment period, with a focus on attracting customers through different routes and addressing over-selling allegations.

Key Statistics

• Insolvency cases have seen a decrease, possibly due to changes in funding and the FCA ban on introducers.

Key Takeaways

• The debt advice sector needs to embrace digital solutions to meet the demand for advice.
• Firms should focus on objectively evidencing outcomes and using data to improve future outcomes.
• Legacy products and systems may hinder the ability to deliver good consumer outcomes.
• Firms should carefully choose innovative tech solutions that align with their priorities and resources.
• The insolvency market is going through an adjustment period with changes in funding and the ban on introducers.
• Addressing over-selling allegations and improving customer attraction routes are key in the insolvency market.