How Prepared Are Financial Firms Feeling for Consumer Duty?

In our recent virtual panel discussion, we explored how different financial firms are embracing the Consumer Duty Act and identified areas where most of their resources have been designated. The panelists engaged in insightful discussions, sharing their organisational challenges and best practices, while attendees were to engage in polls aimed at answering three key questions on preparedness, challenges, and changes related to Consumer Duty.

And because at InMoment, we value sharing knowledge as widely as possible, I’m going to share the results of that in-event poll with you here, along with a few thoughts about our learnings.

How Prepared Do You Feel for Consumer Duty?

We were pleased to see that the majority of firms who joined us felt very prepared, with 50% selecting this option, and no one stating that they weren’t prepared at all. 

The panelists shared valuable insights on embracing changes and putting customers at the center of their business. A key takeaway was the importance of ensuring that everyone in the organisation was informed and that they understood what Consumer Duty means for the whole business, but also their specific accountability in delivering against it. Increasing awareness and providing comprehensive training to employees are crucial steps toward ensuring adherence to the act’s expectations.

The discussion around preparation also highlighted the importance of assessing product alignment with target customers, the risks of non-compliance, and the benefits of adopting a customer-first approach. 

Furthermore, the concept of “substantive compliance” was emphasized as a means to exceed expectations and gain a competitive advantage. Ensuring the needs of vulnerable customers are met was also discussed as a crucial aspect of achieving desired outcomes.

What Have Been Your Biggest Challenges in Getting Ready for Consumer Duty?

When asked about the biggest challenges they have faced, there was an equal split between “creating change within the organisation to adapt to the FCA requirements” and “conflicting priorities.” Both challenges undoubtedly speak to the need to implement new processes as well as ways of thinking, especially when strategic plans or other requirements such as digital transformation were already planned as necessities.

Solving for these challenges requires an organisation to embrace the Consumer Duty Act as an opportunity for a strategic evolution, rather than a complete upheaval of existing business strategies. The key is in adapting your perspective to see these adjustments as a fine tuning rather than a complete abandonment of the preexisting travel plan.

There was also emphasis on fostering a culture of ongoing learning and improvement. By embracing a mindset of adaptability and remaining attuned to shifting customer expectations and regulatory landscapes, organisations will be best able to meet the challenges and seize the opportunities presented by the act.

What Are the Biggest Changes That You Have Made Towards Identifying Risk Amongst Your Customers?

Lastly, we asked attendees about the biggest changes they had made to identify at-risk customers. The poll and the subsequent discussion revealed the significant industry-wide adoption of integrating diverse data sources (other than traditional surveys) into Marketing Intelligence (MI), with the third poll showing that 81% had integrated different data sources into their reporting. This integration empowers organisations to leverage comprehensive data, driving focus and strategic changes that are aligned with evolving customer needs.

Leaders in this space have continued to make adjustments to their CX programmes to support Consumer Duty requirements such as reviewing touchpoints and customer journeys to bridge gaps, more effective dissemination of customer insights to stakeholders, and a greater focus on measuring consumer understanding in order to take proactive action to address improvement areas. This final action leads to not only improved communication out to customers but also improved internal communication around expectations and making material more inclusive to drive better understanding.

“Firms should harness the benefits of data and technology to improve their services and understand the outcomes they achieve for their customers.”


To get access to detailed notes, poll data and more, you can click here for a full summary of the Consumer Duty Panel Discussion! 

It’s clear that the most successful brands will be those that focus on enhancing their customer-centric culture, putting the customer at the heart of all decision making, rather than focusing only on a compliance-first approach. 

Having the right experience programme in place can help build customer centricity and use it to your advantage!

Find out how InMoment can help you embrace these changes to:

  1. Deliver positive outcomes for your customers
  2. Gain an improved consumer understanding
  3. Identify customers at risk to complain and churn
  4. Develop a culture of continuous experience improvement

Click the link if you would like to learn more about how InMoment can help you with Consumer Duty Compliance!

Embracing Consumer Duty to Deliver Positive Outcomes for the UK Financial Services Sector

The new FCA Consumer Duty is intended to improve customer outcomes and promote better customer experiences in the financial industry in the United Kingdom (UK) by setting higher and clearer standards of consumer protection. By prioritising customer interests and designing products and services that meet their needs, firms can create more positive and beneficial experiences for customers.

What Is Consumer Duty?

Consumer Duty Principle, proposed by FCA, is a significant new legislation for the UK Financial Services sector. The legislation aims to set a consistent and increased standard of care to customers, and mandates organisations to put the needs of the customer first. 

What Are the Details of the New FCA Consumer Duty?

The FCA Consumer Duty has three golden rules that every UK financial organisation will need to adhere to:

  1. Act in Good Faith Towards Customers: Organisations are required to act in the best interests of their customers and prioritise their interests over their own. They must also ensure that their products and services meet the needs of their customers.
  1. Allow and Support Customers to Pursue their Financial Objectives: Organisations must design their products and services to meet the needs of their customers and ensure they are fit for purpose. They must also ensure that their pricing is transparent, fair, and not misleading.
  1. Avoid Causing Foreseeable Harm to Customers: Organisations must provide clear and accessible information to their customers about their products and services, including any risks associated with them. This includes communicating in plain language and avoiding jargon or technical terms that customers may not understand.

How Will the Act Benefit Consumers and Financial Organisations?

If you get it right, our experts at InMoment foresee the Consumer Duty Principle bringing many benefits to consumers and financial organisations alike, such as: 

  • Customer Trust and Loyalty: Putting the customer’s interests first can lead to increased customer satisfaction, positive word-of-mouth, and repeat business.
  • Efficiency and Effectiveness: By designing products and services that meet the needs of your customers, you are likely to see increased efficiency and effectiveness in your business operations. This can lead to cost savings and improved profitability.
  • Brand Image and Reputation: By promoting responsible business practices and prioritising customer outcomes, you can enhance your company’s reputation as a socially responsible and ethical business.

Consumer Duty + Experience Improvement = Customer Centricity! 

Customer experience (CX) platforms can help financial services organisations comply with the FCA Consumer Duty more effectively by helping them better understand their customers’ needs, improve their products and services, and ensure that they are acting in their customers’ best interests. With an integrated CX approach of leveraging the right data, technology, and CX expertise you can take the right action to comply with Consumer Duty in the following ways:

  • Data Management: Managing customer data more efficiently helps to better understand your customers’ needs and preferences, which is essential to designing products and services that meet those needs.
  • AI-powered Analytics: Analysing customer behaviour and preferences helps you identify areas for improvement and make adjustments to products and services in order to better serve customers.
  • Communication Management: Managing communications with customers more efficiently ensures that they receive clear and accessible information about your products and services and  any concerns or questions can be addressed immediately.
  • Compliance Management: Tracking compliance activities ensures that all customer interactions are recorded and monitored and reported correctly and efficiently. 

Five Ways Financial Organisations Can Prepare for Consumer Duty

To comply with Consumer Duty, better technology, data management, and improving customer experiences will be crucial to the success of every financial organisation in the UK. At the onset and in the future, it will be necessary to make experiences, compliance, and reporting processes more efficient. Here’s a few ways InMoment ca help you to prepare and ensure your organisation is set up for success.  

#1: Proactively Detect Consumer Intent to Complain

Ensure you respond to complaints. Simplify the process by applying a tool that automatically identifies and alerts you to those customers who intend to complain or even switch providers. Using InMoments AI-powered technology, those customers who intend to complain, but have not yet done so, can be flagged, with a formal case raised to resolve their issue, avoiding a formal complaint and potential fine.

#2: Comprehensive Review and Audit of Survey and Listening Posts

Start a comprehensive review and audit of all of your existing survey and listening posts, ensuring you are asking the right questions and capturing the most appropriate metrics in regards to consumer duty. We can provide actionable recommendations to ensure your listening posts are set up to deliver the right outcomes, and that your surveys are WCAG 2.0 compliant.

#3: Evaluate and Solve Compliance Issues at Scale 

Delivering consistent and compliant customer communications can feel like a daunting task. We can help you evaluate all structured, semi structured, and unstructured communication to advise if each piece of communication is compliant with the consumer duty before they go live, providing recommendations for areas of improvement. 

#4: Create Seamless Experiences for Your Most Vulnerable Customers 

It is critical that your most vulnerable customers continue to have a seamless experience with your brand. Our technology can automatically alert you to any aspects of your customer journey that are not providing an inclusive experience. Through our unique Consumer Duty Taxonomy consisting of DEI, Compliance, and the Financial Services Industry Pack, we can identify those customers who are NOT getting the right outcomes, and provide recommendations on how to improve their experience.

#5: Combine a Compliance Focus With a Customer-Centric Culture

The most successful brands will be those that focus on enhancing their customer-centric culture, putting the customer at the heart of all decision making, rather than focusing only on a compliance- first approach. Celebrate and socialise positive customer experiences, champion positive customer outcomes across the entire organisation.

If you’d like to learn more about how InMoment can help, please reach out to or click here to read our full consumer duty solution brief!

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