In July 2023, the implementation of the Consumer Duty regulation will bring considerable changes to all businesses who determine or have a material influence over customer outcomes, placing a strong emphasis on consumer protection and fair treatment. Businesses will be required to interpret and refine their requirements, establish repeatable reporting processes, and demonstrate evidence of customer journey outcomes. In this blog post, we will explore some of the key success points for businesses striving to meet these obligations and discuss how Dufrain, a technically agnostic data solutions provider, can assist in this endeavour.
Requirement refinement and reporting
One of the primary tasks for businesses is to refine their requirements regarding the Consumer Duty regulation. This involves determining whether they have the relevant data to monitor and assess consumer outcomes effectively. Businesses must consider what reporting metrics are needed to meet regulatory obligations. Establishing repeatable reporting processes is crucial to ensure ongoing compliance and provide a self-service model for assessing, monitoring and improving consumer outcomes. This can be a challenge when data is spread over a wide range of platforms and formats, but this is where our experience can help.
Understanding the customer journey
To meet the Consumer Duty requirements comprehensively, businesses must gather evidence of the customer journey. Taking a banking scenario as an example, this journey spans from the initial application, through account creation and product changes, all the way to account closure. It encompasses data from various areas of retail banking, such as savings, loans, pensions, investments, mortgages etc. By analysing this data, businesses can gain insights into customer behaviours, preferences, and potential vulnerabilities, which will enable them to enhance their offerings and improve customer outcomes where appropriate.
Fair treatment of customers
An essential aspect of the Consumer Duty is ensuring the fair treatment of all customers and requires businesses to put their customers’ needs first. By prioritising the equitable treatment of all customers, businesses can work towards eliminating disparities and providing inclusive financial services. When robust MI is established and easily accessible, this is less complicated to assess and address.
Post-July targets
In the post-July 2023 era, businesses must fully embrace the FCA’s consumer duty framework by implementing and embedding consumer focused MI, monitoring compliance, enhancing customer outcomes and staying informed about regulatory changes. To achieve this and maintain effective operations and scalable systems, businesses must also emphasise converting tactical solutions to strategic ones and paying off any remaining technological debt. Finally, by prioritising self-service reporting, operational teams will find it easier to obtain the information they require, reducing their dependency on support teams.
How Dufrain can help
Dufrain is well-positioned to support businesses in their efforts to comply with the Consumer Duty regulation. With several engagements ongoing in this area and being technology-agnostic, Dufrain can assist businesses in refining their requirements and establishing robust reporting mechanisms. Their expertise in requirement gathering, project management, data engineering, business intelligence development, and MI ensures a comprehensive approach to meeting regulatory obligations.
By leveraging our expertise, businesses can gain valuable insights into their customers’ behaviours, preferences, and needs, enabling them to enhance their offerings and meet the Consumer Duty requirements effectively from July 2023 and beyond.
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Meet Consumer Duty requirements today
Contact Dufrain today or call us on 0800 130 3656 to discuss how we can support you in meeting Consumer Duty requirements today.
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