Two fifths of customers see no change in treatment post-Consumer Duty

Over two fifths (41%) of customers have said they still haven’t noticed any changes to their treatment since Consumer Duty was introduced a year ago, Moneyhub has found.

A survey of 2,000 UK consumers revealed that over a fifth (22%) said they have already noticed improvements in how they are treated as customers since Consumer Duty regulations came into effect.

The research comes ahead of deadline for financial services firms to apply Consumer Duty to closed products.

However, the research by Moneyhub has indicated that firms still have work to do to "realise" the business and consumer benefits of the regulation.

By 31 July 2024, firms regulated by the Financial Conduct Authority (FCA) must review closed products and services against all aspects of the Duty, which prompts a re-evaluation of products that current customers are on and whether they are still appropriate.

Despite this, when asked about improvements to customer outcomes, 13% of respondents said firms have failed to deliver good quality support and after-sales care, while 12% said firms failed to deliver communications that help them to make effective financial decisions.

Furthermore, one in 10 (10%) felt firms failed to offer suitable products and services that meet their needs.

Chief operating officer at Moneyhub, Dan Scholey, said: "Consumer Duty really should be a win for both businesses who want to work more efficiently and effectively as well as consumers who need more tailored solutions at affordable prices. The early feedback from firms that have embraced it is overwhelmingly positive. However, with significant fines now being imposed by the FCA we have both the stick and the carrot in place to see better outcomes delivered.

"Firms often don't know where to start, but it is always with the data. The UK has made great strides through regulation to make the data available, and with it, firms can cost-effectively understand an individual's needs and provide the right solutions at the right time. Embracing the use of third-party open data solutions is the best way for firms to meet Consumer Duty requirements while seeing a tangible impact on their customers’ day-to-day finances, and satisfaction levels."

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