Background and Introduction
During the consultation period leading up to the Introduction of the Consumer Duty regulations the FCA stated:
- In our 2020 Financial Lives survey, only 10% of consumers ‘strongly agreed’ that they had confidence in the UK financial services industry, with a further 32% ‘slightly agreeing’. Only 35% of respondents agreed that firms are honest and transparent in their dealings with them.
As one of the 4 success measures the FCA stated they were looking for the level of consumer confidence to increase. The other measures revolved around the analysis of complaints, root causes and actions taken. Firms also have to demonstrate how they are delivering good consumer outcomes throughout the customer journey recognising that you cannot build successful evidence based on analysing complaints alone.
Beyond looking at the the traditional KPIs for measuring successful consumer outcomes firms have started to gather feedback from customers to evidence their case. However, gathering feedback focusing on whether the firm helped the customer achieve their outcomes and whether they clearly understood the adviser or the fact that they felt the product was designed for a person like them might fall a little short of the mark.
In this short presentation we go straight to one of the key issues namely – does the customer trust you and how do you know? It’s not a question of bluntly asking this but by shaping you questions around the 4 elements of trust you can build and evidence a trustworthiness score.
The good news is that this presentation is not designed to ‘sell’ you a product or service but to stimulate your thinking on how you might accommodate our suggestions into your activities. It doesn’t require any major investment in software. Firms could manage it through Excel spreadsheets.
It’s worth spending the 35 minutes to view the video
OUTCOMES
- To define Trust and how it is an essential part of Consumer Duty Regulations
- To be able to measure Trust across the 4 components
- To monitor Trust to evaluate performance
- To know the steps to repair Trust when necessary
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