The new Consumer Duty regulation is a contentious topic across all FCA-regulated businesses right now, but customer experience specialist insight6 is reassuring firms it doesn’t have to be a business headache.

Instead, the Sutton Coldfield firm is encouraging businesses to see the added opportunity it could bring if implemented correctly.

Shaun Cremins (pictured), CX cirector at insight6 explains: “Putting your customers’ needs first is essentially the cornerstone of the Consumer Duty – it’s good business practice that will not only benefit the client but will also enable you to win and retain more business, meaning increased profits.”

The responsibility is being placed upon regulated firms to ensure they operate in their client’s best interests and treat them fairly. The regulator also requires firms to consistently review and evidence their practice across multiple Client Engagement touchpoints.

Shaun added: “Whilst this seeks to improve the client experience, we have concerns that this could become little more than a tick-box exercise for some firms which will add little value to anyone.

“It should instead be viewed as an opportunity to deliver a consistently positive client experience which will add real value to the business over the long-term.”

Firms have until the end of this month to make their annual ‘declarations’ to include the new code of conduct rule and July 2023 to implement them. However, many firms are unclear as to where to start and over 50 per cent say they are “not ready” for the Consumer Duty regulations.

To help firms better understand the regulation requirements and plan to become compliant, insight6 has created a three-step plan.

Insight6 states the first step to compliance should involve mapping out the firm’s current client journey and where the business currently sits within the new requirements. This can be done internally, but it is always best practice to get an independent facilitator to view the business through the client’s eyes for a true picture.

This can look at multiple touchpoints; from how teams handle initial enquiries, responds to clients, provides information requested, or responds to messages, right through to effective complaint management and encouraging client referrals.

The second step is to update or embed an effective client engagement programme – ideally based on a review or client feedback – this not only seeks to improve overall client experience but also enables firms to meet the Consumer Duty regulations.

The Duty places great emphasis on safeguarding vulnerable clients from making decisions that don’t best serve their needs. Careful consideration of the client journey and evaluation of every touchpoint with the client will enable a firm to evidence how it regularly tracks any changes to a client’s situation and detail fall back plans.

The third step involves seeking continuous feedback from clients. It is likely the FCA will want to see client trust, confidence and fair value measured as a bare minimum, but it is an opportunity to delve much deeper into client’s experience and achieve better results going forward. 

Shaun concluded: “Investing in a tailored client experience solution will really help firms navigate Consumer Duty. Not only will it help make them compliant, but a system like instantinsight makes it really easy to obtain and act on real-time client data, enabling the firm to make informed decisions.”

If you need some help or advice navigating the new Consumer Duty regulation, you can contact Shaun directly – shaun.cremins@insight6.com