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“As Consumer Duty demands firms to evidence good outcomes for clients, optimising more of the advice process is the most logical nextstep in an ongoing process”

Nick Hall, Business Development Director, Wealth Wizards.

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‍Unlocking the Power of Digital

Understanding the Post-Consumer Duty Landscape

The Consumer Duty deadline may have passed, but the 31st ofJuly should not be seen as an endpoint. Rather it is the start of a process.The FCA will be looking for financial advice firms to have in place and continue to improve the outcomes they deliver to their customers and clients.

FCA's Position on Consumer Duty

In a speech on 10 May 2023, Sheldon Mills, Executive Director of Consumers and Competition at the FCA, outlined the regulator’s supervisory and enforcement approach. Importantly, he highlighted that the FCA views Consumer Duty as a tool. Its purpose? To make “all firms think harder about innovating and competing to find better ways to serve customers”.

The Core of Consumer Duty

At the heart of delivering on the Consumer Duty rules is‘ 'consistency of process’. Whether it's new or existing clients, or any segment of the business serving them, firms must ensure they receive service that reliably delivers on the standards set by the Consumer Duty.

Embracing Digital Transformation for Consistency

To achieve this consistency and ensure compliance, firms can optimise their workflows with digital processes. Here’s why: Consistent Client Care: Embracing digital tools means offering consistent, high-level customer care throughout the advice journey –from onboarding to client reviews.

Empowered Interactions: Digital processes ensure all interactions, from fact-finding to providing advice, are automatically recorded. This serves as proof of delivering positive outcomes.

Personalisation: Remember, optimisation isn’t one-size-fits-all. Every client's journey can be tailored to their unique circumstances and inputs.

The Human Touch in a Digital Age

While digital processes ease the burden of complying withConsumer Duty, they don’t replace the human element. Advisers can now concentrate on what clients value most: human interaction and strong relationships.

Growth and Technology

For growing firms, especially those looking to serve a broader market, the right technology is pivotal. It ensures consistent service and efficient resource allocation.

* https://www.fca.org.uk/news/speeches/countdown-consumer-duty/

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