Firms ‘still have work to do’ to improve service a year on from Consumer Duty

As many as two fifths of consumers have not noticed any changes to the treatment they receive from firms following the implementation of the Consumer Duty rules in 2023.

That was according to data and customer journey platform MoneyHub, which said that businesses ”still have work to do to realise the business and consumer benefits of the Consumer Duty”. 

The regulation sets out requirements for firms to follow to deliver good outcomes for their customers.

However, according to MoneyHub’s research, which was published today (1 August 2024), 13% of consumers said that firms had failed to deliver good quality support and after sales care.

Some 12%, meanwhile, said firms have failed to deliver communications that help them to make financial decisions. 

And 41% of customers said they still have not noticed any changes to their treatment.

This comes as FCA regulated companies review closed products and services against all aspects of the duty a year on from its introduction (31 July 2023).

Dan Scholey, chief operating officer at Moneyhub, 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.”

Positives

The research was conducted by Opinium Research on behalf of Moneyhub amongst 2,000 UK consumers.

It also found that customers remain hopeful that the Consumer Duty will have a significant impact on how firms interact with them.

For example, over two-fifths (42%) believe that Consumer Duty will have a positive impact on the quality and range of products and services available – rising to 53% among younger respondents.

Scholey said that data was key to bolstering service.

”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,” he added.

”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.”