HIGHER STANDARDS: FCA INTRODUCES NEW CONSUMER DUTY FOR FS FIRMS
There can be no doubt that the UK is currently navigating one of the most challenging periods in its history. Over the last two years, major events have disrupted attitudes and perceptions across a range of environments, customer experience among them.
By any measure, disruption in this space has been significant. According to the Institute of Customer Service’s ‘2021 UK Customer Satisfaction Index’, customer satisfaction in the UK continues to decline, falling to 76.8 – its lowest level since 2015 – with a considerable impact on the customer/organisation relationship.
In addition, during this period there was a rise in the number of customers experiencing problems with organisations, with issues ranging from the reliability and quality of goods and services to instances of late or slow service. That said, it should be noted that many of these problems stem from the impact of the coronavirus (COVID-19) pandemic and the UK’s exit from the European Union (EU).
“Yet the problem is not new; we have seen a worrying downward decline in customer satisfaction in this country since long before the pandemic hit,” states the Index. “As we continue to navigate a period of uncertainty and disruption, businesses must take these figures as a wake-up call to make service a boardroom priority.”
Among the sectors within the scope of the Index is financial services (FS) – one of many struggling to navigate a period of uncertainty and disruption and engage with customers. Illustrating this, in its ‘2020 Financial Lives’ survey, the Financial Conduct Authority (FCA) found that only 10 percent of consumers ‘strongly agreed’ that they had confidence in the UK financial services sector, with a further 32 percent ‘slightly agreeing’. Only 35 percent of respondents agreed that FS firms are honest and transparent in their dealings with them.
Oct-Dec 2022 Issue
Fraser Tennant