Just 22% of consumers felt there had been an improvement in the way they had been treated since the rules came into effect on 31 July last year, according to a poll of 2,000 people carried out by open data software firm Moneyhub.
When asked if customer outcomes had improved, 13% of respondents said firms failed to deliver good-quality support and after-sales care, while 12% said firms did not provide communications that helped them make effective financial decisions.
A tenth believed firms failed to offer products and services that met their needs.
Younger consumers seemed to have a better experience with financial services firms, as 40% noticed a change in how banks were interacting with them, compared to just over 5% of those aged 55 and over.
Still hope for Consumer Duty impact
Moneyhub found that despite a large share of people seeing no change, 42% of respondents felt Consumer Duty would have a positive impact on the quality and range of products and services available to them. This rose to 53% among younger people.
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Two-fifths said Consumer Duty would have a “big impact” on customer servicing, with the sentiment rising to 48% among younger respondents.
Some 36% believe Consumer Duty will push banks to be more consumer-centric and similar to building societies.
Dan Scholey, COO of 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.”
Moneyhub referred to the £6.2m fine imposed on HSBC for failures in its treatment of customers who were in arrears or experiencing financial difficulty.
Scholey added: “Firms often don’t know where to start, but it is always with the data. 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.
“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.”
This article first appeared on our sister site, Mortgage Solutions, here.
