In a welcome step forward for our industry, the Financial Conduct Authority’s new Consumer Duty regulation represents the responsibility that we, and every financial organisation, has to be the best we can for our customers, every time.
Implementing Consumer Duty is a clear extension of our purpose-led strategy to champion the potential of people, families and businesses at every stage of their lives, and emphasises the importance of delivering good outcomes for the customers we serve.
Our purpose shapes everything we do - from how we make decisions, to how we develop our products and services and work as One Bank. But if we make mistakes, there’s always more we can do to get things right every time in a measurable and consistent way.
We’re guided to deliver good customer outcomes by our values that set out what we aspire to be for our stakeholders. Our Critical People Capabilities set clear expectations on how we need to act and Our Code and our YES Check prompt us to think about doing the right thing.
What’s more, the Duty goes hand in hand with our strategy – to support customers at every stage of the lifecycle. By consistently striving to understand their needs, we can design products and propositions, customer journeys and communications that deliver good outcomes, ensuring we hold our third parties to these standards – which ultimately help us to deliver sustainable growth and long-term value for all our stakeholders.
The Duty
goes hand
in hand with
our strategy
– to support
customers
at every
stage of the
lifecycle
The basics of consumer duty
This means putting all customers in a position where they:
can make
informed decisions by getting the information they need, at the right time, in a way they can understand
are presented with suitable products and services for their individual needs
are supported
in using the products and services they have brought
receive fair value for those products and services
In short, the Duty needs all of us, whether you’re designing, selling, advising or communicating our products and services, to think about how we are putting our customers’ needs first.
The basics of consumer duty
You may be saying to yourself ‘but I do all of this already’ and that’s great! But the Duty places an emphasis on us to prove that:
We don’t cause
foreseeable harm –
do you always consider whether the actions you take (or do not take) could cause harm to our customers? Are you confident the customer is getting the best product and service for them from pre-sale to end of life? Have you considered any vulnerabilities?
We’re helping
customers to achieve
their financial goals – do
you know what these are
and what may be stopping them from achieving these? How do you help to put your customers in a better place to make decisions in line with their needs and financial goals?
We always act in good faith. That’s always acting in our customers’ best interests. Do you ever walk past something that doesn’t feel quite right?