Firms are turning to technology in order to surface data and insights that solve the challenge set by the UK regulator’s incoming Consumer Duty rules, according to research by Moneyhub.
In its report FCA Consumer Duty: Business Burden or Golden Opportunity?, senior decision makers (chief executives, chairman and board directors) were interviewed on their preparedness ahead of the first Consumer Duty deadline at the end of October.
Some 38% of senior decision makers said they had either limited or no knowledge of the upcoming consumer duty legislation.
Just 22% of firms had projects in place in order to meet the deadline in 2023, and a further 28% are currently developing plans to become compliant.
According to the survey, for many of these firms, technology held the key to Consumer Duty preparedness. Just under half of firms (48%) plan to or are already investing in technology to develop and deliver more personalised and targeted communications.
And 41% also have plans to invest in technology in order to access customer data and insights. Some 23% of firms said they will invest more than £5m ($5.64m, €5.79m) to make the most of the opportunities of Open Finance.
‘No excuses left’
Samantha Seaton, chief executive of Moneyhub, said: “There are no excuses left, businesses must ensure they understand their customer completely in order to offer products and services that fit their circumstances throughout the entire duration of their relationship.
“And the only way this is possible is with an ongoing holistic view of their customer’s financial universe. By better understanding your customer, it means you can offer super relevant, appropriate products and services, and ultimately create stronger relationships and build loyalty.
“Smart, forward looking businesses will seize this moment and reap the benefits of truly understanding their customer.”
This comes several weeks after International Adviser reported that 10% of decision makers within advice firms do not believe their companies have a good understating of the Financial Conduct Authority (FCA) legislation.