FCA Finds New Consumer Duty Requirements Difficult For Banks

The new Consumer Duty starts next week, and the FCA found that 7.4 million people tried to get in touch with one or more of their financial service providers but were unable to do so in the 12 months before May 2022.

The FCA’s latest Financial Lives poll, which had more than 19,000 participants, gave this number.

Even though 3.6 million were able to reach one of their providers, they couldn’t get the information or help they needed, and 4.3 million said they got the information they asked for but couldn’t understand it or got it too late.

The regulator’s results come just days before the Consumer Duty goes into effect. The Duty will require companies to do what they can to help consumers get good results. This will be done through helpful and responsive customer service and clear communication that helps people make good choices.

The watchdog has said that companies that don’t do what they’re supposed to will face “robust” enforcement actions and punishment actions.

Sheldon Mills, executive director, consumers and competition comments:

“Our Consumer Duty will guide our ongoing work to improve the way firms provide customer support – getting through to your provider is the starting point for receiving help, so we will be working with them to improve in this area.”

The FCA survey also found that more and more people are using digital banking, payments, and other online services. In 2022, 88% of adults, or 42.9 million people, will bank online or use a mobile app, up from 77% in 2017.