The Impending Consumer Duty Deadline: A Data-Centric Approach to Financial Services
Chloe Tindall 1st August, 2024
As the financial industry braces for the upcoming Consumer Duty deadline on 31st July 2024, the spotlight turns to the pivotal role of customer data in ensuring compliance and fostering trust. This new mandate, set by the Financial Conduct Authority (FCA), elevates the standards of consumer protection, and compels firms to prioritise customer needs.
Customer Data: The Keystone of Compliance
At the heart of Consumer Duty lies the importance for firms to meticulously manage customer data. The FCA emphasises that firms must review closed products and services against all aspects of the Duty before the deadline. This entails a comprehensive understanding of customer profiles, behaviours, and needs. Accurate and up-to-date data is not just a regulatory requirement; it is the foundation upon which firms can build personalised and fair financial services.
The Wider Impact on Financial Business
The ramifications of the Consumer Duty extend beyond compliance. It is a catalyst for cultural change within the financial sector, driving innovation, healthy competition, and growth. Firms that harness the power of customer data can not only meet regulatory demands but also gain a competitive edge. They can identify market trends, tailor products, and enhance customer experiences, thereby securing customer loyalty and market share.
Locating Gone away Customers: A Duty to Reconnect
An often-overlooked aspect of the Consumer Duty is the importance of reconnecting with ‘gone away’ customers—those who have become uncontactable or have outdated details on file. The FCA expects firms to make “all reasonable and proportionate efforts” to trace and contact these individuals. This is not just a compliance exercise; it is an opportunity to re-establish relationships and ensure that all customers benefit from the Duty’s protections and services you have to offer.
Want to Learn More?
As the Consumer Duty deadline approaches, remember that the quality of your customer data is paramount. We at The Tracing Group specialise in enhancing data quality and locating gone away customers. Partner with us to ensure your data is accurate, compliant, and ready to meet the demands of the new regulations. Act now to safeguard your firm’s reputation and prepare for a future where every customer is valued and connected.
Contact us today to learn more about our services and how we can assist you in this crucial time.