5 technologies to help firms comply with Consumer Duty

Written on
byChisimdi Nzotta
Image by rawpixel.com on Freepik

The Consumer Duty final guidance comes with big requirements for evidence. Firms will need to deploy advanced data-driven technology solutions to meet the regulator’s data-focused demands, ultimately adapting their approach and processes in order to comply.


As well as regulatory compliance, applying the right technology has the additional benefit of making business processes more efficient and driving team productivity which will be sorely needed given the projected costs of implementing the Duty. According to Raconteur, “Price increases might be necessary to cover the costs of implementing the duty. The FCA estimated the one-off direct costs at up to £2.4bn and ongoing annual direct costs ranging from £74m to £176.2m.”


So what are the technology solutions firms should be considering?  Here’s our top 5 round-up for you:


  1. Product management technology 


Kore provides a digital product governance solution specifically for the financial services industry. Its technology helps firms effectively create, manage and monitor financial products within an ever-changing regulatory environment. It provides a single, centralised point of entry for process overviews, data-sourcing and team connectivity. Through its platform, Kore enables all departments to have complete oversight of the product life cycle, making it easier  to manage and access important information, collaborate with colleagues and be up to date with any progress or product event. 


Importantly, from a Consumer Duty standpoint, it allows you to provide evidence that you’ve followed regulatory processes and fulfilled governance responsibilities throughout the entire product lifecycle, from idea generation to retirement. 


2.  A ‘Machine Line of Defence’


Accessing and monitoring all of your customer interactions is vital in gaining oversight, and delivering good outcomes in line with the FCA’s regulations. Aveni’s AI platform, Aveni Detect, is designed as a machine line of defence, supporting the three lines of defence, boosting efficiency across business functions, enabling deeper data insights and risk oversight.


A machine line of defence can help firms automate the QA process by capturing all your customer interactions, assessing and flagging the highest risk interactions to assessors for faster remedial action. This targeted insight drives greater levels of efficiency and provides a true understanding of your customers and their outcomes. 

Another advantage of this technology for firms is that the FCA’s guidance of The Fair Treatment of Vulnerable Customers is embedded in the platform. This helps you accurately identify vulnerabilities, better understand consumer needs and how they change over time as well as up-skill agents improving customer service experience.


3. Digital Customer Service 


Good consumer outcomes are at the heart of Consumer Duty and technology that improves customer experience plays an important role in achieving those outcomes.


Glia’s platform combines the human touch with technology to power conversations with customers, creating better experiences. With this technology, you’ll be able to improve customer acquisition, modernise support and most importantly, enhance your customer experience. Glia enables companies to better support their customers by injecting more context into the conversation. Through live observation and CoBrowsing, agents also are able to see the issues customers are dealing with in real-time – allowing them to provide more personalised service and efficient resolution.


This feature is important to Consumer Duty compliance as it helps deliver a differentiated and more informed customer experience and help eliminate sludge practices. 


4. Database technology 


Data on Demand uses a ID.VU data solution that enables firms to identify financially vulnerable customers. The goal is to create positive outcomes and comply with regulatory requirements, thoroughly aligning with Consumer Duty objectives.


Adopters of this solution can discover customers who are at the risk of harm by appending the ID.VU flags to categorise vulnerability types. This deepens customer understanding and helps firms better identify customer needs and how best to deliver a good outcome.  Data on Demand’s technology enables companies to discover and manage credit risk, avoid over-indebtedness, support customers at high risk of harm and meet the Consumer Duty fair treatment requirement.


5. Customer onboarding and protection


Trunarrative’s technology offers solutions that enable firms to control risk by mitigating against financial crime and keeping customers safe. It’s a single unified platform where you can onboard high customer volumes, verify them, monitor transactions and track risks. 


This technology aids management and configures all financial life cycle journeys.  Trunarrative’s solution runs automated verification checks when onboarding new clients remotely. This automation check minimises friction, reduces exposure to fraud risk and provides evidential proof for compliance.


The Consumer Duty calls for a high level of consumer protection in retail financial markets. It also supports more agile and assertive supervision, expecting firms to focus on preventing harm before it occurs. This type of technology can help mitigate against financial crime and work to keep customers safe.


Consumer Duty marks a clear shift to data-first supervision by the FCA. It will no longer be feasible to stick to old approaches or rely on indefinite human resources. To comply, firms have to adopt advanced technology solutions to crucial areas of their business and with the deadline for board agreement on Consumer Duty implementation looming- October 2022 – the time to act is now. 


Join our panel of former FCA leaders, Nicola Anderson, CEO FinTech Scotland, and Alison Gay, Consultant at the lang cat, as they discuss with the Head of the Audit and Risk Committee at Quilter Investment Platform, John Gill, and Aveni’s CEO, Joseph Twigg, what they believe a data-driven regulator will expect from you.  Register for free here!

Other recent posts

Is Consumer Duty just another TCF thing?

Is Consumer Duty just another TCF thing?

As the industry and analysts continue to pick apart the FCA’s final guidance on Consumer Duty, there are some skeptics wondering whether the new rules genuinely mark a shift in the regulator’s approach to...

[Cybernews Interview]: Enhancing business operations with AI solutions

[Cybernews Interview]: Enhancing business operations with AI solutions

Natural Language Processing (NLP) is a field in artificial intelligence that enables machines to understand, process and analyse natural language in a similar way that humans do. As NLP becomes one of the most...

How low-resource Natural Language Processing is making Speech Analytics accessible to industry

How low-resource Natural Language Processing is making Speech Analytics accessible to industry

Natural Language Processing (NLP) is a subset of artificial intelligence that enables machines to understand, process and analyse natural language in the way that humans will. The machine analyses data, interprets, measures sentiment and...

Aveni Detect platform to revolutionise approach to Risk Assurance as Consumer Duty rules launched

Aveni Detect platform to revolutionise approach to Risk Assurance as Consumer Duty rules launched

We’re helping financial services firms meet new Consumer Duty regulations with our game-changing Aveni Detect product. Our AI platform uses the latest advances in Natural Language Processing (NLP) to monitor every customer interaction to...

How your business can reduce costs in a high inflation environment

How your business can reduce costs in a high inflation environment

Global inflation rates have been consistently on the rise over the past year. The high inflation is driven by high energy prices, issues in supply chains and an increase in consumer demand. While focus...

A woman sitting cross-legged thinking about her credit score which an indicator shows to be poor

5 crucial areas to improve to be Consumer Duty compliant

With the cost of living crisis pushing more and more people into financial vulnerability, the FCA is putting renewed pressure on lenders to provide the best possible service and support for their customers. Their...

Why a ‘Machine Line of Defence’ is critical to meeting the FCA’s Consumer Duty

Why a 'Machine Line of Defence' is critical to meeting the FCA's Consumer Duty

The FCA is constantly reminding lenders of the standards of the consumer duty of care as the cost of living keeps rising. Over the past six months, the rising cost of living has rarely been...

How Consumer Duty has made Speech Analytics Essential

How Consumer Duty has made Speech Analytics Essential

Speech analytics has been commonly used for a number of years, evolving from a novelty add-on to a powerful solution for businesses to improve their processes. With the Financial Conduct Authority’s Consumer Duty of...

Forging a fairer way forward after the FCA’s ‘Dear CEO’ letter to Retail Lenders

Forging a fairer way forward after the FCA’s ‘Dear CEO’ letter to Retail Lenders

The rising cost of living has led to lending firms facing an increasing number of vulnerable customers, as more borrowers struggle with their personal finance. Consumers are experiencing growing financial pressure leading to a...