Customer Outcomes

In the context of the Financial Conduct Authority’s (FCA) Consumer Duty regulation, customer outcomes refer to the impacts that financial products and services have on customers. These impacts can be both positive and negative and can range from financial gains to losses, and from improved well-being to reduced well-being.

For example, if a customer takes out a loan to purchase a car, a positive outcome would be that the customer is able to buy the car, this improves their ability to travel to work and access education and other opportunities. A negative outcome could be if the customer struggles to make loan payments, and ends up defaulting, which could lead to financial losses, impact their credit score and affect their well-being.

Outcomes are important because they help regulators and firms to understand the impact of financial products and services on customers and to identify any potential risks or harms. By focusing on outcomes, firms can take steps to improve the products and services they offer, and to mitigate any negative impacts they may have on customers.