The Financial Conduct Authority’s new Consumer Duty is all about delivering good outcomes for customers. Here’s how Algbra’s implementing it.
Here at Algbra, we’re obsessed with providing exceptional customer service and experience. So the Financial Conduct Authority’s (FCA) Consumer Duty is another opportunity for us to double down on what we do best.
What is the Consumer Duty?
The Consumer Duty is a new FCA requirement that’s coming in on 31 July 2023. It means FCA-regulated firms (like us) need to deliver ‘good outcomes’ for our customers. We already aim to do that – but the FCA has also set out lots of rules on what companies should do to comply with its Consumer Duty. This is a great chance for us to look at how we do things and how we can improve even more.
What are Algbra’s 7 principles for the Consumer Duty?
We have 7 principles for how to apply the Consumer Duty.
- Better than good. We want to provide outstanding outcomes for our customers: The Consumer Duty requires us to deliver “good outcomes” for our customers. We can do better than that, though. We want to provide outstanding outcomes for our customers. So we’re going beyond the minimum requirements of the Consumer Duty wherever possible.
- Prioritising what will make the most difference: We want to make sure that we focus on what matters most for consumers. That means we’re focussing on where the greatest risks and greatest potential benefits are for consumers.
- Practical steps that will have real outcomes: We want to make sure our implementation of the Consumer Duty has real outcomes for our customers. That means we’re focusing on practical steps that will make a real difference to our customers.
- Making improvements as soon as possible: If it’s clear an enhancement makes sense, we’re not going to wait around. We’ll implement improvements as soon as possible.
- Engaging all consumer-impacting functions: From customer operations to marketing and finance – lots of our business areas impact our customer’s experience. So that’s why the whole company is working together to implement the Consumer Duty.
- Ensuring all requirements are met: After reviewing implementation plans, the FCA thinks ‘firms may have considered the requirements superficially’. We’re doing a line-by-line review of the FCA’s rules and tracking how we comply with them.
- Working closely with our partners: To provide our customers with services, we work with lots of partners. And we’re working with each of them to make sure we have the most comprehensive approach to the Consumer Duty possible.
The Consumer Duty is a big change in the FCA’s approach to regulation. It’s an opportunity for us to do what we do best, but even better.
