Customers see little impact of FCA Consumer Duty one year on

24 July 2024

● The majority of consumers (84%) have seen no difference in service from financial providers since the implementation of the FCA’s Consumer Duty a year ago1
● Vulnerable customers want better access to human support
● Health insurers and pension providers receive the poorest reviews from customers2
● Smart Money People’s Your Money, Your Voice campaign is calling on consumers to leave more reviews of their providers

The majority (84%) of consumers report no improvement in how financial providers treat them following the implementation of the FCA’s Consumer Duty a year ago. As such, customers are being urged to leave reviews of their financial providers as part of the ‘Your Money, Your Voice’ campaign by Smart Money People, to encourage the industry to sit up and listen to what their customers need and want.

A new study conducted by Smart Money People, the UK’s most comprehensive financial services review site and data insights company, also reveals 7% of consumers report worsening levels of service in the past 12 months.

Consumers’ biggest frustrations are having no access to human support (48%), untrained staff (34%), no available phone number (32%) and an over-reliance on chatbots (24%). Despite these grievances, only 23% of customers have left a review for their provider in the past 12 months and only 35% said they have given feedback directly to their provider in the past five years, suggesting their negative experiences are not being recorded.

Personal loan and buy now, pay later customers were the least satisfied with the service they have received. Over-reliance on ‘live chats’ (30%) coupled with poor customer communications (28%) were the top reasons why consumers express dissatisfaction. An additional fifth (22%) of people had experienced unempathetic staff members too.

However, an analysis of Smart Money People’s platform data which holds over 2 million independent reviews shows health insurers received the lowest reviews, followed by pension providers. This analysis indicates that health insurance customers are more willing to review providers and loan customers are more hesitant about leaving reviews.

Prepaid account and current account customers are the happiest with their providers and this is echoed across the Smart Money People site with current accounts receiving the most positive reviews. The research found that efficient service (49%) and knowledgeable staff (33%) lead to the most satisfied customers.

Vulnerable customers

In the study of 2,000 consumers, a proportion self-reported on criteria which would consider them to be vulnerable by the FCA. These customers highlight access to ‘real people’ as the most important factor for their service experience. Notably 81% of these customers said they had seen no positive improvement in the way their financial services companies treat them in the past 12 months.

Jacqueline Dewey, CEO of Smart Money People commented: “The FCA’s Consumer Duty guidelines are specifically designed to put the onus of consumer communications and outcomes on the provider. However our data shows customers are not seeing the impact of these guidelines 12 months later. It’s particularly concerning that vulnerable customers have not seen an improvement in their experience during this time. This is why we are encouraging consumers to feedback on both good and bad experiences. Smart Money People works with financial services organisations to better understand and serve their customers, helping to drive better outcomes for both providers and their customers.”