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.
- Product management technology
It 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, centralized 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.
- A ‘Machine Line of Defense’
A machine line of defense 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 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.
- 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. The 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, modernize support and most importantly, enhance your customer experience. This feature is important to Consumer Duty compliance as it helps deliver a differentiated and more informed customer experience and helps eliminate sludge practices.
- 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 categorize 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.
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.