The Consumer Duty Opportunity - Enhance your reputation and deliver more meaningful customer engagements - CGI.com
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The Consumer Duty Opportunity Enhance your reputation and deliver more meaningful customer engagements
Navigating the FCA’s new
Consumer Duty
From 31 July 2023, retail financial
institutions will need to show they
are compliant with the Financial
Conduct Authority’s (FCA)
new Consumer Duty principle,
meaning they need to show that
they are working to ensure that
good outcomes for consumers
are central to their firm’s culture,
strategy and business objectives.
The aim of the new regulation is to improve the
standard of customer care and protection, and
enable consumers to make effective decisions
about purchasing financial products that are
suitable for them.
Being driven to review so many aspects of the
business within tight timescales brings pressure
for any organisation. By approaching this as an Consumer Duty is much
opportunity to accomplish the often hard-to-do
stuff, companies could be getting closer to more than a tick box
becoming a ‘fit for the future’ organisation.
We offer combined technical and sector expertise
exercise and in fact, it
to help firms deliver required changes. We
build cost-effective solutions that help support
presents the opportunity
compliance while delivering personalised services
that protect consumers and enable firms to elevate
for firms to deepen the
the customer experience. relationship they have
with their customers—
thousands of whom will
be adversely affected by
the cost-of-living crisis.
2
The new policy is comprised of a Consumer Principle defining overall
standards, three cross-cutting rules defining an expected structure of
behaviours, and four outcomes that all consumers should expect:
Consumer principles Cross-cutting rules Four outcomes for the
key elements of the firm-
consumer relationship
A firm must act to deliver Firms must take all reasonable 1. Products and services
good outcomes for retail steps to: 2. Price and value
customers. • Avoid causing foreseeable 3. Consumer understanding
harm 4. Consumer support
• Enable customers to
pursue their financial
objective
• Consumer support
1 2 3 4 5
27 July 2022 31 October 2022 30 April 2023 31 July 2023 31 July 2024
Final rules Firms agree on Manufacturers Rules start for Rules start for
and guidance implementation complete reviews open product closed product
published plans to meet the and services and services
outcome rules
Key FCA milestones: the timeline for compliance is challenging for many firms
3
What does this mean in
practice?
The extensive FCA regulations Upping the level of service based on superior insight
and improving how they respond to customers in need
require firms to review their of support will be a positive move in the end, helping
products, communications, to strengthen brand loyalty and increase customer
end-to-end customer journey satisfaction.
and consider changes in areas, Some companies may feel confident that the necessary
including governance and systems and processes are already more or less
in place. Others may require a review of current
accountability, management operations and a timetable for business change
information and reporting, following a gap analysis and for others, a wholesale
product design, pricing, transformation programme, particularly for larger
distribution, servicing, and staff businesses with legacy systems, will be needed.
training—all within a challenging
implementation timeframe.
4
How can we help?
We can match the FCA’s We combine advanced analytics, deep financial
services and systems integration expertise, with an
requirements with clear operational industry-leading experience automation practice to
benefits that will be gained from deliver the insights, systems and processes you need,
an investment in digital technology to over-deliver on the Consumer Duty requirements
while decreasing cost to serve.
and prescribe how organisations
can best accelerate the upgrade Now is the time to accelerate your regulatory
compliance using the technical and advisory
from expensive and inefficient solutions needed to deliver all aspects of the new
legacy systems. Consumer Duty.
Build on the opportunity compliance brings
What are the challenges?
Multiple customer All customers Fragemented Siloed data Over-burdened Lack of visibility
journeys across treated the same customer without workforce on issues or
siloed systems regardless of experience and enrichment operating across outcomes until
need poor engagement multiple systems problems occur
What are the opportunities?
Omnichannel Individual Customer Deeper data Workforce Governance and
approach application experience insights management accountability
Key CGI capabilities
Advisory Programme Customer and Advanced data
services delivery employee experience analytics
• Implementation • Change management • Human-centred design • Advanced analytics
readiness and gap • Business process • Conversational AI advisory
analysis transformation • Customer relationship • Data integration
• Enterprise information • Resource augmentation management services
landscape analysis • Project management • Collection and • Data management and
• Contact centre vulnerability ‘Data as a Service’
advisory management • Management
• Cybersecurity information (MI)
assessment reporting and
monitoring
• AI-supported risk
management
5
Advisory Services
The new Consumer Duty is
comprehensive and it necessitates
an assessment of your customer
journey, operations and technology
to guarantee that behaviour is in line
with the act, and that information
is collected and researched to
guarantee ‘fair outcomes’ for the
customer at every stage. Our
advisory services are available to
help you evaluate, modify, and
adjust to comply with the new
mandates.
Services: Benefits:
• Implementation readiness and technology focused • Business and technical analyst expertise from the
gap analysis financial services sector
• Enterprise information landscape analysis • Acceleration of outputs through proven
methodologies
• Contact centre advisory
• Recommendations for remediation or enhancement
• Cybersecurity assessment
from technical experts
• Customer journey mapping
• Enhanced services that deliver better outcomes at
• System and technical architecture advisory lower cost
• Customer communications analysis
• Conversational AI advisory and managed service
6
Programme delivery
Operating a Consumer Duty
programme requires input and
oversight across the entire
organisation, and beyond. It’s
a large scale, enterprise-wide
change management programme
being undertaken in live business
operations.
We recognise that a project of this size comes with
its challenges in terms of governance, resourcing
and managing cultural barriers across the business.
Trusted to do complex things well across industries, our
change management team is on hand ready to ensure
your programme runs smoothly.
Services: Benefits:
• Programme management • Proven ability to achieve change success at scale
• Change management • Cultural view of change
• Business process transformation • Deep industry expertise
• Project management • Global expertise with local presence
• Resource augmentation
7
Customer and employee
experience
Fulfilling the requirements of the duty will require a sea Conversational AI platforms can act as a central
change in customer experience and personalisation, interface delivering on insights across channels.
while imposing important changes to obligations and Providing round-the-clock support, it can be
behaviours on existing staff and partners. The right dynamically scaled to handle peaks and troughs
technology ensures seamless customer interactions in demand. Importantly it also enables proactive,
— from the first contact through to enquiry resolution outbound support to mitigate risk and help get
and beyond. Our expertise in providing innovative customers back on track quickly or even help prevent
customer and employee experience solutions such them falling behind in the first place.
as Conversational AI, CRM, and Collections brings
Systems are updated in real-time, and workflows can
together a set of technologies designed to be fit for the
be refined to reflect data-driven decisioning. Drawing
future.
on databases from across the entire organisation,
Conversational AI is a form of interactions are personalised for individual users with
differing needs and situations.
automation that delivers meaningful
customer engagements while By working across silos, Conversational AI allows
processes to be reimagined in ways that speed up
supporting staff through change, resolution and reduce cost to serve. It supports staff
extending platform capabilities, and up front and behind the scenes, automating repetitive
enhancing services. tasks, surfacing relevant information, providing
suggestions for courses of action. This minimises time
required of agents to service customers as well as staff
training time.
Services: Benefits:
• Human-centred design • Omnichannel approach
• Unify your communications landscape • Easy to audit, provision of a clear evidential trail
• Extend and scale personalised support, including • Support for diversity and identification of vulnerability
channel switching
• Ensure consistency of experience
• Provide proactive guidance to customers and
• Visibility of decisions
employees
• Data-based improvements
8
Customer relationship
management (CRM) is an essential
hub for organising and making
sense of valuable customer data
and insights that are now needed.
Understanding the data you hold
about your customers is key to being
able to provide financial services that
suit their needs.
By supporting customer operations with centralised
data and workflows and adding sales and marketing
suites that allow you to test products and gain real
insights into customer demand, our CRM solutions
team can help you get the best out of a single
customer view across your organisation.
Services: Benefits:
• CRM design and deployment • Provides human-centered design approach
• CRM strategic advisory • Centralises and unifies customer data
• Customer operations experts with deep industry • Enhances auditability and provision of clear,
expertise evidential trail
• Technical MS Dynamics and Salesforce expertise to • Reduces legacy, ‘sticking plaster’ solutions
support app development and configuration
• Simplifies customer data landscape and enhances
• Data Science and Insights Advisory the ability to comply with data privacy and
cybersecurity requirements
9
Collections and vulnerability
management processes need to
be robust and the way you support
customers in difficult situations
must be even more consistent and
auditable.
We take a customer-centric approach to collections
and recoveries, and our four decades of experience
enables us to work collaboratively with you to ensure
that all activities are aimed at maximising the efficiency
of your operations.
Our end-to-end CACS X credit solution and expertise
can help maximise operational effectiveness whilst
providing best practice processes within the regulatory
framework.
Services: Benefits:
• Omnichannel real-time self-service functionality • Eases the burden of legacy systems by
simplifying and modernising the infrastructure
• Modular implementation approach delivers value
fast • Adapts to market demands, easily handling
increased volumes
• Pre-configured workflows
• Provides a hyper-personalised customer
• Embedded decision engine, machine learning
experience
algorithms
• Enables compliance with regulatory requirements
• 24x7 event-driven, cloud-native solution
• Significantly reduces operational costs
• Open architecture
• Robust API to ensure fast, reliable data flow
10Advanced data analytics
The FCA has stated that it will
take a data-driven approach to
assessments of compliance and that
in turn means that there will be an
expectation that the service provider
will be able to provide that data to
them. This marks a step change in
both the need for access to the right
data to support decision making
and in the regulatory approach to
assessment. To ensure good customer outcomes, organisations
Our Data Fitness Assessment (DFA) offers require reliable and trusted data to build precise
organisations the opportunity to create a reliable data metrics. Our Insight Hub Accelerator provides
infrastructure to meet their data agendas. Based on assurance that the first layer of data processes is in
DAMA principles, our six-point approach accurately the best condition possible. This enables businesses
evaluates the maturity of data, from data access to how to use advanced analytics and build scalable analytics
and where data is presented and consumed. When solutions that are governed in a well-structured
it comes to Consumer Duty, the DFA can evaluate an way. Through the application of predictive models,
organisation’s existing data landscape and pinpoint organisations can proactively manage the risk of poor
areas that need to be modified or transformed. customer outcomes.
Services: Benefits:
• Advanced analytics advisory • Better data driven decision making
• Data integration services • Enables operational efficiency and improved
outcomes
• Data management and ‘Data as a Service’
• Improved transparency and auditability
• MI reporting and monitoring tools
• Enhanced MI and risk management
• AI supported risk management
• Ease of compliance with regulatory reporting and
• Data security services.
assessment
• Reassurance that data is safe and secure.
11Time is of the essence for Consumer Duty compliance. Contact us today to learn how to implement the best technology and turn this requirement into an opportunity for your organisation. To discuss how we can help your organisation please contact ciaran.hevey@cgi.com About CGI Insights you can act on Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. We are insights-driven and outcomes-based to help accelerate returns on your investments. Across 21 industry sectors in 400 locations worldwide, our 90,000 professionals provide comprehensive, scalable and sustainable IT and business consulting services that are informed globally and delivered locally. Learn more at cgi.com/uk
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