PwC comments on the Consumer Duty coming into force on 31 July 2023

PwC comments on the Consumer Duty coming into force on 31 July 2023 (for open financial products and services).

Andrea Wintermantel, Financial Services partner at PwC UK, comments:

“The Consumer Duty marks a fundamental step change in regulatory standards and expectations, requiring firms to put customers at the heart of what they do, and deliver good customer outcomes. 

“Consumers could see a noticeable difference in their interactions with firms from the 31 July deadline - this is likely to include better value products, easier to understand and more proactive communications, and improved customer service. 

“Despite the changes firms have made, challenges remain in achieving good outcomes for consumers, particularly in the current economic situation. For instance, the FCA’s recent financial lives survey data shows customers continue to experience challenges with customer service and communications - and that these difficulties are amplified for customers with characteristics of vulnerability. 

“Firms will need to continue to focus on improvements beyond the 31 July deadline. This deadline is a staging post in an ongoing journey, and firms need to focus on embedding the Duty throughout their organisation and culture. This is an opportunity to differentiate their customer offering, enhance customer loyalty, and improve their ongoing monitoring of customer outcomes. This monitoring should enable firms to quickly spot any poor customer outcomes or risk of harm, and address any issues at an early stage. Getting this right should be critical to organisations’ core purpose and strategy as it centres customers and their outcomes. The Duty was ultimately designed to boost competition, inspire customer loyalty, increase trust and reduce the risk of poor outcomes - and only time will tell as to whether it will achieve these aims.”

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