Financial services firms are making progress, but there's still some way to go to meet the FSA's Treating Customers Fairly criteria.
The Financial Services Authority has outlined an assessment criteria for financial services firms to help ensure they treat their customers fairly. Customer insight is a growing concern, especially in the financial services sector where transparency and accountability have never been so crucial. But a survey by Clearconcepts shows encouraging results; it shows that leading retail finance firms in the UK are making good progress - although there is still some way to go. The study, entitled Complaints MI: Evidencing TCF was conducted on behalf of the Financial Services Discussion Club.
Client Insight: Crucial
The results of the report underlines the importance customer complaints play in shaping a company's standard TCF (Treating Customers Fairly) management information (MI) process. It showed that complaints are used to influence product design and improve information sent by financial sectors to their customers. Customer insight is a powerful thing. In the survey the financial companies were questioned about their progress when it came to collating evidence for compliance with the six FSA's TCF outcomes: clear information for customers, transparent corporate culture, adequate product design, suitable advice, post-sale difficulties and meeting expectations.
Improving the Customer Experience
The research found that the complaints data collated and analysed by firms reveals process improvements in over three-quarters of the FSA's TCF outcomes. Additionally, the leading companies questioned for the report were found to be making good progress in reducing post-sale problems or barriers for clients making complaints, making it easier for them to switch products or services providers.
Customer Insight and the FSA's TCF Criteria
Customer insight has always been central to improving customer service. And tackling customer complaints is a vital source for crucial management information. Harnessing this information can help inform strategies to drive business improvements. Commenting on customer insight, Paul Elswood, the vice president for CDC Respond said: “It is encouraging to see the financial services market embracing this approach to meet the stringent demands of the FSA’s TCF initiative.”
The study was felt to show positive developments towards meeting the FSA's TCF assessment criteria. So, whether you are using marketing pop up banners or anything else, you should know how you stand against regulations.