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Consumer Duty

The FCA’s new Consumer Duty represents a paradigm shift in expectations in the treatment of retail customers across the whole of the Financial Services sector.

From our work to date with clients and engagement with the FCA we understand the complexity and challenges faced by firms as they not only demonstrate compliance but achieve the shift to a more proactive focus to deliver good customer outcomes and by identifying and preventing foreseeable harm before it can crystallise. Compliance with Consumer Duty is not a finite exercise, and firms will need to evolve and keep evolving their approach to product design, pricing, communications and serving and embed this in their ways of working, from the front line all the way through the organisation to the Board.At Deloitte, we have an experienced team covering the different sectors across range of disciplines including Conduct Risk (including former Conduct Regulators), regulatory change management, Internal Audit, analytics coupled with strong credentials, case studies and technology. We would be delighted to support you with your Consumer Duty programmes and beyond.

 

ConductHub: Conduct Risk Analytics- Transcrpt

 

In today's world interactions are becoming increasingly digital. However as voice and in-person interactions decline, the traditional indicators that are used to spot customer and conduct risk are becoming obsolete. The need to protect customers and ensure good outcomes in the digital era is greater than ever and regulatory expectation is increasing with the FCA's Consumer Duty.

ConductHub is our conduct risk analytics toolkit that combines our regulatory expertise with big data analytics and AI. It can be customised to fit any digital journey and identify customers at risk of an unfair outcome.

With ConductHub we can help you calculate the risk of every interaction and automatically trigger mitigating controls in real time. The reporting suite can provide a clear picture of your overall conduct risk and the effectiveness of your digital controls.

Let's look at Alex, who is applying for an unsecured loan on his smartphone. He logs in then quickly flows through the journey to secure a loan. Now let's see what insight ConductHub could bring.

Using ConductHub, we extract the little details about your customer's behaviour and blend them with other sources of data such as transactions, device information and call center history. This way we can see that Alex was recently declined two loans and had also been reading the online FAQ about support for financial difficulty. His average outgoings increased despite no change to his income and the loan amount he applied for was larger than most customers in his cohort. He also moved through the loan journey a lot more quickly than the average user and spent no time reading the legal information.

We can help you identify scenarios like this across your customer base and take it a step further by building real-time interventions into your digital journeys. This will help you better support customers like Alex to reach good outcomes.

ConductHub: let us change the way you manage digital conduct risk and meet your consumer duty obligations.

ConductHub: Conduct Risk Analytics

How do you take a data-driven approach to ensuring good customer outcomes across millions of digital interactions?

ConductHub is our conduct risk analytics toolkit that combines our regulatory expertise with big data analytics and AI. We can help you calculate the risk of every customer interaction, trigger preventative digital controls, and report on the overall conduct risk of your customer base.

Cross-sector insights

Wealth and asset management