How Wealth Managers Can Use Tech to Navigate Consumer Duty

Description

In this episode of Seismic Sessions, hosts Gemma Livermore and Rachael Rowe are joined by industry experts Anthony Scammell, Adviser and Client Services Director at Quilter, and Thomas Howard, Group Senior Lawyer at Vanquis Bank. They discuss the FCA’s new Consumer Duty and the impact it will have on Financial Services. The conversation explores the benefits of the new standard from a customer perspective and practical steps that firms can take to implement it, including how wealth managers can utilise technology to aid in their compliance of the Duty and ensure wider business growth. 

Show Notes

Tremors:  

While pre-existing FCA principles required a focus on customer needs and customer fairness, there was an inconsistent approach in how firms applied these principles. Results of an FCA survey revealed a lack of public confidence in Financial Services firms and triggered a prioritisation of Consumer Duty by the FCA to enforce higher standards. 

Epicentre: 

The implementation of the new Consumer Duty standard signifies a shift toward a more customer-centric approach, focusing on fair outcomes for clients, clear communication methods, and client empowerment, underpinned by transparency and evidence. Wealth managers are starting to prioritise the designing and delivering of products, services, and information with customer needs at the forefront. That way, they can restore trust and confidence, improve the client experience, and compete more effectively. As part of this effort, firms are looking at how they can utilise technology across the business to enable their success. 

Aftershocks:  

Wealth managers need to implement strategies that break down silos between departments in order to meet the new Consumer Duty requirements. The adoption of technology will be essential  to empower the entire customer-facing organisation, support go-to-market activities and ensure a seamless end-to-end customer journey. 

Jump into the conversation: 

[00:03:06] – The traditional approach to client care

[00:06:00] – The motivation behind Consumer Duty

[00:06:00] – Evolution vs. revolution in regulation

[00:10:43] –  Adapting to new Consumer Duty standards

[00:17:27] –  Improving the client experience

[00:25:09] – Breaking down silos with technology

[00:28:01] – The role of AI in wealth management

[00:30:47] – Key recommendations for wealth managers

[00:36:39] – Future implications of the Consumer Duty