Consumer Duty: From what, to how…
October 2022: Deadline for firms to have agreed their Consumer Duty implementation plans (now passed)
April 2023: Firms to have completed all the reviews necessary to meet the outcome rules for existing products
With the focus now shifting from the what, to the how of Consumer Duty, this short guide explains how to evidence good outcomes and avoid foreseeable harm by embedding Moneyhub’s Open Banking solutions in your customer journeys, consumer propositions and process flows.
1. Use our Transaction Categorisation Engine to monitor Customer Outcomes
Moneyhub’s Transaction Categorisation Engine powers our Consumer Duty solutions to show you what your customers really do with their money.
Our Open Banking end-point connections extract transaction data from your customers’ digital bank statements whilst our enrichment engine builds a picture of your customers using powerful machine learning.
Our models and matchers accurately and quickly identify financial counterparties, relationships and financial indicators.
Comply with: The monitoring of customer outcomes - the data you need to test, assess, understand and evidence good customer (not just product) outcomes.
Use cases: Identify vulnerability, suitability, affordability and eligibility, at point of sale and in real-time throughout the lifetime of your relationship with a customer.
2. Use Customer Dashboards to bolster Consumer Support operations
Transaction data can be consumed in either Dashboard, API or Widget form designed for a range of customer journeys and client budgets.
Comply with: The Consumer Support Outcome - help your customers realise the benefits of the products they hold and act in their own interests.
Use cases: Configure the data to work with manual or automated processes within numerous customer journeys:
Loan Affordability: Capture up-to-date, accurate and timely income & expenditure data to accept or decline edge cases, or offer borrowers in arrears sustainable payment plans to improve collection’s outcomes
Vulnerability: Identify the use of BNPL or high cost credit products, gaming turnover, or an unexpected fall in income to intervene early and offer support
Suitability: Financial Advisors can fact find with unprecedented accuracy. Build a holistic, unbiased picture of your client’s income, expenditure, assets and liabilities to power retirement modellers and suitability reports
Eligibility: Power evidence based ‘Point-in-Time’ assertion checks for income, benefits, rent recognition, bank account verification or source of funds
3. Meet the Product & Services outcome with our Data Lake & Data Explorer
Data Explorer is a custom built data visualisation tool designed for Open Banking, Open Finance and Open Data to bring your customers’ data to life.
Comply with: The Product & Services Outcome - the insight you need to design and distribute products and services to customers with defined needs, characteristics and objectives.
Use cases: Access aggregated and anonymised reports about cohorts and segments of your customers, their transaction data and their behaviours:
See your customers’ holdings of competitors’ products to understand share of wallet, cancellation & renewal rates, and pricing
Build propositions and processes to evidence fair value such as personalised, contextual quotes and product maturities, or suggest alternative products and offer easy switching or consolidation journeys
4. Use our Nudges and Nudge Library to meet the Consumer Understanding outcome
Relevant and personalised ‘Smart Nudge’ alerts and guidance help your customers make better financial decisions to improve their financial wellbeing. Choose from existing nudges or use data powered insights to create custom nudges.
Comply with: The Consumer Understanding Outcome - help your customers make effective decisions by giving them the right information, at the right time, in a format they understand.
Use cases: Our nudge hierarchy consists of Alert, Call to Action and Automated Action Nudges:
Alert Nudges: Alert customers before they go overdrawn, identify upcoming insurance renewal dates or tell users that their regular bills have increased, and by how much
Call to Action Nudges: Identify surplus funds and offer to sweep them to savings or to pay down debt. Forecast cashflow, identify a shortfall and offer to transfer funds in advance. Predict missed payments and offer an early referral to debt advice, or identify product purchases e.g., a new mobile phone and offer a relevant insurance
Notification of Automated Action: Automate the saving of surplus money towards a specific saving goal or sweep money from savings to avoid going overdrawn or missing a payment
Moneyhub gives you the tools you need to comply with the Consumer Duty AND deepen relationships with customers.
Worried about complying with the new regulations? Check out our Consumer Duty resources or get in touch to explore our solutions.
The FCA Consumer Duty: Business Burden or Golden Opportunity? Download the white paper →