How do financial services firms meet the FCA’s looming Consumer Duty regulations
Financial education expert, Claro Wellbeing, is helping financial services firms comply with the Financial Conduct Authority’s (FCA) new Consumer Duty regulations, as the deadline closes in.
Following fresh warnings of swift and proportionate enforcement and robust action from the FCA, for organisations that do not meet the terms of its new Consumer Duty, Claro Wellbeing’s Galina Barengo, Head of Partnerships and Chief of Staff, says: “Financial education of consumers is paramount to their financial wellbeing. Too many people weren’t taught about personal finance growing up which means they do not have the knowledge and confidence to effectively manage their money in their adult life. This not only has a significant impact on their financial lives but also on their work, relationships, and mental health.
“Until now financial institutions have only had an ethical responsibility to do more to support the financial education and literacy of their consumers. But from July 31st, it is now an FCA regulatory requirement and proactive action is required to make sure financial services companies meet the terms set out by the financial regulator.
“By offering engaging and interactive financial content financial services companies can meet their obligations. Financial services firms should think about engaging ways they can support their customers and increase their understanding of the products they offer. Content such as financial health check quizzes, educational videos, budgeting tools and calculators, and 1-2-1 financial coaching, all boost the understanding, and ultimately the protection of the consumer. There are less than three months to introduce these measures, so partnering with a financial education expert that can provide this content and support quickly is a good idea.
“At Claro Wellbeing, we are committed to making a positive impact on the financial wellbeing of individuals, and we strongly encourage other financial firms to join us in this mission by prioritising the financial education and literacy of their customers. Together, we can empower consumers to take control of their finances and achieve better financial outcomes.”
Claro Wellbeing’s partnerships promise to boost customer engagement and improve the end users’ understanding of financial products. Research shows an intrinsic link between financial literacy and the uptake of financial products, such as savings, investments, and pensions.
Visit: www.clarowellbeing.com
