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Operational Areas Transforming Under the New Consumer Duty

(London, UK) The Financial Conduct Authority’s (FCA’s) New Consumer Duty went into full effect on the 31st of July 2023. Auriemma  Industry Roundtable members have been eager to collaborate with one another on how the regulation could affect each operational area and on what changes they are prioritising. At each meeting this year, roundtable members shared department-specific plans for tackling Consumer Duty as well as greater, overall objectives.

Collections and Recoveries Roundtable members are aligned in their focus on ensuring their forbearance toolkits are fit for purpose – with 23% of members introducing new forbearance options for struggling customers. Additionally, 54% of members indicated an intent to make changes to their supplier-oversight strategies—another focus area of the regulation.

“Our Customer Service members are hyper focused on communication structure and readability,” says Louis Stevens, Auriemma Industry Roundtables Director, “They are reviewing their entire communications catalogue and leveraging external partners to ensure verbiage meets the average UK reading and numerology levels.” To further ensure comprehension, many are also utilising customer research groups.

Complaints and Disputes departments alike are improving the customer experience around submitting a complaint/claim. They have increased the number of touchpoints to keep customers updated on the progress of their claim, with 15% of roundtable members intending to introduce text message updates as part of their journeys. As with Customer Service teams, 46% also intends to change their communication content, especially with complaints.

Fraud Control Roundtable members are pivoting to track more outcomes-based metrics and building new reporting structures around them. Many members have also recognised the need for Fraud Departments to become more involved in the vulnerable customer journey given that vulnerable customers are often targeted victims of fraud.

When looking at Operations as a whole, roundtable members have common themes within their plans. At the recent Auriemma Consumer Duty Workshop, 92% of members indicated they intend to run new training plans under Consumer Duty with the goal of building awareness amongst the department and delivering pinpointed training on how the regulation will affect individual roles. Outcome testing is a primary focus for many with 70% of firms already having had outcome testing frameworks in place, and the remaining 30% having planned to implement it in the months leading up to the deadline.

“Although it is crucial that the industry makes specific changes to comply with the New Consumer Duty, we must not forget that the intention of this regulation is to trigger a cultural change not just act as a tick-box exercise,” says Stevens. “This is not just a cultural change at the company level either, but rather across the industry as a whole. Collaboration amongst firms is crucial not only to comply with the regulation but to ensure the best possible outcomes for customers.”

To assist in this change, Auriemma is excited to announce its newly launched Regulatory Compliance Roundtable, with the pilot meeting specifically covering Consumer Duty. The agenda will be participant-led but will likely cover early learnings post the go-live date, planned future changes, internal governance structures, third-party oversight models, MI & reporting usage and more.

“We’re really excited for this new group and the enthusiasm we’re already seeing behind it,” says Stevens. “We hope that the group can become an extension of firms’ Consumer Duty teams and help shape the future of how this regulation is successfully implemented within the industry.”

The meeting is scheduled for the 18th of October at the St. Pancras Renaissance Hotel in London. If you or any of your colleagues are interested in attending as our guests, please contact us via roundtables@auriemma.group.

About Auriemma Group

For more than 35 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or contact Louis Stevens at louis.stevens@auriemma.group.

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Dr. Stephanie Fitzgerald Visits UK Roundtables to Discuss Burnout

On the 7th of July we had the pleasure of having Dr. Stephanie Fitzgerald join us at the Collections and Recoveries Roundtable meeting in London to discuss best practices for preventing and managing burnout.

Since the pandemic, burnout has become particularly challenging for Collections front-line agents given the challenging conversations they have whilst working from home. Dr. Fitzgerald provided the group with practical techniques to use on their own teams to prevent burnout and build a healthier working culture.

Dr. Fitzgerald will also be joining us at the upcoming Customer Service and Complaints Roundtable meeting on the 15th and 16th of November in Birmingham. If you are interested in joining for the event, please reach out to roundtables@auriemma.group, or you can purchase a copy of her upcoming book “Reworked” on Amazon.

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3 Ways Banks Are Implementing Hybrid Working Models

(London, UK) Widespread work-from-home started as an adaptation to COVID-19 but is here to stay. In Auriemma Group’s recent roundtable meetings financial institutions discussed long-term working models, all of which include some element of working from home. Their next challenge is developing a hybrid engagement model for their hybrid workforce.

Some have already taken then leap, and since implementing these hybrid models, Auriemma’s roundtable members received employee feedback that some feel less engaged and connected with the company. This, in conjunction with high attrition rates and challenging recruitment, means engagement strategies have become an area of focus.

Those who feel they have developed strong hybrid engagement models have focused on three areas: intentional scheduling, variety of choices and well-being considerations.

Intentional Scheduling

Firms strategically schedule location-appropriate activities when employees are onsite or working remotely. When onsite, firms try to have full teams concurrently present to build comradery and schedule more team-building activities like catered lunches and happy hours. When remote, roundtable members manage engagement via gamification and weekly competitions like step counts and quizzes.

“When managing a hybrid workforce, it is crucial that firms give equal treatment to employees regardless of on-or-offsite work,” says Louis Stevens, Director of Roundtables at Auriemma Group. “Otherwise, this can create a divide in the workforce and even lead to further attrition. Engagement models must cater to both demographics.”

Variety of Choices

Workforces are composed of a diverse mix of people with a diverse set of interests, which can make it challenging to find engagement activities that appeal to everyone. The solution? Including variety in the engagement offerings.

According to members, offerings should cater to both extroverts and introverts alike. One firm developed a successful monthly engagement programme for its employees, which allowed them to choose from a variety of activities like cocktail making classes and sporting events.

Well-Being Considerations

As part of their engagement strategies, financial institutions have incorporated well-being initiatives to protect the mental health of their employees. Initiatives vary from providing access to therapists to scheduling inspirational speakers and allotting weekly personal time in schedules.

30% of Auriemma Customer Service and Complaints Roundtable members have intentionally increased off-phone time for front-line agents since the start of the pandemic as a means of dedicating more time to employee well-being. Employees have the choice to use this time as they wish whether that be for professional development or something like meditation or yoga. Since implementing, firms have seen an improvement in productivity levels.

Auriemma’s roundtable members are still developing their engagement strategies. New developments and learnings will be discussed in depth at the upcoming Collections and Recoveries Roundtable meeting on the 9th and 10th of June in Edinburgh, as well at the Customer Service and Complaints Roundtable meeting on the 16th and 17th of June, also in Edinburgh.

About Auriemma Group

For more than 35 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or call Louis Stevens at +44 (0) 207 629 0075.

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