, ,

Date Confirmed: Regulatory Compliance and Privacy Roundtable

After a very successful inaugural meeting and growing client demand, we’re excited to announce that we have finalised the date for our next Regulatory Compliance and Privacy Roundtable on the 28th of February in London.

During this session, we intend to continue to do a deep dive into how firms are implementing the New Consumer Duty into their business, and also intend to cover Operational Resiliency, PSD3, CCA Reform, Buy-Now-Pay-Later Regulation, Financial Inclusion and Access to Cash, and more.

The roundtable meeting will span over a day and a half and follow an agenda built exclusively from inputs from attendees. After the first day’s meeting, there will also be a group dinner, where attendees will have the opportunity to network amongst their peers.

If you or any of your colleagues are interested in joining this session, please reach out to Nicole Toussaint at nicole.toussaint@auriemma.group.

/by
, , ,

Wrapping Up Another Great Set of Roundtables

Last week concluded our autumn set of roundtables, where we had representation from 23 financial services firms.

As always, the roundtables consisted of ample networking opportunities and engaging discussions. Some highlights from the meetings were:

  • Our Fraud Control Roundtable did deep dives into application and social engineering fraud trends and mitigation techniques.
  • Stephanie Fitzgerald opened up the Customer Service and Complaints Roundtable meeting with a presentation on wellness in the workplace, which was a catalyst for an in-depth discussion on how the industry is currently supporting its employees.
  • The Collections and Recoveries Roundtable shared best practices for becoming more digital in both communication strategies as well as in the income and expenditure process.

Our next set of meetings will be in March 2024. If you’d like to get involved, please reach out to us via roundtables@auriemma.group.

/by
, , ,

Streamlining the Growing Complaints Problem

(London, UK) Financial services customer complaint volumes are set to increase amid the uncertain macroeconomic environment and customers’ growing awareness of potential complaint payouts. According to Auriemma Group’s latest Customer Service and Complaints Roundtable, approximately one-third of members have already reported increases in the last three months. This, coupled with customers’ growing desire to complain via voice, will require firms to invest in their complaints management strategies.

“The increase in complaints volume is a real threat to operational efficiency – quick wins will be hard to come by,” says Louis Stevens, Director of Industry Roundtables. “This will likely lead to increased call volumes, the need for further headcount, longer resolving timeframes, higher redress values, and a heightened reputational risk.”

Although customers are showing a growing preference to self-serve for most transaction types, Auriemma’s research found that filing a complaint is one of the few areas where preference for voice chat is growing (i.e., 30% of respondents preferring voice in Q2-23 up from 22% in Q2-21). However, while some consumers may prefer voice chat, the channel is more costly to service and can often be less efficient. Streamlining this channel is crucial for success.

“We’ve heard some great examples of how firms are tackling these trends in our roundtable network,” says Stevens. “Some are empowering front-line agents to resolve at the first point of contact, others are increasing the number of SMS updates they send customers to reduce repeat contact, and a few have implemented a front-line phone team to deescalate and categorise complaints, all of which have already led to noticeable efficiencies.”

Looking ahead, roundtable members have indicated an intention to improve their root-cause analysis processes, as they believe this can help mitigate these predicted volumes and help them to better serve customers.

This along with a wide variety of other complaints-focused topics are already on the agenda for the upcoming Customer Service and Complaints Roundtable meeting on the 15th and 16th of November in Birmingham. If you or any of your colleagues are interested in attending as our guests, please contact us via roundtables@auriemma.group.

Survey Methodology

Cardbeat UK

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma in July 2023, among 80o+ adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

About Auriemma Group

For nearly 40 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized 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 maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London. For more information, visit us at www.auriemma.group or contact Louis Stevens at louis.stevens@auriemma.group.

/by
, ,

Join Auriemma’s Inaugural Regulatory Compliance Roundtable Meeting on Consumer Duty

Consumer Duty is finally here, but how is the financial services industry approaching it?

Join us for our inaugural Regulatory Compliance Roundtable meeting on the 18th of October at the St. Pancras Renaissance Hotel London from 9:30 – 17:00 GMT.

The discussion will be primarily focused on the FCA’s New Consumer Duty Act; however, the group will be open to discussions on other regulatory areas (e.g., BiFD findings, ISO 20022 and early discussions on what the industry would want to see from PSD3).

Our meeting agendas are attendee sourced; however, we expect to cover:

  • Changes already made to processes and procedures
  • Early learnings post 31st July go-live date
  • Focus areas for future changes
  • Internal governance structures
  • Third-party oversight models
  • MI and reporting usage
  • Other regulatory areas of focus

If you or your colleagues are interested in attending, please contact nicole.toussaint@auriemma.group.

/by
, , ,

Announcing our Autumn 2023 Roundtable Schedule

Our autumn set of roundtable meetings are taking shape, and we would welcome you and your team to join us as our guest.

The dates for the upcoming meetings are:

  • Fraud Control Roundtable – 2nd and 3rd November – Manchester
  • Customer Service and Complaints Roundtable – 15th and 16th November – Birmingham
  • Collections and Recoveries Roundtable – 23rd and 24th November – Birmingham

Roundtable meetings provide a unique environment for the industry to openly discuss challenges, concerns, best practices, learnings and more, whilst networking amongst peers.

Agendas are entirely sourced from those who attend and prioritised accordingly, so you can be sure that the subjects currently pertinent to you are covered.

If you or your colleagues are interested in joining for any of the above sessions, please contact nicole.toussaint@auriemma.group.

/by
, , ,

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.

/by
, ,

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.

/by
, , , , ,

Consumers More Pessimistic About Financial Health as Cost-of-Living Crisis Intensifies

(London, UK): Consumer expectations for future financial stability is worsening, with many looking to credit cards for support during the cost-of-living crisis. According to Auriemma Group’s latest issue of Cardbeat UK, 37% of cardholders believe their financial health will worsen in the next 6 months.

Gen Z and younger Millennials express greater optimism about their future financial health than their older counterparts despite increased levels of borrowing. Auriemma’s research found that 20% of cardholders are borrowing more to afford everything they need, rising to 32% among Gen Z and Millennials, and 33% of sub- and near-prime customers. The added strain of rising costs will likely cause these figures grow in the coming months.

“Since the start of the pandemic we have seen a resurgence in consumer spending on debit cards and a rise in transfers from savings to current accounts,” says Jaclyn Holmes, Director of Auriemma Research. “Today it appears rising inflation is furthering the strain on consumers, leading some to rely on their credit cards for essential spending.”

According to Auriemma’s latest findings, over 90% of credit cardholders anticipate rising costs of food, housing, fuel or energy bills to impact their personal finances negatively over the next 12 months. While energy prices were capped at £2,500 for 2 years beginning this month, some households may still see their bills double.

“At a time when all other costs are skyrocketing, the price cap will offer little comfort for many households,” says Holmes. “With more monthly outgoings attributed to energy bills, the pressure on credit card usage and borrowing will likely be even higher.”

But consumers aren’t the only ones bracing for impact. Issuers are also trying to assess how the cost-of-living crisis is currently impacting their cardholders and anticipate the enduring impact moving forward.

“Lenders have already begun seeing the operational impact of this change in customer behaviour,” says Louis Stevens, Director of Auriemma’s Industry Roundtables. “This comes at a time where regulatory initiatives, such as The Consumer Duty Act, are already taking up considerable time and resources.”

As issuers likely tighten risk criteria for customers seeking credit, some may turn to Prime and affluent customers for lower-risk lending opportunities. Auriemma Group will continue to monitor this space closely in upcoming Cardbeat studies and within its Customer Service Roundtable groups.

Survey Methodology

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma from April-May 2022, among 80o+ adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

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 Jaclyn Holmes at +44 (0) 207 629 0075.

/by
, , , , ,

How Rising Cost of Living is Impacting Spend and Borrowing Habits

(London, UK): Rising costs for fuel, energy, food shops and housing are already impacting consumers around the UK, but many believe this is only the beginning. According to Auriemma Group’s latest issue of Cardbeat UK, 73% of credit cardholders expect the rising cost of living to have a negative impact on their personal finances over the next 12 months.

Others factors will further impact consumers, including the Bank of England’s forthcoming increased interest rates. Coupled with rises in the cost of living, these elements are set to put considerable strain on some UK cardholders.

“Rate increases will create added pressure on homeowners across the UK at a time of significant financial uncertainty,” says Jaclyn Holmes, Director of Research at Auriemma. “Meanwhile the volatility of the rental market is already putting a strain on those who do not own their own home.”

The rising costs of food, energy and fuel have impacted over eight-in-ten credit cardholders, and rising housing costs have impacted about six-in-ten. Auriemma’s research found that rising housing costs were of particular impact to Millennials, who more commonly rent—a cost that has increased 9.5% on average since 2021 according to the latest HomeLet Rental Index.

“These indicators are a sign that banks and lenders must ready themselves to provide additional support to struggling customers,” says Holmes. “When rising costs become insurmountable it often leads to cardholders making spending cuts, missing payments or even becoming delinquent.”

In fact, 67% of credit cardholders agree that they are already spending less on non-essential or luxury items due to the state of their finances. And four-in-ten say they are unable to afford a holiday, a figure that increases to 57% among sub-prime and near-prime customers.

“These changes in spending habits could have an impact on the retail, entertainment and travel sectors,” says Holmes. “This could be a considerable blow after such a short period of recovery following the start of the pandemic.”

Looking ahead, the cost of living crisis will have a notable impact on consumers. Auriemma’s research shows one-fifth of cardholders are already borrowing more to afford everything they need, and as prices increase Auriemma anticipates this figure to rise. Auriemma Group will continue to monitor this space closely in upcoming Cardbeat studies and within its Card Customer Service and Complaints roundtable.

Survey Methodology

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma in April 2022, among 80o+ adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

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 Jaclyn Holmes at +44 (0) 207 629 0075.

/by
© Copyright - Auriemma Group