Most vulnerable customers see no service improvement since Consumer Duty

Most vulnerable customers have seen no positive improvement in the way they have been treated by financial services companies since the implementation of Consumer Duty.

That was according to Smart Money People, which said that 81% still felt this way despite the rules being introduced in July 2023.

The firm also said that these customers highlight access to “real people” as the most important factor for their service.

However, among consumers’ biggest frustrations was having no access to human support (48%).

Some 2,000 consumers were surveyed for the research, which was published yesterday (25 July 2024).

Jacqueline Dewey, chief executive of Smart Money People, said: ”It’s particularly concerning that vulnerable customers have not seen an improvement in their experience during this time.

“This is why we are encouraging consumers to feedback on both good and bad experiences.”

Frustrations

The study also revealed that 7% of consumers have experienced declining levels of service in the past year. 

Among frustrations include no available phone number (32%) and an over-reliance on chatbots (24%).

“The FCA’s Consumer Duty guidelines are specifically designed to put the onus of consumer communications and outcomes on the provider,” Dewey said.

“However, our data shows customers are not seeing the impact of these guidelines 12 months later.”