Consumer Duty: How the UK public perceive FS firms

The first stage of the FCA’s Consumer Duty will be implemented next month, and will require firms to emphasise consumer protection and good customer outcomes. But how much progress have firms made over the last few years – and are the public noticing any improvements?

Looking at some key metrics from YouGov BrandIndex shows that customers have been consistent in their perceptions of FS firms over the past few years. Since 2019, Value for Money scores have gone from 33 to 32 (-1), and Quality scores have seen a similar change, falling from 49 to 48 (-1). Overall Customer Satisfaction has been similarly stagnant, declining slightly from 73 to 72.

We can also see that, on average, FS firms compare favourably to a number of other similar consumer sectors for these metrics. In terms of Quality, they are second only to supermarkets (51), and for Customer Satisfaction, they are second only to retail businesses (76). Value for Money may be a sticking point: while they handily outperform utilities and services (8) – which have fallen far from a 2019 score of 24 – and transport firms (4), they lag behind supermarkets (38), airlines (39), and retail (48) companies.

The FS sub-sectors that are performing best in terms of value, quality, and satisfaction

Looking at the sub-sectors that make up FS, we can see that some perform better than others.

General insurance companies, for example, may be in the best position once Consumer Duty comes into force: with Value for Money scores of 45, Quality scores of 57, and Customer Satisfaction scores of 77, it outperforms each measure’s average.

Life Insurance, Pensions, & Wealth Management firms come next, with scores of 36 for Value for Money, 50 for Quality, and 75 for Customer Satisfaction – again beating the FS sector average for all three measures.

Next, Credit Cards & Payment services. Firms in this sector have an average Value for Money score of 31, while Quality scores are at 49 and Customer Satisfaction scores at 73.

And finally, scores for banks and building societies, which are lower than average for Value for Money (27), Quality (44%), and Customer Satisfaction (68). These firms could be the ones with the most work to do ahead of the implementation of Consumer Duty. If they can reach the required standard, they won’t just appease the regulator – they will improve their relationships with customers as well.

Wondering where your firm stands in the eyes of customers? Contact one of our experts today.