Financial services industry responds to evolving customer demands
Scottish Financial Enterprise (SFE) has launched its second Changing Customer Needs report, highlighting its commitment to improving customer outcomes against a backdrop of changes to the economic, regulatory and industry landscape.
The representative body for Scotland’s financial services industry’s report puts the spotlight on the sector’s response to evolving customer requirements, and examples of collaboration and innovation it says are already benefiting customers.
The report found that Consumer Duty is generally viewed as having a positive impact on both firms and their customers. Consumer Duty was introduced more than two years ago to set higher standards for customer protection in UK financial services. Among other aspects, it requires firms to put consumer needs first and demonstrate “good outcomes” for retail customers.
Some 70 per cent of respondents in the report agreed the duty has had a positive effect, while just under 30 per cent indicated that it has had no material impact either way. The report pointed out that in terms of impact “gaps still exist” when it comes to Consumer Duty.
The report also underscored the industry’s commitment to helping customers navigate the challenges posed by the digital transition, financial vulnerability, and the need for greater financial inclusion.
It stated: “Financial inclusion collaboration continues to be a key strength of the Scottish financial and professional services ecosystem.”
It added that “this will continue to be a focus area with initiatives including the simplification of ID requirements, continued work to reduce the number of unbanked people in Scotland and greater collaboration between industry and the third sector.
“Going forward key areas of focus will be standing up an in-school banking pilot with the view to a wider roll out to ensure all school leavers have access to a bank account and, ultimately, reduce the number of unbanked. SFE will also be running its annual Vulnerable Customer summit later in the year.”
Emma Noble, chair of Lloyds Banking Group’s Scottish Executive Committee and chair of the SFE Changing Customer Needs Group, comments: “Scotland’s financial services sector thrives when we tackle challenges collectively. By leveraging our diverse ecosystem of expertise, we can solve complex problems, and ensure fairer outcomes.
“SFE will continue to work with our members and partners to improve financial inclusion in Scotland, including through our school leavers bank account pilot which will launch this year with the aim of ensuring all children are connected to the financial system when leaving school.”
SFE chief executive Sandy Begbie CBE, adds: “Meeting evolving customer needs is a cornerstone of our growth strategy, and a shared priority. While we value our partnerships across the industry and celebrate the progress firms have made in supporting vulnerable clients, we recognise there is more to do.
“As households face ongoing economic uncertainty, sector-wide collaboration is vital to spark innovation. This report reaffirms our commitment to delivering better, more resilient outcomes for everyone.”
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