A new study by ArvatoConnect reveals a missed opportunity for financial services firms to fully embrace the Consumer Duty guidelines set by the Financial Conduct Authority (FCA).
One of the most eye-opening insights from the study is that nearly half of financial services companies (46%) feel they should have prioritised board-level representation for customer outcomes in the first year of the regulations.
The research report, Navigating Consumer Duty, illustrates how limited board engagement has impacted firms’ progress. While Consumer Duty aims to foster a customer-centric culture, only 44% of firms reported that their board increased focus on customer outcomes. Instead, responsibility has often defaulted to risk and compliance teams, a trend the FCA has identified as an area for improvement.
The survey, conducted among 100 CX leaders, indicates that most companies have made moderate progress. Though 27% reported significant improvements, 42% said outcomes have only moderately improved, and 22% believe changes have been minimal.
Reflecting on these findings, James Towner, Chief Growth Officer at ArvatoConnect, pointed out that board-level support is key for firms to balance customer and business goals effectively and to unlock budget for customer experience (CX) improvements.
Financial services firms also highlighted the role of technology in supporting compliance. Over half (51%) are exploring AI and automation, while 45% plan to improve data analytics. However, 29% also see a need to shift away from AI, advocating for increased human contact to better support customer needs.
Towner describes “digital orchestration” as a strategic path forward, where firms deploy technology thoughtfully to strengthen customer experience without replacing human interaction.