Implementing Consumer Duty: A Pathway to Success
In a groundbreaking study conducted by iVendi, it has been revealed that an overwhelming majority of dealers (73%) firmly believe that embracing measures to meet the FCA's Consumer Duty responsibilities will create exciting new business opportunities in the automotive industry. This research sheds light on the positive impact of these regulations and highlights the potential for growth and development within the sector.
James Tew, CEO at iVendi, emphasised that dealers who correctly implement Consumer Duty are paving the way for future growth. The regulations call for detailed information about buyer behaviour to be recorded, providing invaluable insights and leading to a more structured and better-informed customer journey. This level of personalisation ensures that products are better matched to individual consumer needs, resulting in a reduction of motor finance rejections over time. As a result, dealers stand to gain significantly from this process.
Improving the Buying Experience for Consumers
Beyond the prospect of new business opportunities, the study also unveiled that an impressive 91% of dealers agree that consumers will enjoy a better buying experience due to the introduction of Consumer Duty regulations. This finding underscores the emphasis on customer satisfaction and the transformative potential of these measures.
Ready to Embrace the Change
When asked about their readiness to meet the FCA's end-of-July deadline for new and existing products or services, an impressive 97% of dealers responded with a resounding "yes." This overwhelming vote of confidence reflects the industry's commitment to adopting Consumer Duty and meeting compliance requirements.
Progress on Implementation
As with any significant change, progress on Consumer Duty implementation varies among dealers. According to the survey, responses on how far dealers had completed their Consumer Duty implementation on a scale of 1-5 (incomplete through to complete) were as follows: 11% chose one, 11% opted for two, 35% said three, 26% picked four, and 17% selected five. The diversity in responses highlights the collective dedication of the dealer community to working diligently towards compliance.
The Tech-Driven Path to Compliance
Recognising the critical role of technology in achieving Consumer Duty compliance, iVendi recently introduced three new Consumer Duty product bundles. These solutions have been thoughtfully designed to support dealers in meeting compliance requirements while aligning sales journeys with the three cross-cutting rules and satisfying the four outcome areas. The positive response from dealers has validated the belief that technology is the key to practical Consumer Duty compliance.
A Bright Future Ahead
As the FCA's end-of-July deadline approaches, the automotive industry is poised for positive transformation. The findings from iVendi's research are a strong signal that motor retailers are taking Consumer Duty seriously and are diligently working towards compliance. While some may be working up to the wire, the vast majority of dealers are confident in their ability to be fully compliant by the deadline.
The journey towards Consumer Duty compliance is an exciting one, as it not only aids regulatory adherence but also promises an improved buying experience for consumers and opens doors to new business opportunities. As an industry, we are committed to embracing this change and continuing to deliver excellence in the automotive sector.
iVendi conducted this research among 170 dealers from within the company's customer base.