Meeting the FCA's Consumer Duty Obligations with Accurate Management Information
At iVendi, we understand the importance of staying ahead of the curve in the ever-evolving financial industry.
The Financial Conduct Authority (FCA) has recently introduced the Consumer Duty, which imposes new responsibilities on dealers and lenders. As a motor retail technology market leader, we believe that compiling accurate and timely management information (MI) will be crucial for meeting these new obligations.
Our Senior VP Product and Insight, Rob Severs, highlights the importance of monitoring essential metrics over the long-term in proving that customer needs are being put first.
"MI will play a crucial role in helping both lenders and retailers prove compliance and continuous improvement in Consumer Duty. It provides the data and insights necessary to understand how good vehicle buyer outcomes are being delivered and where improvements need to be made.
I suggest tracking several MI metrics for the motor retail sector, including the volume of rejections, complaints, customer feedback, and outcomes of sales reviews. He advises dealers and lenders to create a checklist to ensure that the MI they compile meets basic requirements.
For lenders, Consumer Duty should result in an increase in applications from its target customer base and a decline in rejection volumes, showing that systems and intermediaries are introducing their products correctly. Lenders, as product manufacturers, will rely on distributors to provide low-level MI for each lender finance product, including conversion rates, product suitability, accuracy metrics, and more.
Dealers, as product distributors, will need to ensure they have a fair and transparent panel of lender products to offer customers, demonstrating compliant processes and value to the end-consumer. They will rely on IT system providers to provide data such as audit trails, market finance rates, and sufficient insight to produce accurate representative examples".
At iVendi, we understand the importance of technology in delivering effective results with greater accuracy and speed. We are already working with motor retailers and lenders to put these processes in place, ensuring that all compliance needs are gathered in one place, including data protection and consumer rights laws and regulations.
Contact us today to learn more about how we can help you meet the FCA's Consumer Duty responsibilities with confidence.