New Consumer Duty became effective in July this year to a considerable amount of fanfare and it has to be said some consternation from the pension industry, says Steve Berridge, technical manager at IFGL Pensions.
Some industry commentators described it as "treating customers fairly on steroids". Others gave the view that it brought in what should be a fundamental shift in how business was transacted. So, four months on, here are some thoughts on what it means for a pension provider.
Back in the early to mid-2000s, a time which seems far back in the distance now, there was a popular comedy sketch show on English TV, which cannot for political correctness reasons be repeated on mainstream television in the 2020s. It did however spawn some legendary characters. One of these, played by David Walliams, was Carol, a middle-aged apathetic office worker who I am sure struck a chord with many viewers as representing the typical front house customer service adviser. Carol's catch phrase in answer to any question in the vein of "can I do this", or "do you offer this" was a simple "computer says no".
Putting comedy aside for a moment it is fair to say that our industry, along with many in the financial sector has been guilty over the years of giving a "computer says no" answer to many questions put to it by its customer base. For example, "Can I speak to the person who wrote the letter", or "can you send me that paperwork by the end of the week".
New Consumer Duty requires us to take a pragmatic approach to customer care; to put ourselves in the shoes of those we serve and ask ourselves the question "would I be happy to receive this level of service?" If we are honest, those of us who work for product providers, we have probably been guilty of not being "customer-centric" in the past when dealing with our policyholders and advisers.
We live in an information age where people can order a TV from Amazon Prime and expect it to be delivered the next day. Where the latest news spills from news outlets and views from commentators via twitter, almost before it happens.
At IFGL Pensions we are often faced with unusual scenarios put to us by members and advisers who operate in different jurisdictions and time zones. New Consumer Duty perhaps requires us to turn on our head our immediate approach in dealing with these scenarios from "this is difficult, why should I say yes" to "If its within the rules, is there any good reason to say no".
Having a more "computer says yes" attitude and general positivity towards bring the best customer outcomes will I am sure make New Consumer Duty something which firms naturally embrace.
So, in summary, lets consign Carol the "computer says no" worker to history, where she belongs"
