Financial services firms in the U.K. are being challenged by regulators to come up with new, innovative ways to improve communications with consumers.
The U.K. Financial Conduct Authority (FCA) issued a discussion paper on Thursday that the regulator hopes will kick-start a debate within the financial services industry on ways to deliver information to consumers in smarter and more effective ways.
Smarter Consumer Communications calls on firms to consider innovative methods of engaging with consumers, including the use of videos, infographics, apps or other novel approaches to present information more clearly.
The type of information consumers receive, when they receive it and the way it is delivered can help determine whether consumer outcomes are positive or negative, FCA research suggests.
Clear, engaging information helps consumers to make more informed decisions about financial products and services, the FCA says, which also helps promote competition and meet consumers’ needs.
Some firms are developing new ways of engaging with customers, the FCA says, and it “wants all firms to consider whether there is room for improvement in their own communications.”
“All too often customer communications are so technical that even the most astute consumer would struggle to understand the information,” states Christopher Woolard, director of strategy and competition at the FCA. “Communications play a fundamental role in helping consumers make decisions about the products and services they buy, which is why it’s so important that we work with firms to get this right.”
The FCA is seeking feedback on the discussion paper by Sept. 25.