Bold Insight launches Consumer Duty service ahead of new rules

User experience and human factors research agency, Bold Insight, has launched its Check UX: Consumer Duty service to fintech companies and financial services ahead of the FCA’s new Consumer Duty rules, due to come into effect at the end of July. 

Consumer Duty, which has been described as “the biggest regulatory overhaul in a decade” in terms of how financial firms serve consumers in retail finance markets, is setting a standard to ensure that consumers are put first.

As a result, firms are expected to review services and ensure that the expected outcomes listed in the Consumer Duty are met.  

According to Bold Insight, key changes in user experience can minimise “robust action” from the FCA, as the new service identifies where companies can make changes to digital products and services that are “fairer, more accessible, and easy to use”, aligning with the principles of Consumer Duty.

Dr Robert Schumacher, managing partner at Bold Insight, said: “With a short time left until the FCA Consumer Duty rules are enforced, firms are in overdrive to begin the process of adhering to these new requirements. 

“Undergoing a review of your product’s user experience can help ensure you de-risk your company in light of the obligations of the Consumer Duty. Furthermore, this is an ongoing requirement – so improving before the deadline is important, but it’s only the beginning.”

The FCA suggested that Consumer Duty will lead to a “major shift in financial services.” It is expected to set higher standards for consumer protection.

Despite this, 55% of lenders do not feel prepared for it, according to research commissioned by Fuse. This is against the backdrop of the FCA’s executive director of consumers and competition, Sheldon Mills, warning that the FCA will “act swiftly and assertively” and take “robust action” against firms who ignore the Consumer Duty.