Claro Wellbeing, a financial wellness company, has announced it has become an affiliate member of professional body the Consumer Duty Alliance, to share and develop good practice in financial services and help raise industry standards.
With fewer than 70 days to go until the Consumer Duty deadline on July 31, financial services firms must take steps to protect their customers, as per the Financial Conduct Authority’s rules.
Raising sector standards
As part of the Consumer Duty Alliance membership, Claro Wellbeing, alongside financial institutions Legal & General, Quilter and The London Institute of Banking and Finance, has committed to playing a key role in enabling the Alliance to develop shared Consumer Duty understanding, identify collaborative working opportunities and help raise standards across the sector.
Increasing customer understanding
Claro Wellbeing’s Galina Barengo, head of partnerships and chief of staff, said: “We are delighted to announce our affiliate membership to the Consumer Duty Alliance and hope to collaborate and share ideas to raise standards in the financial services sector. The new Consumer Duty, brings some challenges, and we are committing to support firms with making significant changes to their business.
“Until now, financial institutions have only had an ethical responsibility to do more to support the financial education and literacy of their consumers. But from July 31st, a proactive approach is required to make sure financial services companies meet the terms set out by the financial regulator, the FCA.
“The new rules will ensure customers are put first, receiving communications they understand and products that meet their needs. One way of helping firms meet some of their obligations is by introducing engaging and interactive financial content to increase customers’ understanding of what they are buying. Content such as a financial health check, educational videos and articles, budgeting tools and calculators, and 1-2-1 financial coaching all boost the understanding, and ultimately the protection of the consumer. There are fewer than three months to introduce these measures, so partnering with a financial education expert that can provide this content and support quickly is a good idea.”
Claro Wellbeing has a number of services and solutions, including educational and training resources, to help banks, pension providers and other financial services firms, comply in the four areas of the new Consumer Duty.
Claro Wellbeing can also provide financial coaching to customers to help them heighten their understanding of their finances and the market and offer training to financial services staff to help employees improve their approach to customers.