VoC Study Reveals ‘Consumer Duty Gap’ as Firms Struggle to Prove Good Outcomes
A recent Voice of the Customer (VoC) study suggests that UK financial services firms are still struggling to develop sufficiently robust evidence to satisfy the demanding outcome testing requirements of the Consumer Duty.
The findings, published following a webinar in partnership with VoC specialists CustomerSure and attended by 536 senior financial services professionals, indicate a significant gap between collecting customer feedback and making it fit for regulatory purpose.
Low Confidence in Outcome Testing
When polled on their confidence in using current customer feedback processes to provide robust evidence for Consumer Duty outcome testing, only 4% of respondents stated they were ‘very confident,’ noting that their feedback was fully integrated and outcome-driven.
The vast majority indicated their processes had gaps: 40% were ‘somewhat confident,’ stating that feedback existed but was not robust enough for Consumer Duty requirements, while a further 34% were only ‘fairly confident,’ acknowledging that clear gaps still existed. Overall, more than three in five attendees (62%) admitted their processes were either insufficient, still being built, or not robust enough for testing.
Culture and Ownership Hinder Change
The study also highlighted significant internal and cultural barriers preventing firms from translating feedback into tangible business change. The biggest challenge cited was a joint tie between lack of ownership (no clear responsibility for acting on feedback) and cultural resistance (staff and leadership not prioritising feedback-driven change), both marked by 34% of respondents.
Close behind was poor follow-through, with 33% reporting that actions are started but not sustained or embedded. Other major challenges included weak analysis (27%) and the difficulty of demonstrating to Boards and regulators that changes made have actually improved customer outcomes, cited by 23%.
In terms of methodology, most firms are heavily reliant on mandated or traditional mechanisms to capture feedback, with complaint handling and root-cause analysis topping the list at 75%. This was followed by Net Promoter Score (NPS) or Customer Satisfaction (CSAT) programmes (55%) and post-transaction/post-call surveys (49%). Fewer firms currently leverage staff-captured feedback (40%) or focus groups/customer panels (20%).
