The Financial Conduct Authority (FCA) has kick-started a debate to encourage regulated firms and consumer groups to improve how they communicate with consumers.
The FCA is concerned that customers can struggle to understand the information presented to them and that it can, in fact, overwhelm, confuse, distract or even deter people from making effective choices if presented in a way people they struggle to engage with. They cite that consumers often fail to make good decisions about financial products due to low levels of financial literacy, the complexity of some financial services and products, and the use of jargon.
The FCA said its studies show that the information consumers receive, when they receive it and the way it’s delivered, can drive both poor and positive consumer outcomes. The FCA is stressing the importance of good communications in helping consumers make decisions about the products and services they buy.
This is a view that CCS shares with the FCA, and it’s one of the reasons why we launched Choices of Funding – as helps you to present all the financial options available to customers in a simple, clear and concise manner. You can find out more about Choices of Funding by clicking here.
The FCA has launched a discussion paper, Smarter Consumer Communications, which challenges firms to consider innovative ways of engaging and communicating with consumers about products and services. http://www.fca.org.uk/static/channel-page/dp-smarter-comms/dp-smarter-comms-index.html
SOURCE: Credit Today