Plain Numbers welcomes FCA’s latest update on a new Consumer Duty
On December 7th 2021, the Financial Conduct Authority published an update to its plans for a new consumer duty. The new proposals set a higher expectation for the care firms provide for their customers, including around their communications.
At Plain Numbers, we are passionate about working with firms to help customers make the best decisions for them. That’s why we welcome this strong focus on consumer outcomes.
The latest consultation paper refers to the work Plain Numbers have been doing to help firms communicate numbers in an accessible way. Our trials showed a Plain Numbers approach can help consumer understanding and we believe this is vital to enabling them to make the decisions that work best for them.
Around half the working age population have numeracy levels below the expectations of a primary school leaver This makes it impossible to ignore the needs of customers who struggle with numbers.
The paper says: “The Financial Ombudsman recognises the importance of good communications. In its annual complaints data and insight 2020/21 it highlighted that many complaints might have been avoided with better communication. Recent work, such as by the Plain Numbers Project, has demonstrated how this can be achieved and the positive impact it can have on consumer comprehension and outcomes.”
It goes on to say: “Lengthy and technical communications can confuse or overwhelm readers; firms should help consumers to navigate the information they provide, explaining relevant context and any jargon or technical terms in a simple way. Recent work, such as by Plain Numbers, has demonstrated how seemingly small changes to communications can substantially increase comprehension among consumers. We expect firms to exercise judgement to ensure they bring the most important information to the attention of consumers in an accessible way.”
All firms who communicate numbers to their customers and want to support good consumer outcomes could benefit from taking a Plain Numbers Approach.
Get in touch with us if you’d like to explore how we can help your organisation help your customers.