2023
9
The Impact of the UK Consumer Duty Regulations Market Report 2023
2024-01-04T14:01:54+00:00
REPFFB008E4_BDEE_41D3_8055_40845C17703C
2195
169332
[{"name":"Financial Services","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services"}]
Report
en_GB
The Consumer Duty requires firms to put customers' needs first, presenting an opportunity to increase trust through a more consistent consumer-centric approach. Stefania Apostol, Innovation Analyst…

The Impact of the UK Consumer Duty Regulations Market Report 2023

£ 2,195 (Excl.Tax)

Description

The focus of this consumer report is UK consumer attitudes towards different aspects of the Consumer Duty. Featuring analysis of consumer behaviour and confidence, market dynamics, and innovation opportunities.

Key Issues Covered in this Report

  • How much people trust or distrust providers of financial products to act in consumers’ best interests.
  • Consumers’ perceptions of rip-off charges and fees.
  • Consumers’ confidence in their understanding of certain financial terms and interest in methods to improve their knowledge.
  • Methods to contact financial services providers and satisfaction levels with the support received.
  • Consumer behaviour towards certain aspects of the Consumer Duty.
  • Competitive strategies and launch activity in light of the Consumer Duty.

Support consumers during the cost of living crisis

Delivering good outcomes, including for those in vulnerable circumstances, is a key area of the Consumer Duty, which was introduced in the midst of the cost of living crisis. This highlights the importance of supporting financially vulnerable consumers and offering targeted support to create a more inclusive financial landscape.

Combat perceptions of predatory practices

Perceptions of rip-off charges pose a significant challenge for providers who have to ensure they provide fair value. These negative perceptions, especially regarding fees imposed by certain sectors, can erode trust. Addressing this issue through transparent pricing is essential to uphold consumer trust and regulatory compliance.

The Consumer Duty can help increase trust

While different financial products enjoy varying levels of trust, the Consumer Duty is an opportunity for firms to boost trust. By increasing pricing transparency, helping consumers improve financial knowledge, providing personalised support and consumer-centric products, providers can strengthen connections, thus enhancing trust.

Expert Analysis from an Industry Specialist

This report, written by Stefania Apostol, a leading innovation analyst, delivers in-depth commentary and analysis on the impact of consumer duty regulations in the UK financial services industry.

The Consumer Duty requires firms to put customers’ needs first, presenting an opportunity to increase trust through a more consistent consumer-centric approach.

Stefania Apostol - Financial Services AnalystStefania Apostol
Innovation Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities in light of the Consumer Duty
    • Market dynamics and outlook
    • Graph 1: financial products ownership, 2023
    • What consumers want and why
    • Graph 2: understanding of financial terms, 2023
    • Graph 3: methods of contacting a financial services provider, 2023
    • Innovation and marketing
  2. Market Dynamics

    • Macro-economic factors
    • Graph 4: GDP, 2021-2023
    • Graph 5: CPI inflation rate, 2021-23
    • Graph 6: the financial wellbeing index, 2016-23
    • Graph 7: “Have you been affected by any of these issues over the last two months? Please select all that apply.”, 2023
    • Graph 8: financial products ownership, 2023
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Trust in providers of financial products
    • Graph 9: trust in financial services providers to act in customers’ best interests, by product, 2023
    • Graph 10: distrust in financial services providers to act in customers’ best interests, by financial situation, 2023
    • Graph 11: trust in mortgage providers to act in customers’ best interests, by housing situation, 2023
    • Graph 12: trust in life insurance providers to act in customers’ best interests, by generation, 2023
    • Graph 13: trust in providers of retirement income products to act in customers’ best interests, by age and gender, 2023
    • Perceptions of rip-off charges or fees
    • Graph 14: perceptions of rip-off charges or fees, 2023
    • Graph 15: perceptions of rip-off charges or fees – investment company, by generation, 2023
    • Understanding of financial terms
    • Graph 16: confidence in understanding of financial terms, 2023
    • Graph 17: consumers who are not very or not at all confident in their understanding of the financial terms, by financial situation, 2023
    • Graph 18: confidence in understanding of ‘hard credit check’, by financial situation, 2023
    • Graph 19: confidence in understanding of ‘FSCS protected’, by ownership of selected financial products, 2023
    • Graph 20: confidence in understanding of ‘Representative APR’, by generation, 2023
    • Methods to improve understanding of financial products and services
    • Graph 21: interest in methods to improve understanding of financial products and services, 2023
    • Graph 22: interest in podcasts and chat bot services to improve understanding of financial products and services, by generation, 2023
    • Customer service support
    • Graph 23: methods of contacting a financial services provider, 2023
    • Graph 24: selected methods of contacting a financial services provider, by generation, 2023
    • Graph 25: selected methods of contacting a financial services provider, by product ownership, 2023
    • Graph 26: satisfaction with the support received from the financial services provider, 2023
    • Graph 27: satisfaction with the support received from the financial services provider, by product ownership, 2023
    • Graph 28: satisfaction with the support received from the financial services provider, by financial situation, 2023
    • Behaviours towards Consumer Duty regulations
    • Graph 29: behaviours towards Consumer Duty regulation, 2023
    • Graph 30: agreement with the statement ‘I think that financial services providers make it difficult for people to cancel products’, by generation, 2023
    • Graph 31: trust in financial advisers to recommend the most suitable products and services, by age groups, 2023
  4. Innovation And Marketing Trends

    • Competitive strategies and launch activity
    • Advertising and Marketing Activity
  5. Appendix

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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