Kelly Phillips

Senior Business Development Quality Manager

In recent years, financial services firms have faced growing pressure to meet the requirements set by the Financial Conduct Authority( FCA), particularly with the introduction of Consumer Duty. While these regulatory changes have led to an increase in reporting and compliance tasks for businesses, it is essential to remember that a core principle behind these regulations is consumer understanding.

Clear and accessible language is crucial to ensuring that customers fully comprehend the financial products and services they are being offered. Terms like " waiver of premium," " indexation," and even basic product names can often confuse customers, particularly those who are not familiar with financial jargon. If customers do not fully understand the products they are purchasing, they cannot make informed decisions, which can lead to dissatisfaction, poor customer outcomes and issues with retentions.

Navigating scripted communication

One challenge businesses face is whether the scripted nature of customer communications

helps or hinders genuine understanding. While scripts ensure that advisers comply with regulatory standards and cover all necessary details, they can sometimes make conversations feel mechanical and impersonal. When advisers strictly follow scripts, they may lose the ability to engage with customers in a way that feels natural and personalised. This can reduce the effectiveness of communication, particularly when explaining complex financial products. Whilst it is important to adhere to Providers T & Cs and read questions as written, having a more personal approach to the call can be beneficial.

Although scripts offer consistency, ensuring that every customer receives the same level of service, they raise an important question: Is this approach always the best choice, especially when vulnerabilities are present? For example, when customers have limited understanding or face language barriers, a more flexible, conversational approach may be necessary. Striking the right balance between maintaining consistent service and fostering genuine engagement is a challenge many firms and advisers grapple with. One way

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