TCF compliance requires demonstrating and ensuring customers can be confident they are being treated fairly
The principles of TCF are part of a customer centric business culture, but how to prove their application in your culture may require a new approach. Changes may be necessary in your business processes, but they need not be massive. What you may need to do is look at the information you already have in different ways.
A customer centric approach increases brand confidence and customer loyalty. TCF principles help customers become confident that they are being treated fairly. These customers are also more likely to promote your business and remain loyal. TCF compliance and management information (MI) integrated into your organisation’s culture helps run a more efficient and profitable organisation. Compliance demonstrated also helps reduce the frequency of customer complaints.
Read also: What is Treating Customers Fairly (TCF)?
TCF compliance is not about:
- Satisfying every customer. It is about increasing customer confidence and creating a fair treatment culture. Not every happy customer is treated fairly, similarly not every person who complains was treated unfairly.
- Uniform service. Different organisations apply resources in different ways and have unique requirements to comply. The FSB (governing body) recognises that.
- Dictating products. Products need to meet the specific needs of targeted consumer segments, and need to be communicated accordingly.
- No customer responsibility. Financial service providers are required to give customers the information they require to make informed decisions. They are still expected to participate in decisions, and take responsibility for them.
Key areas process that may require attention:
- Ensuring products are designed for specific identified markets
- Communicating in a transparent manner and marketing in line with TCF principles
- Ensuring communication is ongoing and transparent throughout the sale
- Sharing relevant information and providing customer support
- Managing complaints efficiently
Potential TCF compliance value chain gaps:
- Awareness by staff of how to practically apply the TCF principles
- Making sure that marketing and sales material is clear and compliant
- Employee communication strategies for compliance
- Sharing advice that is transparent and suitable
- Updating the client with pertinent information (through the entire sales cycle)
- Managing complaints using a fair and transparent process
- Soliciting and effectively handling customer feedback
- Incentives and remuneration transparency (RDR)
- Identifying and managing TCF non-compliance risk
- Collecting relevant Management Information (MI) and taking necessary action
If you need a solution – supported by software to help you demonstrate how you are embedding Treating Customers Fairly (TCF) into your culture
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