The Financial Conduct Authority Finds Millions Struggling to Contact Financial Services Providers

The Financial Conduct Authority (FCA) recently conducted its Financial Lives survey with 19,000 respondents and found that 7.4 million people unsuccessfully attempted to contact one or more of their financial services providers over the 12 month period before May 2022. Of those surveyed, only 21.9 million had confidence in the UK financial service industry, and just 36% were confident that most financial firms are honest and transparent in how they treat them. As a response to this lack of trust and success in customer communication, the FCA is introducing the Consumer Duty, which will require firms to act towards good outcomes for consumers to increase trust and confidence in the financial services sector. Additionally, since the start of the cost-of-living squeeze, lenders have supported 2 million mortgage customers financially by providing tools, debt advice, and tailored mortgage forbearance. However, the FCA's survey also found that 4.9 million people used firm communications but it did not help them make a decision. Furthermore, digital banking, payments, and other online services are increasingly becoming popular, with 88% of adults using them, compared to 77% in 2017. Despite this, 6% still use cash heavily and depend on face-to-face services. The FCA will also take on powers for access to cash and expect firms to meet all customer needs.