| Link(s): | Outcomes monitoring: why understanding the consumer experience matters and where firms should focus… |
Context
The FCA’s Director of cross-cutting policy and strategy, Charlotte Clark explains what good practice looks like for outcomes monitoring under the Consumer Duty. The article explains that outcomes monitoring is central to the Consumer Duty, because it helps firms understand customers’ experiences, identify potential harm, and take action to improve outcomes.
Key points to note and next actions
- Strong firms use structured, evidence-based monitoring frameworks linked to the customer journey.
- Effective monitoring is not just about collecting data; firms should use information to identify risks, review performance, and drive improvements.
- Good practice includes defining what good outcomes look like, using measurable indicators, and showing a clear link between data, decisions, and actions.
- Some firms need to improve by making monitoring more proactive, outcomes-focused, and better evidenced.
- Firms should use management information to spot emerging harm, test interventions, and explain why metrics and tolerances were chosen.
- Third-party and distribution-chain oversight is important because customers experience products and services as a whole.
- Boards and senior leaders should show clear evidence of challenge, scrutiny, accountability, and decision-making.
- The strongest firms focus on what changed for customers, not just what activity was monitored.
In summary, firms should not simply monitor activity; they should use outcomes monitoring to identify harm early, take effective action, and prove that customer outcomes have improved.