Will we see more innovation in financial products?

The UK financial markets regulator, the Financial Conduct Authority (FCA), recently announced that they would like to see an ‘innovation heaven’ in financial products. This chimes with much of the discussion at the round-table on financial services that Teleperformance hosted recently.

The main question being explored is how much the financial service industry needs to change to cope with the kind of service that customers now expect – 24/7 across multiple channels including open and transparent social networks.

We’ve known for some time that customer habits are changing and there is now a common expectation that we can choose the method of communication with the companies we wish to do business with, be it voice, email, web or mobile but has the financial services industry been able to keep a pace with the ever-changing demands of the modern customer and why this innovation needed?

This Reuters article explores some of the issues involved, but in short this is about more than just an improvement in service. Customers that are often bamboozled by long-winded terms and conditions, jargon, clauses, and small print want financial service companies to communicate in a more meaningful way and this customer desire is supported by FCA guidance.

The FCA was originally formed because the previous regulator failed to prevent the rampant mis-selling of financial products in the boom that preceded the economic crash of 2008.

If innovation can bridge the gap between traditional sales channels and compliance, can it re-build consumer confidence with the UK financial market and lead to a new era of products that are considerate to the variety of communication channels that we now all expect?

I believe it can and it could lead to a surge in popularity with those already engaged with multi-channel communication – Consumers and retailers alike. If that does happen it would create a growing demand for innovative solutions to customer service and care.

30 St Mary Axe, London - The Gherkin

 

Photo by Paolo Margari licensed under Creative Commons

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