A lack of information is putting people off from potentially saving for a better future, according to new research from Moneyhub.
Over two fifths (42%) of consumers stated that they do not find it easy to interact with their provider, with one in four (25%) citing that the biggest reason for communication being difficult is their provider not having an app. The lack of an app was also rated as more important than the ability to ‘speak with someone.
This difficulty in communicating with providers could be leading to poor customer outcomes. The findings from Moneyhub show over a third (36%) of consumers aged 35-44 years said too little information is putting them off adding to their pension. And over 1 in 8 (13%) of consumers don’t even know who their provider is.
With the FCA’s Consumer Duty now in effect, demonstrating positive outcomes is more important than ever. However, when asked, only 19% (less than 1 in 5) of respondents felt that their provider had delivered on all four of the FCA’s Consumer Duty outcome areas.
One way for providers to do this is by using technology and solutions such as commercial pension dashboards and Open Finance. Alongside being able to find and view all their pension data.
Total percentage of consumers who think their provider has FAILED meeting the FCA’s Consumer Duty regulations to improve customer outcomes:
• “Communications to make effective financial decisions” – 25%
• “Good quality support and after-sales care” – 24%
• “Transparent pricing and demonstrating value for money” – 18%
• “Offering suitable products and services to meet your needs” – 16%
Mark Horwood-James, Managing Director at Moneyhub Personal Finance Technology said: “Consumers are saying loud and clear that pension and investment providers can be doing more to help them make better financial decisions. It is also striking how in demand technology is from customers. Apps and specifically the use of Open Banking and Open Finance technology can contribute to better financial wellness and encourage positive outcomes. The ability for consumers to see a holistic picture of their finances enables them to make decisions that can improve their long-term financial health. Pension and investment providers could have a huge impact in this area, creating brighter futures for their customers and their businesses.
“The UK Government’s new Smart Data sharing laws (DPDI) and Pensions Dashboard announcement – alongside the continued emergence of Open Finance is accelerating the race to deliver customer-centric solutions. And the next few years will rapidly reveal who leads, and who gets left behind.”
Margaret Snowdon, OBE said: “Consumers make financial decisions every day, whether buying a car or a TV and whether or not to use credit or even to get credit. Pensions are part of a wider universe in real lives. Providers have a big role to play in expanding consumer financial understanding, either by targeted and easy to digest information when action is needed, or better still, a continuous programme of bite sized information delivered in an eye-catching way, as early as possible. Nudges as part of a dashboard covering all of a consumer’s finances is the ideal.”
To read the full report, please visit here
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