Use your Voice of the Customer programme to meet TCF requirements

Treating Customers Fairly (TCF) is a regulatory approach that requires financial institutions to deliver fair outcomes to their customers. This approach is crucial in an industry that is often viewed with suspicion by consumers. By putting customers at the center of their operations, financial institutions can build trust with their customers and ensure that they are treated fairly. The six outcomes of TCF are designed to ensure that financial institutions are transparent in their dealings, provide clear information, and act with integrity. To achieve these outcomes, financial institutions must embed the ethos of TCF into their culture and drive its principles from the very highest level. They must also have effective governance and controls in place to ensure that they are meeting their obligations under TCF.

Customer experience strategy andVoice of the Customer (VoC) programs can help financial institutions meet their regulatory expectations under TCF by identifying areas where improvements can be made to deliver fairer outcomes for customers. VoC programs help to gain a deeper understanding of how customers feel about the products and services they receive. By asking customers to rate the process, information, and advice shared, or product explanation during a sale, financial institutions can determine the fairness of a transaction and identify areas for improvement. VoC programs also play a crucial role in measuring all six TCF outcomes periodically and from the customer's perspective.

In this article, we will delve deeper into how VoC programs can help achieve each of the six TCF outcomes. We will explore how customer feedback can help financial institutions to put customers at the heart of their business, provide clear information about their products and services, ensure that their products and services meet customers' needs, provide customers with suitable advice, deal with customer complaints in a prompt, efficient, and fair manner, monitor their performance to ensure that they are delivering fair outcomes to customers, and take appropriate action when things go wrong.

Understanding TCF

TCF stands for "Treating Customers Fairly," which is an outcomes-based regulatory approach designed to ensure that financial institutions deliver fair outcomes to their customers. TCF aims to protect customers by ensuring that financial institutions are transparent in their dealings, provide clear information, and act with integrity. TCF is important because it creates a culture of fairness and transparency within the financial industry. By putting customers at the center of their operations, financial institutions can build trust with their customers and ensure that they are treated fairly. This is particularly important in an industry that is often viewed with suspicion by consumers.

The expectations placed on financial institutions through TCF are centered around delivering fair outcomes to customers. This means that financial institutions must embed the ethos of TCF into their culture and drive its principles from the very highest level.

Financial institutions are expected to:

• Put customers at the heart of their business and treat them fairly at all times.
• Provide clear information about their products and services, including costs and fees.
• Ensure that their products and services meet customers' needs and are sold in a way that is fair.
• Provide customers with suitable advice, taking into account their individual circumstances.
• Deal with customer complaints in a prompt, efficient, and fair manner.
• Monitor their performance to ensure that they are delivering fair outcomes to customers.
• Take appropriate action when things go wrong to put things right and prevent them from happening again.
• Be transparent in their dealings with customers and regulators.

Financial institutions are also expected to have effective governance and controls in place to ensure that they are meeting their obligations under TCF. This includes having clear policies and procedures, training and development for staff, and regular monitoring and reporting of performance.

TCF and VOC

Voice of the Customer (VoC) programmes help with TCF by providing insights into how customers feel about the fairness of treatment delivered by financial institutions. These programmes can help financial institutions to meet their regulatory and other expectations under TCF by identifying areas where improvements can be made to deliver fairer outcomes for customers.

CX programmes can uncover more than just customer satisfaction, allowing financial institutions to gain a deeper understanding of how customers feel about the products and services they receive. By asking customers to rate the process, information and advice shared, or product explanation during a sale, financial institutions can determine the fairness of a transaction and identify areas for improvement.

Moreover, it is critical that all six TCF outcomes are periodically measured, and these factors are understood from the perspective of a customer. A VoC programme that asks if a customer felt fairly treated during a transaction can help identify any issues that need to be addressed to ensure that customers receive products and services that genuinely benefit them.

 VOC per TCF outcome

Outcome 1: Customers are confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture

A VoC program can help organisations to understand whether customers have confidence in the company's culture of fair treatment. For example, asking questions about the customer's perception of the company's values and whether they feel that the company is committed to treating them fairly can provide insights into this outcome. Additionally, asking customers to rate the level of transparency and honesty they experienced during interactions with the company can provide an understanding of the perceived commitment to fair treatment.

Outcome 2: Products and services marketed and sold are designed to meet the needs of identified customer groups and are targeted accordingly

Satisfaction questions regarding how products or services meet customer's needs, and whether they feel that the company is targeting the right products and services to the right customer groups, can provide insights into this outcome. Additionally, asking customers to rate the level of customisation and personalisation they experienced during interactions with the company can provide an understanding of how well the company is targeting products and services to specific customer groups.

Outcome 3: Customers are given clear information and are kept appropriately informed before, during, and after the time of contracting

Asking questions about how well information is communicated and whether customers feel informed throughout the process can provide insights into this outcome. Additionally, asking customers to rate the level of transparency and clarity they experienced during interactions with the company can provide an understanding of the perceived level of information provided.

Outcome 4: Where customers receive advice, the advice is suitable and takes account of their circumstances

Asking questions about how well advice met their needs and whether they feel that the company took their individual circumstances into account can provide insights into this outcome.

Outcome 5: Products perform as firms have led customers to expect, and service is of an acceptable standard and as they have been led to expect

A VoC program can help organsations to understand whether customers feel that products and services are performing as expected. Asking questions about the level of satisfaction with product and service performance, and whether customers feel that the company has delivered on their promises, can provide insights into this outcome. Important is to gather information during and after the sale can provide an understanding of the perceived level of service.

Outcome 6: Customers do not face unreasonable post-sale barriers imposed by firms to change a product, switch provider, submit a claim, or make a complaint

During the servicing phase of a customer’s journey, asking questions about the level of ease in changing products or providers, submitting claims, and making complaints can provide insights into this outcome. Additionally, asking customers to rate the level of support received when making changes or submitting claims can provide an understanding of the perceived level of post-sale support.

In conclusion, Treating Customers Fairly (TCF) is an essential regulatory approach for financial institutions to ensure that they are providing fair outcomes to their customers. Voice of the Customer (VoC) programmes can play a crucial role in helping companies to meet their regulatory obligations under TCF. By listening to customers' feedback, financial institutions can identify areas for improvement and take action to provide fairer outcomes for their customers