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Guest blog by Recordsure

In recent weeks, we brought together Consumer Duty experts, in partnership with the BSA, to consider all things Consumer Duty and what it means for the mortgage market.

In our concluding webinar of the three-part series, Garry Evans, Recordsure’s Chief Product Officer, and Olivia Fahy, Recordsure’s Senior Product Manager, considered how the sector can use RegTech to effectively support Consumer Duty compliance and provide evidence for the FCA’s “show me, don’t tell me” approach.

Here we take a whistle-stop tour of the webinar’s highlights, including a closer look at the role that tech and AI can play in helping get the mortgage market ready for the new Duty.

A better method of oversight than random samples

To put it succinctly, there are two problems with random sampling – the method currently used by many mortgage Quality Assurance teams: it’s random, and it’s a sample.

By reviewing just a small sample of customer interactions, a large proportion of consumer data is left un-analysed, which can make it difficult to paint a true picture of where real issues may lie. Often, there is the myth that upscaling to review 100% of all customer calls requires a dramatic increase in resource. This scenario may certainly be true if relying on human resource alone but utilising the right kind of intelligent technology will mitigate this need – and actually give QA teams 100% oversight of customer interactions. In turn, this means their focus can be on those calls that need most attention.

AI and tech’s role for the mortgage sector

The webinar highlighted AI and technology in the market today, that can help with: 

• Catching the errors

With mortgage teams under increasing pressure, being able to evidence the information supplied to customers for both remediation and regulation purposes is key. Taking proactive action now to gain a deeper understanding of all the advice being given to customers will prove invaluable in the future.

• Complying with the Consumer Duty

The step-change in regulation that the Consumer Duty will bring should not be under-estimated. More and more the FCA talks about firms embracing AI and using data to gain greater oversight of customer interactions. Having this level of oversight is no longer a pipedream and is achievable, so the FCA will be keen to see this in practice.

Catch up with the rest of the webinar-series

This webinar was the final in a 成人头条and Recordsure Consumer Duty focused trilogy. where the expert panel explained how firms can gain long-term Duty compliance. The specialist panel then looked more closely at what will be considered a good outcome for the Duty , and what the possible implications maybe for firms that aren’t compliant. 

The views, opinions and positions expressed within guest blogs are those of the authors and do not necessarily represent those of the BSA.