New report spotlights financial services commitment on improving customer outcomes
Scotland’s financial services sector has this week launched a new report into the evolving needs of customers, and how the sector is responding to changes in the economic, regulatory and industry landscape.
The report, produced in collaboration across the industry, comes on the back of a major summit hosted by Scottish Financial Enterprise (SFE) and Lloyds Banking Group which brought together leaders and experts from across industry, third sector and regulators. It highlights the financial services sector’s response to evolving customer requirements across Scotland, and examples of collaboration and innovation that are already making a difference to customer outcomes.
Recent research from abrdn Financial Fairness Trust also found that a third (32%) of households in Scotland have nothing in savings – compared to 23% in the rest of the UK – leaving them particularly vulnerable, while one in five (20%) say they are struggling to pay for food or other necessities.
The report underscores the industry’s commitment to helping customers navigate the challenges posed by the digital transition, financial vulnerability and the need for greater financial inclusion. This sits alongside a collaborative programme of activity led by SFE to improve access particular challenges in the unbanked population across Scotland.
The report identifies three areas of focus for the industry through 2025:
Reducing financial exclusion in Scotland
Better equipping Scotland’s population to make good financial decisions
Encouraging consumer to be open about any vulnerabilities to tailor solutions and build trust
Commenting on the launch of the report, SFE Chief Executive Sandy Begbie CBE FRSE said:
“Responding to changing customer needs is one of key pillars of our sector growth strategy, reflecting our collective commitment on this key issue. As well as our support for Financial Inclusion for Scotland and their valuable work, we see first hand the work being done by firms across our sector to create better outcomes for customers, particularly those who find themselves in vulnerable situations.
“But we know we must go further, particularly in helping individuals and households navigate the compound challenges thrown up by the pandemic, cost of living pressures and ongoing economic uncertainty. Collaboration across the sector is essential to drive the innovation we need and this report sets out our determination to deliver improvements in this area.”
Jackie Leiper, SFE Deputy Chair and Chief Customer Distribution Office for Lloyds Banking Group, added:
“Scotland’s financial services industry is at its best when it is collaborating on areas of challenge. We are fortunate to have a strong sector ecosystem with expertise across a range of specialisms to solve problems and ultimately create fairer outcomes for customers.
“Building customer trust is at the core of this agenda. It is vital that we continue engaging with customers in an open and transparent manner, with improved disclosure and communication, better use of data and overall having a better understanding of the challenges being faced at different moments in people’s lives.”
Read the full report below: