FCA Sees Better Consumer Duty Reports in Year Two But Wants More Focus on Real Outcomes

The Financial Conduct Authority just wrapped its review of second-year Consumer Duty Board reports. Firms got better at tracking what actually happens to customers, not just what they think happens.

Boards asked tougher questions this time around. They pushed harder on whether products deliver fair value and whether customers get the support they need. The regulator said firms now spot problems faster and fix them quicker, which matters when you’re dealing with people’s money and financial wellbeing. Data use improved across the board. Companies pulled together insights from customer interactions, complaints, and product performance to build a clearer picture of where things work and where they don’t.

What Changed Since Last Year

Communication got clearer. Product design got sharper. Customer support became more responsive. These weren’t abstract improvements—firms tied them to actual data showing how customers experienced their services.

The FCA noted that boards stopped just nodding along when management presented reports. They dug into the numbers and asked why certain metrics looked the way they did. That kind of scrutiny leads to accountability, and accountability leads to people actually doing something when outcomes slip.

Firms built better systems for monitoring customer experiences in real time. Instead of waiting for quarterly reviews, they set up dashboards and alerts that flag potential issues as they develop. Some companies redesigned products after realizing their existing offerings didn’t meet customer needs or deliver the value they promised.

The shift shows up in governance too. Boards now treat Consumer Duty as a core business priority rather than a compliance checkbox. They’re asking management to explain not just what they’re doing but whether it’s working for customers.

Where Firms Still Fall Short

Progress happened. But gaps remain.

The FCA said some firms still struggle with outcome-focused reporting. They collect data but don’t always connect it to what customers actually experience. Numbers fill pages without telling the story of whether people got fair value or decent support when things went wrong.

Data maturity varies widely across firms. Some companies built sophisticated systems that track customer journeys from start to finish. Others rely on basic metrics that don’t capture the full picture. The regulator wants everyone moving toward the sophisticated end of that spectrum.

Boards need to keep pushing on the insights they receive. It’s not enough to see that complaint volumes dropped or satisfaction scores rose. They need to understand why those changes happened and whether they’ll stick. That requires deeper engagement with the data and the people who compile it. Analysts have drawn connections to UK Regulator Sets October 2027 Crypto amid evolving conditions.

The FCA pointed out that truly outcome-focused reporting remains a work in progress for many firms. Companies sometimes confuse activity with impact—reporting on new initiatives or policy changes without showing whether those moves actually improved customer outcomes.

Getting Ready for Year Three

The third cycle of Consumer Duty Board reports is coming. Firms need to use what they learned from the first two rounds to make their reporting sharper and more focused on real outcomes.

The regulator wants companies to refine how they use data and insights. That means going beyond surface-level metrics to understand the underlying drivers of customer experiences. It means connecting the dots between different data sources to build a complete picture.

Boards should reflect on what worked and what didn’t over the past two years. The FCA said this reflection period matters because it helps firms identify blind spots and areas where their monitoring systems might miss important signals about customer outcomes.

Fair value delivery sits at the heart of Consumer Duty. Firms that design products with customer needs in mind—and can prove it with data—will find the reporting process easier. Those still figuring out whether their offerings actually benefit customers will struggle.

The culture shift within firms seems real. People now get held accountable for customer outcomes in ways that didn’t happen before Consumer Duty took effect. Boards ask pointed questions about why certain products exist, whether pricing makes sense, and how quickly the firm responds when customers need help.

The FCA keeps watching how firms adapt to Consumer Duty requirements. The third cycle of reports will show whether the improvements from year two stick or whether companies backslide once the initial push fades. Industry observers have noted parallels with FCA Shuts Down Misleading Motor Finance in recent weeks.

Consumer trust builds slowly but breaks fast. Firms that genuinely focus on outcomes—not just compliance theater—will likely see that trust translate into business advantages over time. The regulator clearly wants reporting that demonstrates real commitment to customer welfare rather than polished narratives that obscure mediocre performance.

Some companies already moved past basic compliance into using Consumer Duty as a framework for competitive differentiation. They market their commitment to fair value and back it up with transparent reporting on how they measure and improve customer outcomes. Others still treat it as a regulatory burden to manage rather than an opportunity to build stronger customer relationships.

The FCA’s message for year three seems pretty clear: keep improving data practices, stay focused on outcomes, and make sure boards engage deeply with what the numbers actually mean for customers.