Delivering compliant digital products 30 September 2015 Clare Hughes Partner Advertising retail financial products via digital media The origination process and points to note across different products ID: 547709
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Slide1
Eversheds Digital Banking Seminar
Delivering compliant digital products
30
September 2015
Clare Hughes
PartnerSlide2
Advertising retail financial products via digital media
The origination process and points to note across different products
The use of apps and the challenges they present
Treating customers fairly – what does this mean in the context of digital media?Retail financial products – our top 10 tips
What we will coverSlide3
The key challenge is often spaceFacebook
, Twitter, banners, in app advertisingBalancing the brevity valued in digital media with the requirement to show information
Taking into account legal requirements and those of the regulator Issues to bear in mindFinancial promotions must be internally compliant
No reliance on click-throughsConsistent message from OFT and FCA
Latest FCA position set out in FG15/4 – Social Media and Customer Communications
Financial promotions and digital mediaSlide4
Is this a brand promotion message or a product specific message?
How does this impact form and content?Are you including trigger information?Do you need to? What impact on space does this have?
Can you avoid including trigger information in that financial promotion?At what stage in the dialogue with the customer are you? Can the trigger be postponed to a later screen?
Can you use phasing in effect to make the financial promotion bigger?BannersPlacement of calls to actionPushing customers through necessary information
Considerations
Financial promotions and digital mediaSlide5
Is this a financial promotion?Credit and the boundaries of mere publication
Presentation of risks as well as benefitsFCA driven requirement
Relevant to mis-selling so important to get this right
How to present itSo called “hover boxes”?How prominently?Small print?Transparency is key
APRsIn relation to credit and mortgages – are you tracking your APRs?Web build and application routes
Considerations
Financial promotions and digital mediaSlide6
Regulatory riskShift in legal and regulatory risk
FCA is more vocal OFT – relevant to credit productsFCA
does review financial promotions and is focussing on customer communications“Smarter Customer Communications” discussion paper
Considerations
Financial promotions and digital mediaSlide7
Credit - collecting customer informationAffordability assessments and verification of data
Requesting evidence from the customer? Benchmarking against standard data?
Phases of contracting – pushing the customer through separate screens vs. tabs and links to documentsProvision of pre-contractual information – all products
“In good time”?FCA’s TR15/5 – Provision of Premium Finance to Retail General Insurance CustomersProblems of not providing pre-contractual information correctly and at the right time
Consumer Credit (Disclosure of Information) RegulationsFinancial Services (Distance Marketing) RegulationsDurable medium?
Problems with getting this wrong
Copies sent tot he customer’s email?
Originating accounts
Digital media Slide8
Provision of pre-contractual information cont.Problems of presentation –
SECCIsSelf standing
FormattingConsequence of getting it wrong – unenforceabilityThe agreement / terms and conditions
Clarity of presentationIs it clear to the customer this is the point of “purchase”?Digital signaturesCredit – on the agreement – formatting of the agreement
Scroll boxesThe specific problem of creditForms of signature
Typing a name
Click boxes
Electronic codes
Capturing your signature (if required)
Storing a record of the agreement for future reference
Originating accounts
Digital mediaSlide9
Mortgages – specific issuesNo issue sending offer docs,
KFIs etc to the customerEven second charges to be free of the challenges of the
CCA soonBUT – the mortgage deed must be signed with a wet signature
Biggest barrier to use of digital mediaAdvice post Mortgage Market Review changesUse of Skype & FaceTime
Originating products
Digital media (cont’d)Slide10
Is there enough space to be able to go through the origination process properly?Presentation of documents
Is it making things too easy?Remember the regulator’s concern in some markets that the application process was presented as ease and “hassle free” leading to poor customer outcomes
Using apps
Digital media (cont’d)Slide11
TransparencyIn financial promotions
In the customer journeyAre you facilitating the customer’s ability to shop around?Are customers given the option to print / store documents?
Is there a clear understanding of the customer’s cancellation rights?Clear provision of a helpline / contact number?
Have you got all the information you need to decide whether the product is appropriate for that customer?What does
TCF mean for digital banking?
Digital media (cont’d)Slide12
Try things for yourself Walk through the journey end to end
Was the experience clear and transparent?Was enough information provided?Structure before detail
Keep the customer at the heart of your decisions around the use of digitalIt isn’t just about ease – it is also about making informed decisionsThe need for standalone compliance
Don’t bury risks and regulatory required informationBe clear, fair and not misleadingDon’t compromise proper execution to move with the trend
Our top tips
Digital media (cont’d)Slide13
Questions?Slide14
Partner
Clare Hughes
Partner, Company commercial+44 783 113 3288
clarehughes@eversheds.comEvershedsOne Wood StreetLondon
EC2V 7WS