Information provided by banks was inadequate to make informed decisions.

Information provided by banks was inadequate to make informed decisions

As per a survey, 49% of people admitted that they found the information supplied by banks and financial service providers challenging to understand.

However, 44% of people stated that they found the information provided fairly easy to understand, while the rest could not, as per YouGov.

As per 48%, the information provided by banks and financial service providers on rare occasions was not enough to make informed decisions.

Nonetheless, about 33% declared that they were provided with enough information that helped them make informed decisions.

A new consumer duty is set to come into effect that has clearer and higher standards of consumer protection and requires financial service providers to put consumers’ interests first.

The rule will be enforced from July 31 onward for new and existing financial products and services that are open for sale or renewal, and for closed products or services from July 31 next year onward.

The rule states that the firms must provide customers with accurate information that will enable them to make an informed decision.

37% of the people surveyed expressed the opinion that banks and financial services are doing an excellent job of communicating risk, while 47% said that they are not.

As per 36%, they revealed that the service provided was worth their money, while 43% stated they had a poor experience.

While 60% were more than satisfied with the service provided by their banks, 27% said that they were not.

 In March, YouGov surveyed 2,000 people across Britain.

A spokesperson for UK Finance stated that “The banking and finance industry is committed to delivering good outcomes for customers and the industry recognises that the introduction of the consumer duty is to fundamentally reinforce these high standards.”

“Firms have made extensive progress in preparation for the consumer duty which is due to be introduced in July this year and UK Finance is continuing to support its members throughout the process.”

- Published By Team Timeswire

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