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VIDEO: Single point dealer processes essential for new FCA Consumer Duty

Single point dealer processes that track motor finance activity could prove essential to meeting the Financial Conduct Authority’s (FCAs) Consumer Duty principle, says iVendi.

James Tew, chief executive officer (CEO) at iVendi, said that the ability to record, review and audit all aspects of the consumer journey in a centralised place would prove an important part of the new responsibility to “put customer needs first”.

Tew advised running a single point system to meet the FCA’s requirements.

His comments follow an announcement that the FCA asseted that the finance sector needs “a higher quality of credit information” about consumers to ensure that consumers get accurate lending advice, and launched a number of meaures targeting reform.

Tew said: “We’re working our way with lenders and dealers through Consumer Duty, interpreting what it means in material terms for how motor finance is sold, especially increased recording of information and how that needs to be managed.

“There’s no doubt that it raises the bar and therefore represents quite a substantial shift compared to the way that business is being conducted now, placing a potentially much greater responsibility on tracking consumer activity every step of the way, whether that is happening online or in the showroom.

“The conclusion we are coming to is that on a practical level, any dealer that has a multi-lender panel and is running individual processes and systems for each – something that is by no means unusual – is going to have a difficult time ensuring that the necessary information is being logged by each in an appropriate manner.

“Instead of running perhaps three, four or five platforms in parallel and ensuring that they are all meeting the FCA’s requirements, it makes much more sense to run one ‘single point’ system that is compliant and gathers all the data in one place.”

At Automotive Management Live (AML) 2022, Darren Sinclair, chief commercial officer at iVendi, explored how retailers can create the best customer experience online and in the showroom.

You can view his presentation here:

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