The FCA Consumer Duty in practice
Consumer Duty requires firms to communicate in ways their customers can genuinely understand. For the more than one million people in England and Wales with limited English proficiency, language support can play a vital role in delivering fair outcomes, improving understanding and meeting regulatory expectations.
This article explores why interpreting and translation services are becoming an increasingly important part of Consumer Duty compliance. It is available as a free, downloadable PDF or you can read a summary below
It’s more than just a numbers game
The FCA’s Consumer Duty has raised the bar for customer communication. Financial services firms are expected to deliver good outcomes for all retail customers, including the more than one million people in England and Wales who have limited proficiency in the English language. If important information is only available in English, there is a real risk that some customers may struggle to understand their options, make informed decisions or access the support they need.
The Consumer Duty places particular emphasis on customer understanding and customer support. Firms must communicate in ways that are clear, accessible and suited to the needs of the people they serve. The FCA also recognises limited English proficiency as a potential vulnerability, making language support an important consideration for any organisation looking to meet its obligations.
This applies throughout the customer journey, from initial marketing and product information to ongoing customer service and complaint handling. While firms are not expected to provide every communication in every language, they should take reasonable steps when language needs become apparent. Many organisations are already embracing this approach. Lloyds Banking Group, for example, works with Clear Voice to provide on-demand interpreting in more than 260 languages, helping customers access support when they need it most.
The quality of that support matters. Interpreting within financial services requires more than language fluency alone. Interpreters need an understanding of UK financial products, familiarity with regulatory terminology and the ability to handle sensitive conversations with empathy and professionalism. Firms should therefore look carefully at interpreter qualifications, safeguarding measures and relevant sector experience when selecting a provider.
The benefits extend beyond regulatory compliance. Removing language barriers can help customers resolve issues more quickly, improve satisfaction levels and build stronger relationships based on trust. Evidence from firms such as Lloyds Banking Group has shown that providing language support can lead to better customer outcomes, while these positive experiences help strengthen a brand's reputation.
Key Takeaway
For financial services firms, language support is no longer optional: it’s essential to meeting Consumer Duty standards, ensuring customers can engage fully with financial products and services, regardless of the language they speak.