We have had a few ‘interesting’ interactions with clients and providers this week. One client is struggling with their bank. In essence, they have banked with them for over 50 years, and have always had a ‘personal banker’. They used to be called bank managers….

That service has been withdrawn, and they are now – as vulnerable clients – struggling.

In the latest twist, the client tried to pay two invoices from their accountant. One was paid, the other was declared a fraud, and the client had their bank account frozen, and their app shut down.

Notice that the bank punished the client for a totally invented fraud. Invented by the bank, despite the client explaining – for two hours - to the bank what was going on.

Funny enough, the next step was to suggest that if they encashed and moved all their investment portfolios to the bank, they could have a form of private banker service.

I’m certain that was just a coincidence…

In another interaction, we rang a small bank to see if they would be suitable for some of our clients. We asked if their current terms, charges and eligibility were on their website.

“No” was the answer. “Because of Consumer Duty, we have to speak to everyone to see if our services are suitable. It used to be the case for High Net Worth clients, but now it’s a bit of a grey area.”

When we spoke to the first client, he was frustrated that he – in his 80s – must deal with automation and telephone menus and struggles to speak to anyone at his bank or insurance company.

But – in his words: “That’s why I am with Perceptive. When I call, I’m never put on hold, someone always answers the phone and they acknowledge my emails and try to help. I get to speak to a human.”

We suggested there may be value in that.

“Like you would not believe” he replied.

Beyond being good for our egos, what are the lessons here?

1. Big companies in our sector just suck at client service. Whatever they do, the experience of actually being a client is just really not good. We all know that from our personal lives. 

2. But they can point to any particular metric and say, “See, we answered the phone and hit our service levels and so we add value.” 

3. Small firms are hugely better at delivering great client experiences, but the metrics used to measure value – number of meetings held, for example – simply don’t measure that value. 

4. The FCA is trying to be a service regulator, rather than a product regulator. I applaud that. 

5. But I do wonder if it is listening too much to those who have a relationship with the clients' money, rather than a relationship with the client themselves. 

6. Advisers are the only part of the sector that live and breathe the client experience. We have a unique and special insight and value.

It is really long past time for us to actually speak to – rather than shout at – the FCA, and for them to listen to us, rather than tell us what to do so they can truly understand the personal service and value we offer. 

Phil Billingham FPFS CFP Chartered Financial Planner, Chartered Fellow (Financial Planning) is a Financial Planner and a director of Perceptive Planning, a Chartered Financial Planning firm based in London and Essex. https://www.perceptiveplanning.co.uk/

Biography: Phil joined the profession in 1982 and is a past director of the Institute of Financial Planning (IFP) which merged with the CISI in 2015. He is a past member of the Financial Planning Standards Board (FPSB) Regulatory Advisory Panel. He is a specialist in helping advisers cope with regulatory change and has worked with advisers, planners and regulators in the UK, Europe, USA, Canada, South Africa and Australia. He writes this column most months for Financial Planning Today.