Market Evolution sees Key Enhance Advice Framework and Include Affordability Assessments for all Customers
Key, the top equity release consultant in the UK, has made additional improvements to its advisory structure to increase the customization of advice. This is done by prioritizing the support and comprehension of clients, while also promoting proactive monitoring of borrowing.
After analyzing its current strategy in anticipation of Consumer Duty and considering the flexible options provided by modern equity release products, as well as considering future advancements in lending for older individuals, this framework adopts a new approach to providing advice.
Every individual who seeks assistance from Key regarding their lending needs in the later stages of life will be subjected to a thorough evaluation of their financial capacity. Additionally, we will engage in an initial discussion to determine their perspectives and preferences. This process will not only inform us about the products for which the client may qualify, such as retirement interest-only (RIO) and regular residential mortgages, but also guide us in recommending the most appropriate advice path to help them obtain the most favorable outcome.
Determining the manageable amount of repayments early on can help customers understand the advantages of actively managing their borrowing. Since most lending products in later stages of life require or permit some form of repayment, choosing to repay the debt can provide more options in the future and allow products to adapt to the changing needs and situations of customers as they age.
The blog section will keep assisting customers in the best way possible, no matter what path they choose, by recommending reliable partners in areas such as pensions/investment advice, long-term care funding, and debt management.
The responsibilities of Consumer Duty set a higher standard for the entire finance industry, and prioritizing advice rather than sales is crucial in ensuring positive results for customers.
The structure will also establish Key's longstanding conviction that customization is crucial and any partiality towards a particular customer product during the advisory process must be questioned in order to ensure that a fair assessment of all options is adequately examined.
The latest affordability tool now accompanies Key's specialized Adviser Portal, which includes a flexible questionnaire, product analysis, and appropriate report formats. All advisers have undergone an extensive training program to become familiar with this revised method and seamlessly incorporate it into their daily tasks.
Eventually, Key plans to release this strategy in a Customer Charter to establish transparent anticipations regarding what customers should anticipate from the consultation procedure.
According to Will Hale, the CEO of Key, our company has thoroughly examined our approach to providing advice and the procedures we follow in light of the introduction of the Consumer Duty. We have made adjustments that aim to align with the necessary shift from treating customers fairly to ensuring positive customer outcomes.
Given the array of choices currently accessible, there is frequently not a sole correct solution and a counselor's suggestions must show careful thought of all the possible consequences and the reasoning behind selecting the most appropriate option. In a quickly changing field of lending for the elderly, this poses challenges in offering the finest guidance as it necessitates weighing various risks and advantages.
With equity release products usually not demanding obligatory repayments, the focus on affordability hasn't always been the main concern for firms that specialize in this field. Nevertheless, as the customer base becomes more diverse, new products are introduced, and innovations are on the way, we are dedicated to adapting our approach to meet the evolving requirements, the expanding market, and the increased expectations of Consumer Duty.
Essential Strategic Guidance Approach:
The advanced guidance structure builds upon Key's current method and falls into three main goals – accessibility, customization, and promoting comprehension.
