Fairer Finance encourages firms to protect themselves against scrutiny with new fair value assessment tool

Today, Fairer Finance has launched a Fair Value Report tool to assist firms with assessing the value offered by their products against the wider market.

Related topics:  Fairer Finance,  consumer duty
Tabitha Lambie | Editor, Protection Reporter
13th February 2024
Fairer Finance
"Many firms have carried out cursory and irregular reviews of a handful of their competitors but that’s unlikely to stand up to scrutiny."
- James Daley, Managing Director at Fairer Finance

Fairer Finance’s tool will compare comprehensiveness of product features, price, and the service provided. This makes it ideal for firms wanting to ensure they meet the fair value standards set out in the Financial Conduct Authority’s (FCA) Consumer Duty.

The fair value assessment tool uses continually maintained datasets for products across a wide range of sectors, including insurance, banking, motor, and home, as well as current accounts, savings accounts, personal loans, and credit cards.

Looking at the tool’s key features, Fairer Finance explained that firms will see measurements for the depth and breadth of product features & pricing as well as side-by-side product comparisons and polling data derived from a twice-yearly 10k customer survey, with the ability to export reports in Excel or PDF format.

James Daley, Managing Director at Fairer Finance, said that Consumer Duty requires firms to prove they offer fair value – so it’s more important that companies are clear on how they shape up against their competitors. He believes that, until now, many firms have carried out “cursory and irregular reviews of a handful of their competitors” but that’s unlikely to stand up to scrutiny.

“This tool looks to provide firms with an instant view on how they shape up against all their competitors […] for those that need to dive further into the detail, there’s also the ability to do a feature-by-feature comparison with the market - or with key competitors,” he added.

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