Marketing has always been an important part of the consumer credit journey.
Whether attracting new customers through online advertising, introducing a new product or refining a customer journey, marketing has traditionally focused on communicating benefits, generating enquiries and improving conversion rates.
Today, the expectations are different.
Consumer Duty has fundamentally changed the relationship between marketing and compliance. Communications are no longer judged solely on whether they are technically compliant.
Increasingly, firms are expected to demonstrate that their marketing genuinely helps customers understand the products and services being offered and supports informed decision-making. Recent FCA proposals to simplify the financial promotions rules reinforce this direction of travel, placing greater reliance on firms’ judgement and the Consumer Duty’s consumer understanding outcome rather than detailed prescription.
Marketing is now a governance issue
For many firms, marketing has historically been viewed as a commercial function, with compliance providing an approval process before campaigns are released.
That model is becoming outdated.
Today’s marketing decisions can influence customer understanding, product suitability, complaint volumes and ultimately customer outcomes. A campaign that attracts the wrong audience, overemphasises benefits or fails to communicate important limitations can quickly become more than a marketing issue. It can affect Consumer Duty outcomes, generate complaints and attract regulatory scrutiny.
Marketing is therefore no longer simply about attracting customers.
It is about attracting the right customers, in the right way.
Good communications begin long before approval
One of the most common questions firms ask is whether a financial promotion is compliant.
A better question is whether the customer is likely to understand it.
That requires organisations to think beyond mandatory wording and disclosure requirements.
- Could a customer misinterpret the headline message?
- Is the language appropriate for the intended audience?
- Does the promotion present benefits and risks with equal clarity?
- Would a vulnerable customer understand the information in the same way?
These are no longer theoretical questions. They increasingly sit at the heart of the FCA’s expectations around customer understanding and outcomes.
Compliance should be involved earlier
Perhaps the biggest practical change is when compliance becomes involved.
The strongest firms no longer view compliance as the final stage of the approval process. Instead, compliance teams contribute much earlier, helping shape campaigns, challenge assumptions and identify potential customer risks before creative work is completed.
This not only reduces regulatory risk but often results in clearer, more effective communications.
Good compliance should improve marketing, not slow it down.
The ALPH Perspective
At ALPH Legal & Compliance, we believe the most effective marketing governance is built through collaboration rather than sign-off.
Marketing, compliance, product and operational teams should work together to understand how customers engage with communications throughout the entire customer journey. That approach not only supports Consumer Duty, but also strengthens governance, improves customer understanding and helps firms respond confidently to increasing regulatory scrutiny.
As the FCA continues to simplify detailed rules and place greater reliance on outcomes, firms that treat marketing as part of their governance framework, rather than simply a commercial activity, will be better placed to demonstrate good customer outcomes and build lasting trust with their customers.
ALPH Legal & Compliance can assist with all aspects of your business’ compliance needs, whether that be compliance structure and policy, internal/external audit, business and regulatory change support, authorisation, supervision or just some general expert advice and guidance!