In a heighted regulatory environment, with an ever-growing focus on customer-first conduct, both regulated and un-regulated organisations are in the position whereby they are required to remediate product related issues/errors which lead to negative customer outcomes and detriment. Effective conduct risk management is a pre-requisite for all customer facing firms.

Customer-first conduct goes beyond the letter of the law as well as principles and codes that have been set out in various regulations, it extends to ensuring that customers are treated fairly, transparently and honestly. Examples include consumer related issues like PPI mis-selling, treatment of legal charges, libor, incorrect treatment of TRS, interest over-charging events, utility billing errors, and the tracker scandal.

Challenges facing organisations

Manual programmes

Currently organisations are responding to these misconduct issues by establishing large highly manual programmes.

These programmes tend to be labour intensive, have limited application of advanced data analysis technologies, are time consuming and represent a significant drain on an organisation’s resources (including financial) which detract from BAU and business enhancements to service its customers.
Product-related

Product related remediation programmes are all too common and don’t appear to be slowing down anytime soon.

Organisations need to move to a more automated, less time-consuming operating model going forward.

Furthermore, the approach needs to achieve learnings and built in capabilities from past projects, as opposed to starting afresh.

What's in it for you?

KPMG’s Remediation Centre of Excellence (“COE”) is an end-to-end data led managed service solution which deals with product related issues/errors that organisations are encountering. These are errors which have led to customer detriment as a result of the ever changing and heightened regulatory environment.

We have an abundance of remediation experience. This experience ranges from large scale and highly complex remediation programmes, whereby KPMG has managed the end to end process including:

Restitution programmes

Design, implementation and mobilisation of restitution programmes including governance and stakeholder management.
Customer journey assessment

Customer journey assessment frameworks including conduct and compliance regulatory lens.
Data solutions

Implementation of advanced data solutions including machine learning and unstructured data extraction.
Refund calculation models

Development of advanced refund calculation models.
Stop the Harm

Design and development of ‘Stop the Harm’ and longer-term strategic rectification solutions.
Communication strategies

Design and implementation of communication strategies and management of regulatory and senior executive stakeholder engagement.
External independent party

Acting as an external independent party, performing assurance over all or some aspects of an organisation’s remediation project either board/senior manager or regulator initiated.

Why KPMG?

KPMG Remediation Centre of Excellence offers the following:

Data driven solutions

Move away from a highly manual, time consuming and resource draining approach towards a data driven solution that utilises an organisation’s data. This approach provides efficiency and reduces the drain on an organisation’s resources as well as re-usability capabilities.
Advanced data analytic tools

Application of advanced data analytic tools to ingest, analyse and output interruptible results instead of individual manual case by case review.
Workflow tools

Integrated workflow tools for customer journey segmentation straight through to refund and customer communications. Critical audit trail and review capabilities are built in also.
System design

Assisting with the design, development and implementation of future solutions to assist organisations in understanding the issues that occurred.
Customer journey assessment

Incorporates customer journey assessment and root-cause-analysis framework.
Experienced team

Our dedicated Remediation Centre of Excellence team is made up of experienced product SMEs, data scientists, specialist modellers, compliance experts, project managers and stakeholder engagement managers who are committed to understanding organisations’ product related issues / errors which led to customer detriment. They will aim to remediate these issues in a way that delivers scale, efficiency and cost effectiveness.

Our solution is industry-agnostic and can be applied to customer related issues or misconduct outside of the financial services industry for both regulated and unregulated organisations.

At KPMG we are also dedicated to ensuring organisations can reduce the number of restitutions and concentrate on what matters. We, therefore, have a unique service offering that aims to either prevent these issues from occurring or to detect these issues at an early stage.

For further information on our services, or to start your Customer Remediation journey, please contact our team below. We look forward to hearing from you.