Nevertheless, the rock legend was onto something when he said that knowledge speaks but wisdom listens. Wisdom comes from understanding and acting on information so that it becomes meaningful, rather than taking it at face value.
MI is a requirement outlined by the Financial Services Authority to prove that providers and brokers are treating their customers fairly. But it is not just about collecting reams of data to sit on spreadsheets – the important thing is how firms use this information.
While the FSA stops short of outlining what such evidence should look like, it provides useful examples of good and bad practice to help senior managers decide what kind of MI is appropriate for their firms.
Processes, responsibilities and controls are as important in the TCF equation as data.
When scoping MI frameworks, it’s worth getting to grips with how back office systems can provide some of the information needed.
Technology isn’t about bits and bytes, it’s about underpinning business processes and client relationship management.
There are numerous software solutions available to help firms monitor trigger points throughout policy life cycles. This information can provide important evidence that firms are meeting their TCF responsibilities.