EV has called for a data-led, two-step approach to the Financial Conduct Authority’s (FCA) forthcoming Targeted Support regime, arguing that effective segmentation and robust guidance tools are essential to delivering meaningful outcomes for consumers.
In its formal response to the FCA consultation, EV said the regulator’s proposals have the potential to transform consumer support, but warned that success hinges on using richer data sets and embedding model-driven tools into firms’ processes.
EV’s response emphasised two core principles: first, that achieving better outcomes from “ready-made” suggestions requires a wide range of consumer data points, and second, that Targeted Support should be delivered as a two-step process – beginning with detailed consumer segmentation, followed by comprehensive modelling and guidance.
Chet Velani, managing director at EV, said: “EV is pleased to see the FCA’s intention to specify a new activity in the Regulated Activities Order for providing Targeted Support, a move that validates this two-step approach and recognises the importance of tools and modellers in delivering support at scale.
“And of course, AI within Targeted Support has enormous potential to improve the consumer experience and drive efficiency. However, success will depend on three enablers: collaboration with compliance teams, maintaining transparency, and regulatory clarity.
“With clear FCA guidelines and ongoing dialogue between industry and regulators, we believe Targeted Support can deliver a brighter, better-governed financial future for all and we are excited by the opportunity to test, learn and refine.”
EV argued that segmentation is the key to success, moving beyond basic demographics to include factors such as age, retirement expectations, fund values, risk profile, marital status, housing tenure, location, and sources of income.
This granular approach, the firm said, makes support more relevant and actionable than generic, one-size-fits-all suggestions.
The company’s Cashflow API underpins this approach, offering both proactive and reactive support.
Firms can use it across their client base to identify customers at risk of falling short of retirement income needs, or react to individual events such as early pension withdrawals by providing outcome-based guidance.
According to EV, integrating these tools with its broader ecosystem – including EVDirect for guidance, EVDigital for hybrid advice, and EVPro for holistic advice – ensures that Targeted Support can be consistently tied to consumer outcomes and embedded across a client’s financial journey.
Velani added: “EV ensures that the guidance provided is not only consistent but also directly tied to consumer outcomes, ensuring the support is part of a bigger plan that can be integrated with a firm’s guidance and advice services.”
