Speech analytics providers Daviker comment on £34.5m HomeServe plc penalty.

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HomeServe plc have announced a £34.5 million penalty after receiving a Draft Warning Notice from the Financial Conduct Authority. The penalty relates mainly to historic sales and marketing, complaints handling, and controls and governance issues at HomeServe Membership Limited, and was announced by HomeServe plc on January 13th 2014.[1]

Although it includes a 30% discount for early settlement, the figure is still around £30 million more than HomeServe plc's existing provision, or about six times as much as expected, and could rise to £49.3 million if the prompt payment discount is missed.[2]

The FCA's investigation continues work previously done by the Financial Services Authority, which began scrutinising HomeServe plc's past performance in the first half of 2012.[3]

In a preliminary results statement on May 22nd 2012, HomeServe plc Chief Executive Richard Harpin said: "We took swift and comprehensive action to address the issues that we identified in the UK and are totally committed to restoring our customer focus.

"We are strengthening our management teams, retraining staff and continuing to make significant investments in customer service."

HomeServe plc's January 13th 2014 announcement stated that the business continues to trade in line with expectations, and ongoing activities in the UK are unaffected.

Speech analytics software providers Daviker supply monitoring tools to help ensure compliance by analysing the audio content of sales calls.

This can flag up key phrases, emotionally charged conversations, and positive and negative language, as well as scoring calls numerically, allowing the least compliant calls to be flagged up for further investigation.

A Daviker spokesperson said: "The size of HomeServe's penalty highlights what is at stake where sales compliance is concerned, with the FCA handing down a fine of almost £50 million in this case, many times more than HomeServe were expecting.

"Speech analytics software is a non-disruptive way to monitor for compliance, by silently analysing what is being said by your sales teams around the clock. By converting this into a numerical value, it helps to rank calls so that you can manually check the lowest-scoring and take immediate action if evidence is found of mis-selling."

Daviker Speech Analytics works alongside the company's other solutions, such as TotalWorkFlow workflow software, to ensure calls are handled correctly by the correct individual, therefore maximising productivity, visibility and compliance.

Notes to Editors

1. 'FCA Update', HomeServe plc, January 13th 2014

2. 'Homeserve faces £49m mis-selling fine', The Telegraph, January 13th 2014

3. 'Preliminary results for the year ended 31 March 2012', HomeServe plc, May 22nd 2012

4. For more information about Daviker Speech Analytics

About Daviker

Daviker deliver solutions that increase productivity and compliance, while reducing costs. Their routes can be traced back to a family-owned group of businesses in the early 1990s. Daviker Ltd was formed in May 2004 and remains family-orientated.

Daviker Group LLP
City View House
5 Union Street
M12 4JD
0161 276 1020

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Dave Fricker
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Dave Fricker
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