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EV Calls for Data-driven Two-step Approach to FCA’s Targeted Support to Deliver Better Consumer Outcomes

By Dominic Sow · 31 August 2025

EV responds to FCA’s Targeted Support consultation, with Managing Director Chet Velani emphasizing a two-step process of consumer segmentation and guidance tools, supported by EV’s Cashflow API.
Following the close of the Financial Conduct Authority (FCA) consultation period on Targeted Support, EV today released its formal response, highlighting the critical role of data-driven tools in delivering effective, personalised support for consumers. The response builds on EV's long-held position that Targeted Support has the potential to significantly benefit consumers, provided it is implemented through a robust, two-step process that combines sophisticated segmentation with a comprehensive guidance framework. The path to better outcomes: A two-step approach  In its response to the earlier CP24/27, EV emphasised two key conclusions that have guided its development of Targeted Support solutions:  
  • The data dilemma: Ensuring that "ready-made" suggestions lead to better consumer outcomes requires a multitude of data points. This presents a dilemma, as collecting more consumer data creates smaller, more specific segments. 
  • A two-step process: Targeted support is most effective when delivered as a two-step process involving robust consumer segmentation followed by the provision of a comprehensive modeller and guidance tools. 
Chet Velani, Managing Director at EV, commented: “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.”   Beyond demographics: EV’s approach to segmentation  EV's core view is that consumer segmentation is the key to success. Unlike generic, demographic-based approaches, EV solutions consider a wide range of factors to create granular and actionable segments. This is the EV key differentiator and significantly improves customer outcomes. Factors considered include: 
  • Current age and retirement age 
  • Fund value 
  • Client’s risk profile 
  • Marital status (single or couple) 
  • Location (e.g., inside or outside London) 
  • Housing status (renter or non-renter) 
  • Other income sources (e.g. DB pension, state pension) 
  • Existing savings (e.g. cash or ISA) 
By taking these factors into account, firms can move beyond generic suggestions and provide truly meaningful support.  The EV solution: proactive and reactive Targeted Support  EV's Cashflow API is designed to empower this vision of targeted support. It enables both proactive and reactive support, ensuring that firms can engage with customers at critical moments.  
  • Proactive support: Firms can run the API on their entire book of business to identify customers who may be off-track in their plan. For example, a firm could identify all customers over the age of 50 whose current contributions and fund value are not projected to provide a sustainable retirement income vs Retirement Living Standards. This allows for proactive intervention before problems arise. 
  • Reactive support: EV’s solution also supports a reactive approach. When a customer takes a specific action, such as taking tax-free cash at age 55 without realising the full implications for their retirement, a firm can use the API to provide targeted, outcome-based guidance. The system can provide real-world insights, such as "people in your circumstances left their cash in their pension and this is what happened," enabling a more powerful, outcome-focused conversation. 
Chet Velani concluded: “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. Utilising EV’s APIs and their seamless integrations with EVDirect (guidance), EVDigital (digital-hybrid advice) and EVPro (holistic advice) can create a connected ecosystem that consistently supports customers throughout their financial journey.” 

Companies in this story: EV

People in this story: Chet Velani

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