Vulnerable Customers: more work to do

Vulnerability is a complex, dynamic and evolving challenge for regulated firms.

The recent Financial Lives survey highlights the experiences of many adults across the UK struggling to manage financially and mentally with the higher costs of living. Whilst there may be a desire to reduce some regulatory burdens on firms - Vulnerability remains a key focus for the regulator.

The latest development is the release of the FCA's findings about how firms are treating vulnerable customers following its ongoing engagement with firms on the Consumer Duty.

There is a clear message that firms should remain alert to the reality that circumstances of customers can change rapidly and they must proactively consider what steps they can take to support customers in such situations.

Good practice with Vulnerable customers

• Effective use of data to identify where customers experience poor outcomes

• Tailored consumer support where staff can adapt and offer support in a range of circumstances

• Clear communications so customers understand product information

• Use of customer feedback to inform and improve processes

Key recommendations from the FCA

• Better support systems that enable customers to disclose their needs

• Staff training so frontline staff have the skills to recognise and respond to various situations

• Effective outcomes monitoring that allow firms to take appropriate action on outcomes for vulnerable circumstances

• Senior level input in ensuring good outcomes for vulnerable customers

  
  

As the deadline for the next Consumer Duty Board report approaches, now is the time for Board members to really engage in this work and evaluate their firms monitoring activities. As the most senior individuals in a firm, Board members are in a unique position to engage key stakeholders and promote a “customer-first” approach across the business.

How can Adempi help with Vulnerable Customers

Our expert team can help you assess your current governance arrangements and drive positive change for Vulnerable Customers. Our services include Vulnerable Customer training

If you’d like to speak to one of our compliance experts about Vulnerable Customers or the Consumer Duty, you can reach us at contact@adempi.co.uk or on 0203 925 4761.