The Financial Conduct Authority (FCA) is challenging the financial services industry to focus on vulnerable customers. Our infographic highlights the scale of the challenge firms are facing in adapting operations, systems, culture and people to deal with a wide-ranging, complex and sensitive issue.
The FCA published guidance in July 2019 to ensure consistency of outcomes for vulnerable customers.
This is an admirable focus and seeks to remedy years of regulation drafted with your typical consumer in mind. However, with the Financial Lives Survey suggesting 50% of people in the UK display characteristics of vulnerability, the industry is about to be confronted with the scale of the challenge. A challenge where statistically, one in every two customers will have an actual, or potential vulnerable condition that firms must identify and manage.
This infographic brings to light the complexity of the issue of vulnerable customers and explores the regulatory history, the underlying life events and contexts that can drive vulnerability.
There are a number of technological and non-technological solutions the industry can adopt, from leveraging data and analytics to breaking competitive silos and sharing best practice from across the industry. Culture will have a key role to play, as the only robust response to the principle-based approach and guidance from the regulator is to ensure vulnerable customer considerations permeate every activity the firm undertakes, with commitment from the top.
