26 July 2023
If you are covering the FCA’s Financial Lives survey (attached), please find comments from Jenny Davidson, commercial proposition director at Quilter:
“The Consumer Duty has thrust client vulnerability into the spotlight again and today’s data from the FCA, which shows that 7.4 million people have unsuccessfully attempted to contact one or more of their financial services providers in the 12 months before May 2022, shows that the sector continues to let down the most vulnerable in society.
“The regulator’s financial lives survey also reports that adults with one or more characteristics of vulnerability were more likely to report that customer support services did not help them at all. 20% of those with low financial resilience and 20% of those with low capability reported that provider communications did not help at all, compared with 12% of those with no characteristics of vulnerability.
“Vulnerability can be a deeply personal issue. Customers are unlikely to shout about it or may be unwilling to discuss it, so a crucial challenge for all companies is to identify customers on this spectrum of risk. All employees of financial services firms must have the skills and capability to recognise and deal with customers who display signs of vulnerability, and the FCA has previously provided guidance on embedding fair treatment of vulnerable customers across businesses.
“Financial services firms can play a key role in helping those with additional requirements manage their finances. At Quilter, we have added developments that helps us better understand the needs of our customers, including a ‘notify us’ enhancement and ‘tell us once’ initiative that will helps us to get a clearer picture of what our customers need and help us and their financial adviser to be more proactive in supporting them.
“Not all customers with characteristics of vulnerability will be vulnerable. There are incidents of transient vulnerable people who, because of specific circumstances at a certain time, may not be able to make a complex decision. Navigating financial choices whilst displaying a characteristic of vulnerability may at times feel like an unsurmountable challenge, and it is vital that firms do all they can to help people easily navigate their money choices.”
