Insights ¦ Vulnerability review Improving understanding of the outcomes for consumers in vulnerable circumstances when engaging with financial services firms

Published by: Financial Conduct Authority
Search for original: Link

Key Take Aways

Customers in vulnerable circumstances, especially those with multiple vulnerabilities, are more prone to poor outcomes when engaging with financial services.

Disclosure of circumstances generally leads to better support and outcomes, but barriers such as lack of awareness and fear of negative repercussions persist.

Interaction of multiple vulnerability characteristics increases susceptibility to harm, with complex dynamics such as interaction, escalation, and cycles exacerbating risks.

Tailored, personal support fosters trust and improves outcomes, whereas standardised and impersonal approaches often lead to dissatisfaction and disengagement.

Effective communication channels and providing diverse options are essential, as vulnerable consumers value face-to-face over digital or automated methods, especially if they are digitally excluded or have health conditions.

Many consumers in vulnerab...