Are 50% of your customers really vulnerable?
Are 50% of your customers really vulnerable?
According to the FCA’s Financial Lives survey, around half of all people are vulnerable at any one time. This seems like a lot – is it accurate? And, if it is so many, what can firms do about it? Many firms are only identifying very low numbers of vulnerable customers – what are they missing?
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This white paper is authored by James Edmonds, a Consumer Duty consultant at MorganAsh, with contributions from customer vulnerability experts.
It focuses on customer vulnerability and its implications for business, particularly in regulated sectors like financial services, energy and telecommunications.
Since 49% of UK adults exhibit characteristics of vulnerability, customer vulnerability is a mainstream issue, not a marginal one. This paper explores how conditions like illness or bereavement don’t solely define customer vulnerability, but rather the harm they expose customers to, such as financial strain or exclusion.
The paper emphasises the importance of moving from identifying vulnerability to providing structured, personalised support. Tools which provide scalable solutions for assessing and addressing customer vulnerability are examined, such as MorganAsh’s MARS, which uses a ten-point Resilience Rating to measure vulnerability and recommend tailored support, ensuring consistency and empathy in customer interactions.
Key benefits of addressing customer vulnerability include enhanced customer trust, improved experiences, risk mitigation, competitive advantage and increased revenue. Societal benefits include promoting fairness, inclusion and public trust while reducing harm and fostering a sustainable economy.
The document stresses that addressing customer vulnerability is not just a regulatory requirement but a strategic opportunity. Firms that prioritise vulnerable customers can differentiate themselves, improve outcomes and build stronger relationships. The paper concludes by urging businesses to integrate customer vulnerability considerations into their operations, governance and culture, as it is both a moral and commercial imperative.
