Michael Reed Smith, Customer Service Director at Standard Life, part of Phoenix Group, said: "Managing finances can feel overwhelming for those experiencing vulnerability, and it’s completely understandable that many feel hesitant about sharing their personal circumstances. However, as the research shows, those who are able to disclose their needs are more likely to receive the best possible support. Trust remains a significant barrier, and it’s important a culture of integrity and understanding is fostered by providers so customers feel safe to open up. Based on these supportive levels of transparency, there must be clarity around why certain personal information is needed and the help that is available.
"By breaking down barriers to disclosure and providing clear signposts to support, we can ensure that everyone – particularly those in vulnerable circumstances – gets the necessary care and guidance. Training our teams to recognise and respond to vulnerability with compassion and practical solutions is key, so we can effectively tailor our products and service to individual needs. Long-term, it’s important that we build a culture of collaboration across the financial services sector to share industry best practice when supporting vulnerable customers. This will increase consistency in people’s interactions with different firms and ultimately boost trust in us all."
Jayne Brown, Lead Consultant at Simplify Consulting, has said: "It comes as no surprise that the level of customers sharing their vulnerabilities with their financial services provider is so low (4/10), but it is positive that where they did, 74% felt that the firm asked the right questions. We as an industry need to do more to build confidence, strengthen relationships and have a safe route for customers to volunteer this information more frequently.
"There’s been an increased focus over previous months for firms to use tools and techniques within their processes to identify vulnerability characteristics and most of the time firms struggle with this due to the nature of transient vulnerabilities, the complexity and cost in adopting technology and having suitably qualified teams capable of providing the support required. Historically, it has been incredibly difficult to identify those more subtle vulnerabilities and solutions that are still needed, especially as customers are reluctant to share their personal situation.
"Engaging with a financial services provider, who will potentially provide services to a customer throughout their lifetime in the case of SIPP products, but for other wrappers too, is like taking on a partnership. Both parties of the partnership can benefit hugely here by working together. We need to promote good experiences with customers to give them the courage to share their personal details with the knowledge that the firm will take the appropriate action. We then need to be better as an industry in logging and sharing this information securely, so that the customer is spared the requirement to repeatedly share that insight throughout the lifecycle of their products and services. And of course, to follow up and meet their support needs so that the customer can achieve their desired outcome."
FCA Vulnerable Customer Research
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