However, those that do open up tend to have better experiences. Three quarters of vulnerable customers who told their firm about their circumstances (74%) said that staff asked the right questions to understand their situation, 6 in 10 (57%) said their firm ‘cared’, and 58% said their firm took action to provide support they needed.
Anyone can become vulnerable due to health, life events, ability to withstand financial or emotional shocks, or because of poor financial or digital literacy.
The research finds that vulnerable customers are more likely to report a negative experience with financial services firms, such as their bank or insurer, when compared to non-vulnerable customers.
The FCA issued guidance to help financial services firms support consumers in vulnerable circumstances in 2021 and introduced the Consumer Duty in 2023, which requires firms to deliver good outcomes for all customers, including those in vulnerable circumstances.
On 7 March 2025, the FCA has published a review and good and poor practice examples to further help firms provide the right care consistent with the Consumer Duty.
Sarah Pritchard, executive director, competition, markets and international, said: ‘It can be hard to tell your bank or insurer about your specific needs, but those who ask for help tend to feel more supported. We’ve seen good examples where financial firms are making a difference for vulnerable customers, but we know that vulnerable people report more negative experiences than others. We want firms to build on the good work identified, to help people open up and make sure they get the support they may need.’
Case Studies
Mailk’s anxiety
Malik suffers from anxiety and often finds himself severely overwhelmed. Nine months ago, his rent increased, and he panicked.
He phoned his bank about his rent increase, and told them about his anxiety. His bank offered regular phone calls to check in and offer support. Malik is now more confident about his finances and trusts his bank more. He particularly likes how it is the same person who calls him every time. It feels like someone is looking out for him, and he does not have to explain his circumstances.
Rebecca’s hearing
Rebecca wears a hearing aid which connects to Bluetooth. She normally has no issues talking on the phone, but during one call with her bank her hearing aid temporarily glitched and the call dropped. She explained this to the call handler. Her bank now proactively sends email summaries of phone calls. She found the change helpful and appreciated the positive steps her bank took without her having to ask.
Nathan’s meetings
Nathan has cystic fibrosis, which limits how much he can work. He approached his bank to discuss his overdraft. His bank invited him for regular in-branch meetings to discuss his finances and offer advice. Nathan felt comfortable enough to disclose his cystic fibrosis to them.His financial situation has since improved, and he has begun to save regularly. Nathan trusts his bank much more now.
Read the FCA's review: Firms' treatment of customers in vulnerable circumstances.
Read the FCA’s good practice and areas for improvement: Delivering good outcomes for customers in vulnerable circumstances.
Read the consumer research.
Key findings include:
44% of customers in vulnerable circumstances reported a negative experience with a financial services firms compared to 33% of customers not in vulnerable circumstances.
42% say they have disclosed personal circumstances to firms:
19% said they were encouraged to do so by the firm.
22% felt it was necessary given their circumstances.
A quarter (25%) of those in vulnerable circumstances said they feel uncomfortable explaining their situation to a financial services provider.
Customers in vulnerable circumstances reported different reasons for not disclosing personal situations, including:
Embarrassed (37%).
Don’t want to be treated differently (24%).
Worried may get a worse deal (23%).
Didn’t know my firm would help (19%).
I have security concerns (16%).
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