More than half of financial services customers in the UK would now qualify as being vulnerable, up 7% in one year, according to new research from Huntswood, a ResultsCX company. ResultsCX provides Customer Experience Management (CXM) services to leading global companies including several Fortune 100 and FTSE 250 firms.
The study from Huntswood, a leading UK-based consulting and customer solutions company working across a wide range of sectors including financial services, reveals that 44% of customers were classified as vulnerable in 2023, rising to 51% now.
The rise is largely due to a near-doubling in cases of mental health conditions amongst consumers (10.2% in 2023, rising to 19.5% in 2024)
A greater number of those surveyed also said they felt financially stressed in 2024 (16.7%), an increase from 14.1% in 2023.
The study also identified a jump in the number of customers reporting to have an addiction and are experiencing financial distress because of it – 3.5% today compared to 0.8% in 2023.
Overall, 52% of vulnerable customers are experiencing one circumstance that classifies them as vulnerable, 24% are experiencing two, and 14% three. One in 10 (10%) are experiencing four or more issues that classify them as vulnerable.
The survey found a worrying number of individuals are still unaware they are vulnerable (67% in 2023, falling to 53% now).
The FCA defines vulnerability as “a customer who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care”. The regulator has made it clear that all customers are at risk of becoming vulnerable, and that firms should consider vulnerability on a spectrum, related to four key drivers – health, life events, resilience and capability.
Huntswood Chief Executive Martin Dodd said: “Our research shows that a higher proportion of the population is vulnerable and may need extra support. Part of the increase in awareness comes from financial services firms actively asking customers about their needs, although too many just rely on individuals self-reporting.
“We have seen examples of firms not recording this information, meaning customers must say they are vulnerable multiple times to get proper assistance. The right culture and technology, used properly, can be a major help for firms seeking to improve how they treat their vulnerable customers.”
ResultsCX Managing Director, UK & Europe, Siddharth Parashar, said: “Although awareness is improving, just over half of the vulnerable population still do not see themselves as being vulnerable. Being vulnerable is not always a life-changing problem for a customer, nor does it have to affect how they interact with firms or how firms respond to them.
“But the fact remains that many vulnerable customers do need support they are not getting when dealing with financial services companies. These firms must urgently assess how they detect and help customers who are vulnerable, especially when so many do not realise they may need extra assistance.”
Huntswood has a long history in delivering projects that deliver fair outcomes for vulnerable customers. Its advisory expertise and operational finesse allow it to ensure that all of its clients’ customers receive the best service possible.
Huntswood can help organisations write the policies and governance strategy that underpin their approach to supporting customers in vulnerable circumstances. Huntswood then embeds the systems and resource needed to monitor, respond to and protect those who most need it.
